£10k (ish) budget
Discussion
Basically looking for some advice.
I am 25 yo and recently passed my test while simultaneously being approved for a car loan from a company called 'car finance plus' (anyone vouch?). They deal with folk with bad credit and alike, of which I have, unfortunately. They've conditionally approved my application and all I apparently need to do is to email over some form(s) of ID and a payslip and it's done (apparently).
Permitting this application goes smoothly (toes crossed) I'm in the market for anything quite fun to drive, relatively sporty and not gonna break the bank insurance wise. Shortlist is as follows:
VXR (09 onwards) (GTC?)
Megane RS (2010 onwards)
Ford Focus ST
Clio Sport
I have heard the VXR and Megane don't hold up too well in regards rear visibility, and yet they are the two that keep catching my eye, especially the VXR, just so nice to look at. Quotes insurance wise are around £1500-2000.
Can anyone weigh some of my suggestions up and help me out here. Thanks.
As its your first car why not go for something like a Clio 172/182 or Suzuki Swift Sport. Probably pick up a decent one around £2k and insurance shouldn't be that bad either. You'll probably get similar amount of enjoyment for the fraction of the price and it won't hurt as much if you end up crashing it or knocking it here and there.
At 25 please don’t get a loan to pay for a car.
I’ve a lot of friends who are still paying off loans that were taken for cars when they were early 20s (I’m nearly 30). You’ll regret it.
Just buy something you can afford (with your own income) and be happy with that. When you’re older you can save and buy something better. Debt has been normalised, but you really don’t want to be getting into that place. It’s just a car. Find one that’s cheaper to insure too. And spend the money you save on something better.
Plenary of good cars for cheap.
I’ve a lot of friends who are still paying off loans that were taken for cars when they were early 20s (I’m nearly 30). You’ll regret it.
Just buy something you can afford (with your own income) and be happy with that. When you’re older you can save and buy something better. Debt has been normalised, but you really don’t want to be getting into that place. It’s just a car. Find one that’s cheaper to insure too. And spend the money you save on something better.
Plenary of good cars for cheap.
Edited by 2wheelsjimmy on Friday 23 March 06:48
2wheelsjimmy said:
At 25 please don’t get a loan to pay for a car.
I’ve a lot of friends who are still paying off loans that were taken for cars when they were early 20s (I’m nearly 30). You’ll regret it.
Just buy something you can afford (with your own income) and be happy with that. When you’re older you can save and buy something better. Debt has been normalised, but you really don’t want to be getting into that place. It’s just a car. Find one that’s cheaper to insure too. And spend the money you save on something better.
Plenary of good cars for cheap.
Especially since you already seem to have a bad credit record (which makes me suspect the finance company who are approving you are probably not exactly low interest).I’ve a lot of friends who are still paying off loans that were taken for cars when they were early 20s (I’m nearly 30). You’ll regret it.
Just buy something you can afford (with your own income) and be happy with that. When you’re older you can save and buy something better. Debt has been normalised, but you really don’t want to be getting into that place. It’s just a car. Find one that’s cheaper to insure too. And spend the money you save on something better.
Plenary of good cars for cheap.
Edited by 2wheelsjimmy on Friday 23 March 06:48
Everybody wants to live beyond their means......
Fair enough if you can obtain cheap finance, but it looks like the best case scenario on £10k from Car Finance Plus is 7.9%. Over 3 years you’re looking at £300+ per month, plus insurance, plus tax, plus running costs, plus depreciation. Would you be comfortable thinking the car is in reality costing £600 a month?
andrewparker said:
Fair enough if you can obtain cheap finance, but it looks like the best case scenario on £10k from Car Finance Plus is 7.9%. Over 3 years you’re looking at £300+ per month, plus insurance, plus tax, plus running costs, plus depreciation. Would you be comfortable thinking the car is in reality costing £600 a month?
While simultaneously depreciating massively. Plenty of time to build up no claims in a cheaper but still quick car, meaning in a few years you can have one of those on your list (or something faster) without paying through the nose on tick.
This is a cacophony of bad ideas.
I'd take the advice of others, avoid the finance because you will regret it when you write off the car (to be blunt, new driver in a hot hatch is almost stereotypical ditch finder territory).
You're also probably underestimating the costs of running a car (consumables, servicing etc) so don't stretch yourself financially.
I'd be looking at a 2010 Fiesta Zetec S if you want reasonable looks, performance (relative) and affordability.
