Options to purchase a car?
Discussion
Hey guys I'm new to car buying. I am now getting in a position to purchase my first dream car. The car cost between £25-30k and I earn £4-6k a month.
My question is, should I just save up and buy the car outright or go a credit route? My score is 999 out of 999 (Experian) so I have this option.
What's everyone's thoughts? I'd love to know the most optimal route of purchasing what is in my eyes are a large deprecating asset, however as we all know.. we just love cars!
The car I want is a MB CLA45.
My question is, should I just save up and buy the car outright or go a credit route? My score is 999 out of 999 (Experian) so I have this option.
What's everyone's thoughts? I'd love to know the most optimal route of purchasing what is in my eyes are a large deprecating asset, however as we all know.. we just love cars!
The car I want is a MB CLA45.
For some balance, I have one vehicle on a PCP and another was bought with savings.
By some margin, the one that was saved-for is more satisfying and already been my longest owned. It was bought carefully and won't be sold for a long time, which makes it great value to me and my family.
The PCP'd car was bough during the last year and, thanks to a large deposit, costs a very modest amount every month. It seemed like a good alternative to continuing with the needy 12-year-old car I had at the time. I have no other debt and I didn't want to cash in savings held in equities the time (classic PH cliche!).
On the one hand, it won't be costing me any more than the older car on a month-by-month basis. However, buying the car in full this way would take a long time and I'm not sure it would be good value for the low mileage it does. So... I'm considering selling it and ending the PCP. This will give me some cash back to put towards another older car that I'd buy outright.
I think the priority is to be really sure that you want to spend £25-30k on any car. The way that you pay for it doesn't make a huge difference, but financing can really lure you into buying something excessive for your needs. Only you can say whether your decision is the right thing for you, but do weigh it up against other priorities like saving, pension, housing, holidays, experiences etc.
Obviously financing will allow you to have access to the car sooner. Saving up beforehand will take longer and, along the way, you may decide that you don't want to spend that much on a car.
By some margin, the one that was saved-for is more satisfying and already been my longest owned. It was bought carefully and won't be sold for a long time, which makes it great value to me and my family.
The PCP'd car was bough during the last year and, thanks to a large deposit, costs a very modest amount every month. It seemed like a good alternative to continuing with the needy 12-year-old car I had at the time. I have no other debt and I didn't want to cash in savings held in equities the time (classic PH cliche!).
On the one hand, it won't be costing me any more than the older car on a month-by-month basis. However, buying the car in full this way would take a long time and I'm not sure it would be good value for the low mileage it does. So... I'm considering selling it and ending the PCP. This will give me some cash back to put towards another older car that I'd buy outright.
I think the priority is to be really sure that you want to spend £25-30k on any car. The way that you pay for it doesn't make a huge difference, but financing can really lure you into buying something excessive for your needs. Only you can say whether your decision is the right thing for you, but do weigh it up against other priorities like saving, pension, housing, holidays, experiences etc.
Obviously financing will allow you to have access to the car sooner. Saving up beforehand will take longer and, along the way, you may decide that you don't want to spend that much on a car.
Take your time, find the right car for you. Do test drives, scour the market, make sure you know exactly what you're after. When you're ready to pull the trigger, you'll know which method to use. Personally, I prefer cash up front since it makes my monthly outgoings easier to manage. Just make sure you're ok for any unexpected expenses that might arise in life too.
You could finance the car and pay off larger chunks each month too. Gets you out of debt quickly and gives you access to the right car as soon as you see it.
You could finance the car and pay off larger chunks each month too. Gets you out of debt quickly and gives you access to the right car as soon as you see it.
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