How would you would finance a car, in this situation?

[pistonoobs]

This might be a bit of a long one, so if you're bored easily, go back to the topic list i guess!

I have cash, £22k.

I have a car which i want to get rid of. Trade in value is £2k (max).

I want an E90 Touring, 330d with lots of extra's (nav/xenons etc), however, for the mileage/year, this will cost close to £17k.

Im looking at moving house (mine is up for sale), so if i sell mine, i'll need as much money in the bank to put towards a new house, as i'm looking to buy something worth more than what my lender will give me (so the cash in the bank, plus any profit from the current house, will essentially 'top up' the mortgage to meet the cost of the house. Eg: House is 200k, lender will give me 150k, 30k profit on current house, 20k cash to meet the final cost). Obviously house purchase is far from complete (i've only had one viewer on my house), and i dont know the full value of anything i will be buying yet.

I've looked at reducing my car budget to about 11k (meaning i'd spend about 9k with my trade in), but i cannot find a nice enough car/what i want for this money.

If this were you what would you do? Throw the savings into the car and leave nothing in reserve (im really not sure i want to do this)?

Get some sort of a bank loan? Finance agreement?

My monthly outgoings are fairly small at the moment (about 45% of my monthly wage, mortgage included) but im unsure how much this will change if i get a new house. As a result, i don't want monthly payments that would obliterate my monthly wage either.

I know this sounds confusing, and part of me thinks i should just go and buy a bit of a banger, but the problems with my current car frustrate me and i want a little security from having something newer with less useage behind it.

Any sensible ideas?

[geeks]

pistonoobs said:

This might be a bit of a long one, so if you're bored easily, go back to the topic list i guess!

I've looked at reducing my car budget to about 11k (meaning i'd spend about 9k with my trade in), but i cannot find a nice enough car/what i want for this money.

Then you are being too fussy!

[limpsfield]

Personally I would get the house sale/new purchase out of the way then look at the car situation.

[Chrisw666]

limpsfield said:

Personally I would get the house sale/new purchase out of the way then look at the car situation.

This, 100%. When moving into a new home I wouldn't want a finance commitment for something I didn't need and would want as much cash free as possible.

[C.A.R.]

A car is only going to go down in value

But you can't hoon your house either.

But if your dream car for your money is a diesel estate with toys I worry for you. There are literally thousands of different cars you could consider at half or even a quarter of your budget.

You just have to weigh up how important it is that you're 'that bloke with the nice diesel BMW'

[Ecosse RM]

I've slept in my car...... Get the house sorted first, then haggle on this :

http://classifieds.pistonheads.com/classifieds/use...

[deltashad]

Get the house sorted out first before taking on any loans or spending valuable cash you may need.
There's no guarantee you'll get the asking price so keep a little in reserve. You may also have to spend money on your own property to make it more sellable in these recessive times.

Buy and live in the new house for a few months to see how much disposable income you have left.

This loan calculator is easy to use and will give you an idea of what you'll pay if you have to go down this route to stay happy.
http://www.comparethemarket.com/loans/
i.e. £6k over 3 years= £185 per month.

Do the house first though. It's what my mum would say, and she's always right.

[pistonoobs]

Chrisw666 said:

This, 100%. When moving into a new home I wouldn't want a finance commitment for something I didn't need and would want as much cash free as possible.

I don't predict i'll sell my house this year though.

My own vehicle also has questionable reliability, and is costing me a fair bit in petrol at the moment.

C.A.R. said:

But if your dream car for your money is a diesel estate with toys I worry for you. There are literally thousands of different cars you could consider at half or even a quarter of your budget.

All of which i dont like. I'll buy what i want

[limpsfield]

C.A.R. said:

But if your dream car for your money is a diesel estate with toys I worry for you. There are literally thousands of different cars you could consider at half or even a quarter of your budget.

I didn't actually read properly what car you want, but bearing this in mind what's the rush?

Sod the hassle of looking for a car which there will still be plenty of in a few months, and arranging finance if necessary alongside buying a house. Get the house done first. And then buy my car for £13k... (in the classifieds)

[Xaero]

I assume you've budgeted for the house move, solicitor fees, estate agent's percentage, etc?

If your current car is in reasonable condition, I don't suspect it'll lose much value any time soon, so I'd advice getting the house move out the way first, and then deal with the finance of a new car after. Pretty much any dealer would be happy to help you finance a car from them...

[sleep envy]

Have you budgeted for stamp duty, agents and legal fees and other incidentals with the property sale/purchase?

[pistonoobs]

sleep envy said:

Have you budgeted for stamp duty, agents and legal fees and other incidentals with the property sale/purchase?

Pretty much. The difficulty is, i've not even started looking for a house to buy, firstly because mine is unsold, and secondly because i dont think mine will sell until next year, and i dont want to start viewing people's houses 'for something to do'. As a result all my figures are a bit rough, but budgeted for the highest i can afford. Anything less is a bonus.

The numbers i gave in the example were vague, but i can break them down if needs be, according to my own calculations anyway.

[Chrisw666]

pistonoobs said:

Chrisw666 said:

This, 100%. When moving into a new home I wouldn't want a finance commitment for something I didn't need and would want as much cash free as possible.

I don't predict i'll sell my house this year though.

My own vehicle also has questionable reliability, and is costing me a fair bit in petrol at the moment.

:

Spend a few £ on a good service or sell it and buy a cheapish estate (maybe an E46) to run until you have done the house sale. The 330d you want will be around in a couple of years and newer models will be in budget.

[J4CKO]

I wouldn't compromise on the house to buy a car, a car is a depreciating, temporary purchase and a house is a long term investment, one that will appreciate so I would get the house done, run a cheap car and then see where you are in 12 months. I earn well, have no mortgage and would think long and hard before spending the best part of 20 grand on a BMW estate.

[tyrewrecker]

E46 m3

[VolvoT5]

Buy a cheaper car (lower spec / higher mileage) and keep money in the bank for the house move. Better still don't buy a new car until you have the house purchase sorted. Seriously, house/property is generally a good longterm investment, a car is a depreciating asset.

[gary3170]

i,d go e60 msport diesel way you,ll get a decent one for 11k ;-)

[GoneAnon]

I'll gve you the same advice I gave our youngest before he went out and bought his new car.

Save up the payments you would be making for a year first. That proved he could afford it, opened his eyes to the commitment he was going to take on, and reduced the loan he needed when he eventually went ahead.

[Fox-]

£17k on an E90? You'd have to be bonkers.

[jamiebae]

To answer the question actually asked, rather than giving an opinion....

Secured finance on the car (not a loan) over 5 years to keep the payments to a minimum and therefore reduce the impact on the 'affordability' factor of the mortgage would be the way to go. Unsecured finance can be treated differently to hire purchase so is not ideal in this situation.