Bigger deposit / finance worth it?

[vtecyo]

Hi all,

Cash budget for buying a new car is around 8k which is a bit of a funny budget on the used market at the moment. 12-13k gets you something much more interesting - a GT86 for example.

Would it be worth putting down a larger deposit and getting the car through finance rather than taking a loan out and buying it outright? Is there any extra protection you get? Last time I bought a Megane 265 cup I went the loan route, but just wondering if there's a "better" way of doing it. I can get a 5k loan over a couple of years at about 3%. I paid the last one off early as I don't really like owing money - can you do early payments on finance or do they shaft you for it?

I do like some curveball sggestions, so criteria / shortlist for car options are:

Under 70k miles, ideally under 60k
Fun to drive on A and B roads without losing license / worse. Possible track days but not a priority.
Nice looking (subjective but still)
Reasonable on the motorway for comfort and mpg
Reliable (pre '11 VAG group TFSI engines make me nervous)
Under £300 to tax
Reasonable parts / servicing costs
Able to get a bike in / on it
Able to get a wakeboard in it (takes out an annoyingly large number of cars)

Current shortlist:

GT86 - never even sat in one but that's another thread.
125i / 130i hatch / coupe M Sport
Focus ST, although the interior on the 08ish ones is a bit naff
S3

Sold my Megane 265 because I just didn't gel with it. Uncomfortable in cup guise (with 19s), and the 325bhp vpower map meant it was quite thirsty / expensive. Plus the interior was utterly depressing and dreary.

Edited by vtecyo on Thursday 25th April 15:51

[BDM]

What did you end up with?

[HustleRussell]

I’d hope that when you see the interest rates on used car finance packages across the board you’ll conclude that used car finance is sthouse and the loan is the sensible way.

£14k car? Stump up £7k, borrow £7k at not much more than 3%, keep a grand in pocket for comfort, crack on.

[vtecyo]

HustleRussell said:

I’d hope that when you see the interest rates on used car finance packages across the board you’ll conclude that used car finance is sthouse and the loan is the sensible way.

£14k car? Stump up £7k, borrow £7k at not much more than 3%, keep a grand in pocket for comfort, crack on.

Yes I have seen that on the whole finance APR is pretty terrible for the customer.

I can borrow at around 3% and have an 8k credit card at 0% with basically nothing on it, so a loan would be more sensible.

BDM said:

What did you end up with?

Nothing yet, not had the time to go and look at anything.

[D7PNY]

8k would get you an Alfa Giulietta Cloverleaf of certain age/mileage worth considering if looking at focus ST of 08 vintage?

I bought one to scratch the itch for popping back an forward to work and it's been great. Mine was £10,250 a year ago for 63 plate with one owner and 30k odd miles.

Lots around for less than that with more miles/older etc.