Car Finance Question for Newbie?
Discussion
Hi guys,
Fresh outta uni and might be starting my first proper full time job soon which requires site visits (i.e: need a car).
I've talked to my bank about car loan, but as you probably have already guessed you've got to be out of the probationary period to qualify. Other than this, eligibility and affordability is OK for someone my age, income and status (was quoted 11% APR)
I've got about 1.2k in savings, which could arguably be spent on a car. However I fear that at this price you're not really going to get something that's reliable enough for daily commuting and site visits and not be under powered. I would also ideally like something mid-size, rather than a supermini, as I personally find them a bit rattly and claustrophobic.
What would be the best way forward? I know Drover/Wagonex do all-inclusive car renting?
Thanks.
[And yes I will be putting money aside monthly for mortgage deposit, before anyone brings up the default 'buy a house' response
]
Fresh outta uni and might be starting my first proper full time job soon which requires site visits (i.e: need a car).
I've talked to my bank about car loan, but as you probably have already guessed you've got to be out of the probationary period to qualify. Other than this, eligibility and affordability is OK for someone my age, income and status (was quoted 11% APR)
I've got about 1.2k in savings, which could arguably be spent on a car. However I fear that at this price you're not really going to get something that's reliable enough for daily commuting and site visits and not be under powered. I would also ideally like something mid-size, rather than a supermini, as I personally find them a bit rattly and claustrophobic.
What would be the best way forward? I know Drover/Wagonex do all-inclusive car renting?
Thanks.
[And yes I will be putting money aside monthly for mortgage deposit, before anyone brings up the default 'buy a house' response
] Edited by jkk45 on Thursday 24th October 17:29
Edited by jkk45 on Thursday 24th October 17:31
Edited by jkk45 on Thursday 24th October 19:02
Don't be afraid of running an older car for work. Choose wisely, and an old shed can be fine.
About 20 years ago I changed employers, and decided to run my own car rather than have a company car. My role as an IT field engineer meant driving 30 to 40k a year. I ran a succession of old Granadas and Carltons. I would buy a reasonably sound (not too rusty) car for under a grand, give it a decent service, and drive it until I got bored with it. Find another one before the old one died and became worthless, and repeat. The only breakdown I had in 4 years of this was a broken clutch cable.
I'm sure that the equivalent cars today are more reliable than they were back then. An old 5 series or Mondeo or Volvo should be up to it.
About 20 years ago I changed employers, and decided to run my own car rather than have a company car. My role as an IT field engineer meant driving 30 to 40k a year. I ran a succession of old Granadas and Carltons. I would buy a reasonably sound (not too rusty) car for under a grand, give it a decent service, and drive it until I got bored with it. Find another one before the old one died and became worthless, and repeat. The only breakdown I had in 4 years of this was a broken clutch cable.
I'm sure that the equivalent cars today are more reliable than they were back then. An old 5 series or Mondeo or Volvo should be up to it.
Sochaux said:
Get a personal bank loan of £7,500 over 5 years, repayment of approx. £135 a month (3% interest). Spend £5,000 on a decent car, save the rest for insurance and maybe have a little left to treat yourself 
If the job doesn’t work out, sell the car and pay off the loan.
Sounds good, but the issue is I really need the car prior to starting work.If the job doesn’t work out, sell the car and pay off the loan.
And I won't qualify for any sort of finance (whether car finance or personal loan) in advance of the job. You have to prove you have regular income, and be outside of probationary period.
Edited by jkk45 on Thursday 24th October 19:24
Bought 1.7cdti Astra for £1400 in Jan 2017 done 60k miles in it since,mostly for work,regular 300 mile trips to Reading,Essex,Aberdeen ,fort William,never missed a beat,if I was late or missed a shift could've cost firm £10+k so need reliability,unless you're going into central London,older motor could work,but need to be able to do bit work on it,keeps cost down too
Don't get too hung up on the probationary period thing.
Anyone, whether fresh out of uni or not, effectively has a 2 year probationary period in a new job where you can be binned off with the minimum of notice. Plenty of people who are less than 2 years in their current job get car finance every day.
If you would rather get a car on finance than a £1200 banger then set your monthly budget, choose a car and a deal sensibly and apply for the car loan with the dealer. It's unlikely to cost you more than the 11% your bank will do you at,
You will doubtless already have a credit history, based on things like mobile phone and utility payments, rent, credit cards etc and that will form the basis of the lender's decision.
Sure there's a risk if you do indeed lose your job, but if borrowing money to get a suitable car for the job is your prefered solution then dont be shy about applying for dealer finance.
Anyone, whether fresh out of uni or not, effectively has a 2 year probationary period in a new job where you can be binned off with the minimum of notice. Plenty of people who are less than 2 years in their current job get car finance every day.
If you would rather get a car on finance than a £1200 banger then set your monthly budget, choose a car and a deal sensibly and apply for the car loan with the dealer. It's unlikely to cost you more than the 11% your bank will do you at,
You will doubtless already have a credit history, based on things like mobile phone and utility payments, rent, credit cards etc and that will form the basis of the lender's decision.
Sure there's a risk if you do indeed lose your job, but if borrowing money to get a suitable car for the job is your prefered solution then dont be shy about applying for dealer finance.
Another option for you could be,
Get a car for something like £750, something you really don't care about, but that you may get a small warranty with.
When you're then happy to go down the finance route, chop it in as a P/X at one of the many places that give a £1500-£2k guaranteed PX.
Get a car for something like £750, something you really don't care about, but that you may get a small warranty with.
When you're then happy to go down the finance route, chop it in as a P/X at one of the many places that give a £1500-£2k guaranteed PX.
I would buy something like this and run it until the wheel fall off or you get bored.
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