I'd take the advice of others, avoid the finance because you will regret it when you write off the car (to be blunt, new driver in a hot hatch is almost stereotypical ditch finder territory).
You're also probably underestimating the costs of running a car (consumables, servicing etc) so don't stretch yourself financially.
I'd be looking at a 2010 Fiesta Zetec S if you want reasonable looks, performance (relative) and affordability.
I would agree with some of the other posters on not getting yourself into further debt, especially if your credit rating isn't brilliant. I have many friends who financed nice cars and then for one reason or another their circumstances changed and they were stuck with the loan and car. Buy something you can afford, especially if it's a first car and enjoy it. I guarantee if you ask around everyone will say how much they love their first car, even if it was a heap of junk. I'd say by something petrol, small and japanese for reliability and you really can't go wrong. Look to spend maybe £2-3k and that'll get you into something decent that isn't too old. Save your pennies and work on your credit rating and you'll be much happier when you don't have to stretch yourself as much for a new car. I'm now 26 and drive an 11yo Honda Civic, I could happily afford something much nicer but would rather do something more constructive with the money saved. Also, the best thing about buying a cheaper car is it's already suffered most of its depreciation so if a few months in you decide you still want a nicer car you can sell the car you have and not lose much on the transaction so very low risk to try. Each to their own but that would be my advice. Good luck whatever you decide.
r350 said:
Only reason I was/am entertaining finance/loan options is at present, it would take me quite a while to put down an amount of £ outright and walk away with a car, which is what I want, as opposed to waiting months. I'll look into chepser options however
But the main point people are making is that while you own that car, you will be paying interest on a depreciating asset. Which means that - unless your finances are likely to improve significantly in the next couple of years - you are likely to be in a worse position then than you are now.r350 said:
Only reason I was/am entertaining finance/loan options is at present, it would take me quite a while to put down an amount of £ outright and walk away with a car, which is what I want, as opposed to waiting months. I'll look into chepser options however
Then borrow a smaller amount, or even utilise an arranged overdraft facility.Improving your credit score is all about small bites, not taking on a (relatively) large debt just because someone is willing to offer it.
Do you need a car, or do you want one? Because if it's need then you could pick up an MOT snotter for a few hundred quid and probably sell it for little loss in 6 months.
r350 said:
Honestly thanks man some pretty sturdy advice in here. It's making me really pause and ponder on if I'll be worse off in a few years financially speaking..
I took out a 10k loan at 25 on a car (last year). Good, solid car but sold it within six months because I found it a bit dull (lost 1k). Bought another car (Type R) for 6k. Sold it in five months cause it was a dog, lost 2.5k (sold for 700 less than I bought it for, spent 1800 on repairs/consumables). Now looking at buying cheap and in cash - wish I had done that a year ago and I would have 3.5k more in my house deposit fund! Older cars can be more rewarding to own than newer shiny depreciating things. If you get something that already has a few battle scars, you won't care nearly as much when it gets a few car park door dings or the odd scratch.
If you want a reliable fun car car that won't cost a fortune for your to buy/maintain/insure, the Suzuki Swift Sport suggestion above is hard to beat.
I think I'd be looking for the least rusty MX5 for about £1500. Really tough, rewarding to drive and cheap to fix if it breaks. They rot badly though, so you need to find one that has been cared for and preferably garaged. My bro bought one recently - it still had the bowls club car park stickers in the window! 2005, 1.8, 50,000 miles with full service history, lsd, and fresh tyres - about £1500. He likes it, and he's had a Monaro, M3s, Imprezas, Audis and Golf GTIs...
If you want a fast cheapy, a Toyota Corolla Tsport has the same engine that Lotus use in the Elise - a screaming 190bhp - in a boring looking hatchback that will surprise a lot of other road users...Under £1500 will buy a good one.
There are lots of rewards to be had from cheaper cars...remember that most of today's £10,000 hot hatches might only be worth £2000 to £3000 in 3 or 4 years time. That's a lot of cheapies that you could have bought, thrashed and thrown away without tears! Check it out for yourself: look at a £10k car advert, then look at adverts for equivalent cars by the same manufacturer of 3 or 4 years older. It's quite an eye opener!
My cousin has just realised that he has lost about £20,000 in depreciation in his 4 years of Vauxhall Insignia...actually, that makes them a really cheap used family car!
If you want a reliable fun car car that won't cost a fortune for your to buy/maintain/insure, the Suzuki Swift Sport suggestion above is hard to beat.
