New car - what can I really afford?

[alexyfoot]

Hello guys, I am new to the forum but am looking for some help from the more experienced people in purchasing cars.

To the point - I will be graduating this year from university and having a job that pays something around the 20-21k mark. I would really prefer to have my own vehicle so I am not limited to public transport (which isn't cheap either). From what I calculate, I should be able to afford around 170-180 quid per month for car finance, but I am not sure what that can get me in terms of car price from a dealer - I am 23, student loan (10k), no credit card, always paid my bills and stuff on time so far. What sort of car price range should I be looking at - something like 3-4k mark or something like 7-8k mark would be more realistic (I believe you can get used cars from dealers on lease right?)? Never had any experience with loans, hence why I am asking here.

Cheers.

[alexyfoot]

Not fixed but should be able to put up to about 1k I think.

I do know they have calculators - but problem is I don't own a house/mortgage and do have a student loan so I am not sure if I qualify for their offers. I have a feeling if I go for something more expensive I will only keep getting rejected and I will probably need a car almost immediately after I finish university.

[alexyfoot]

Captain Muppet - I mean for the car itself, not including the rest of the expenses.

The problem with online calculators is they always assume perfect credit rating I believe, and they presume you can actually get the loan, while I am not sure if I am eligible for more than 3-4k with my background (I think I should be able to get that much at least).

[alexyfoot]

Is there going to be much difference between car insurance for a new eco car (say Kia Rio type of thing) compared to an old 2-3 hatch? This is going to be my first card in the UK (no NCB as where I come from I wasn't on the insurance policy...) - are these old cars more than 1000k to insure for a young driver (23)? I don't want to end up spending 1500 on insurance and at the same time drive a crappy 1999 car that can break down any minute.

Btw, I am not into fast cars and sporty suspension stuff - the more comfortable the interior, the better - so newer eco cars appeal a bit more due to nice equipment that come with them - but again I don't think I can afford one.

http://www.creditplus.co.uk/car-loan-calculator.ht...

On this one 4 year loan, 1k deposit and 7k vehicle returns 185/160 depending on whether I put good or fair credit rating. My guess would be I am somewhere around fair - so 180 quid would work for me. Question now is what's the most comfortable and relatively cheap to insure thing I can get for 7k?

Edited by alexyfoot on Monday 20th February 13:44

Edited by alexyfoot on Monday 20th February 13:48

[alexyfoot]

Well, to be fair my experience is with a 1997 Lancia - so thing don't get any less reliable than that but there was constantly something broken on it - that is why I am not a fan of really old cars. I think I will settle for something in the 2-3k region and try to pay it in an year if possible.

what is BOMAD?

[alexyfoot]

I have checked some insurance quotes for different cars. I have calculated a roughly fuel bill and tax depending on what I get. Now repairs is big unknown for old cars - so that is very guesstimate-y, but I do reckon I can spend up to about 180 on a car purchase every month based on lifestyle and other expenses I have.

[alexyfoot]

Chris - but this includes the price to own the vehicle for that period - that's exactly the sort of deal I'd ideally go for as in those small city cars you get excellent interior and are basically free to maintain due to warranty, etc, which matters most to me personally. Trouble is with my background, I am not sure if I am eligible for such offers. Otherwise, something in the 207 class but maybe slightly cheaper (i.e. Kia or something like that) would be ideal for my taste (even those hire offers are OK as I think I will easily fit even into 5k, let alone 10k mileage limits).

[alexyfoot]

dapearson said:

So you're willing to pay £180 to travel approximately ~400 miles per month?

Paying 4 quid a day for buses isn't much better. Paying ~400 quid a month to have a car is better than paying 120 quid on public transport my opinion especially when workplace is not in a remotely convenient location and it will take me three times the time to go from/to work.

Anyway, I will probably settle for something old and comfy...and slow (damned insurance) for 2-2.5k, just because I don't think dealers won't offer me the same deal they do to a 45 year old home owner.

...and some day I may get a proper car if everything goes well.

If anyone knows anything good besides the civic in this budget that won't cost a fortune to insure, please let me know

Cheers for the replies!

edit: Yes, Polos should work, too.

Edited by alexyfoot on Monday 20th February 14:33

[alexyfoot]

OK, it turns out my salary is going to be a bit higher than I expected (26k) so I could afford a proper car at something like 220 a month as long as the bank approves my background for a loan. I am so so happy right now. Anyone had experience with those new Kia Rio-s like these?
http://www.kia.co.uk/new-cars/range/compact-cars/n...

Anyone heard any KIA(specifically Rio) horror stories? Or if anyone has seen anything that is better value - obviously when the time comes I will shop around but I'd like to do a few test drives beforehand so need some shortlist.

Edited by alexyfoot on Monday 20th February 18:14

[alexyfoot]

Because my work is going to be on city outskirts and want to live in a city centre (Bristol) - thus I don't want to spend an hour in a bus - I love driving a car even in a occasional traffic jams and have grown used to it back in my home country. I don't want to go back to public transport as I've hated it for years

What is the issue with the C'eed? Obviously it is a different model but I guess some issues would be generic.

vrs - that is why I am asking for what would be better in terms of equipment, I am not too fussed about performance, you don't get any in a traffic jam. From what I saw these last 2-3 days, this seemed the best equipped car for roughly 10k. Fiat 500 is not bad and looks great but they are really small + italian cars are not what I'd associate with reliability having had experience with a couple obviously old ones.

Edited by alexyfoot on Monday 20th February 18:20

Fiestas are also good in that budget, right? Also I was looking at Seat Ibiza, but I am not sure how reliable they are.

Edited by alexyfoot on Monday 20th February 18:23

Edited by alexyfoot on Monday 20th February 18:25

[alexyfoot]

vrsmxtb said:

Are you set on buying new? With a 10k budget I'd definitely look at nearly new, as in 6 mths-1 year old.

Personally for a reliable, nearly new hatchback I'd look at the Toyota Aygo, Mazda 2 or a Skoda Fabia 1.2TSI, but then I like being a bit different. Kia 7 year warranty is very attractive though.

The Aygo is a tad too small for me I think (trouble is I haven't even been in these cars...) - I am used to a limousine class Lancia K I really have trouble accepting myself in a non-spacious car but they are cheaper to insure so I have to get one of these. However, the Aygo is too small. Mazda 2 is the minimum I'd go for but I need to check what sort of specks I will be able to get when purchasing.

The 1 year old ones seem great as that is when the steepest depreciation occurs but are the financing deals as good as when you are buying a new one? Obviously, if buying in cash this is the best option, but is the same for financed deals?

Most people are for buying a cheap car, I guess you guys are right - this will be my first option as long as I find something good and value for money. If so many people say the same thing, it must be right!

Edited by alexyfoot on Monday 20th February 19:01

[alexyfoot]

hornetrider - I am not a business and that would cost me about 5k a year to insure. Thanks anyway

[alexyfoot]

Well, it won't be cheap, way out of my budget...anyway, I think I will stick with the common advice here to buy something older, but I really don't want a really old car that I risk of having constant breakdowns with. If I limit my autotrader filters to 5 years and 40k miles and 4k pounds, these are the options I see:

Fiat Grande Punto
Ford Fiesta/Focus
Peugeot 206/207/307
Seat Ibiza
Toyota Yaris
Renault Megane

I think I like the 207 and the Focus. Are they amongst the sensible choices?