I think I'd be looking for the least rusty MX5 for about £1500. Really tough, rewarding to drive and cheap to fix if it breaks. They rot badly though, so you need to find one that has been cared for and preferably garaged. My bro bought one recently - it still had the bowls club car park stickers in the window! 2005, 1.8, 50,000 miles with full service history, lsd, and fresh tyres - about £1500. He likes it, and he's had a Monaro, M3s, Imprezas, Audis and Golf GTIs...
If you want a fast cheapy, a Toyota Corolla Tsport has the same engine that Lotus use in the Elise - a screaming 190bhp - in a boring looking hatchback that will surprise a lot of other road users...Under £1500 will buy a good one.
There are lots of rewards to be had from cheaper cars...remember that most of today's £10,000 hot hatches might only be worth £2000 to £3000 in 3 or 4 years time. That's a lot of cheapies that you could have bought, thrashed and thrown away without tears! Check it out for yourself: look at a £10k car advert, then look at adverts for equivalent cars by the same manufacturer of 3 or 4 years older. It's quite an eye opener!
My cousin has just realised that he has lost about £20,000 in depreciation in his 4 years of Vauxhall Insignia...actually, that makes them a really cheap used family car!
Toed64 said:
Older cars can be more rewarding to own than newer shiny depreciating things. If you get something that already has a few battle scars, you won't care nearly as much when it gets a few car park door dings or the odd scratch.
If you want a reliable fun car car that won't cost a fortune for your to buy/maintain/insure, the Suzuki Swift Sport suggestion above is hard to beat.
I think I'd be looking for the least rusty MX5 for about £1500. Really tough, rewarding to drive and cheap to fix if it breaks. They rot badly though, so you need to find one that has been cared for and preferably garaged. My bro bought one recently - it still had the bowls club car park stickers in the window! 2005, 1.8, 50,000 miles with full service history, lsd, and fresh tyres - about £1500. He likes it, and he's had a Monaro, M3s, Imprezas, Audis and Golf GTIs...
If you want a fast cheapy, a Toyota Corolla Tsport has the same engine that Lotus use in the Elise - a screaming 190bhp - in a boring looking hatchback that will surprise a lot of other road users...Under £1500 will buy a good one.
There are lots of rewards to be had from cheaper cars...remember that most of today's £10,000 hot hatches might only be worth £2000 to £3000 in 3 or 4 years time. That's a lot of cheapies that you could have bought, thrashed and thrown away without tears! Check it out for yourself: look at a £10k car advert, then look at adverts for equivalent cars by the same manufacturer of 3 or 4 years older. It's quite an eye opener!
My cousin has just realised that he has lost about £20,000 in depreciation in his 4 years of Vauxhall Insignia...actually, that makes them a really cheap used family car!
Only thing is trying to find a non rusty MX-5 at £1500.... have been trying, and failing! If you want a reliable fun car car that won't cost a fortune for your to buy/maintain/insure, the Suzuki Swift Sport suggestion above is hard to beat.
I think I'd be looking for the least rusty MX5 for about £1500. Really tough, rewarding to drive and cheap to fix if it breaks. They rot badly though, so you need to find one that has been cared for and preferably garaged. My bro bought one recently - it still had the bowls club car park stickers in the window! 2005, 1.8, 50,000 miles with full service history, lsd, and fresh tyres - about £1500. He likes it, and he's had a Monaro, M3s, Imprezas, Audis and Golf GTIs...
If you want a fast cheapy, a Toyota Corolla Tsport has the same engine that Lotus use in the Elise - a screaming 190bhp - in a boring looking hatchback that will surprise a lot of other road users...Under £1500 will buy a good one.
There are lots of rewards to be had from cheaper cars...remember that most of today's £10,000 hot hatches might only be worth £2000 to £3000 in 3 or 4 years time. That's a lot of cheapies that you could have bought, thrashed and thrown away without tears! Check it out for yourself: look at a £10k car advert, then look at adverts for equivalent cars by the same manufacturer of 3 or 4 years older. It's quite an eye opener!
My cousin has just realised that he has lost about £20,000 in depreciation in his 4 years of Vauxhall Insignia...actually, that makes them a really cheap used family car!
Integroo said:
Only thing is trying to find a non rusty MX-5 at £1500.... have been trying, and failing!
Agreed, and those that look tidy are often puffed up old wrecks. I bought a pair of MK1s, one tidy, but smoking badly and one matt black and dented, but mechanically good...I just have yet to amalgamate the pair!There are tidy MK2 s around, but they rot worse than the MK1s. Ideally, you also want LSD and ABS.
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