Best way to finance £4k car purchase
Discussion
Yes yes, I know PH... Work hard and save up 
That aside, I am in the throes of a house purchase, due to complete this month so all spare cash is earmarked for that. This is when the car has decided to go pop.
I’m picking up a replacement on Thursday. Bank of mum is temporarily financing the 4K but I need something (slightly) longer term.
I was expecting to spend about £7k so was eyeing up First Direct personal loans... I’m a customer so 7.5k and over is 3.3%.
I can probably clear this fairly quickly with a bit of overtime, likely within 6 months, but is it, for instance, possible to take out a FD loan for 7.5k and instantly pay half of it back?!
Ideas on a postcard. Credit card not an option as seller is private.
That aside, I am in the throes of a house purchase, due to complete this month so all spare cash is earmarked for that. This is when the car has decided to go pop.
I’m picking up a replacement on Thursday. Bank of mum is temporarily financing the 4K but I need something (slightly) longer term.
I was expecting to spend about £7k so was eyeing up First Direct personal loans... I’m a customer so 7.5k and over is 3.3%.
I can probably clear this fairly quickly with a bit of overtime, likely within 6 months, but is it, for instance, possible to take out a FD loan for 7.5k and instantly pay half of it back?!
Ideas on a postcard. Credit card not an option as seller is private.
I’d be very, very careful about taking out any new credit until your mortgage is all sorted. Do you actually need a car for a few weeks? Perhaps just rent one on the days you can’t do without?
After that you could take the loan and use the rest to overpay a bit of the mortgage and save interest in the long term. You can usually pay a certain percentage over without hitting fees. You do want a savings buffer though, for exactly this sort of situation!
Just some ideas, not advice.
After that you could take the loan and use the rest to overpay a bit of the mortgage and save interest in the long term. You can usually pay a certain percentage over without hitting fees. You do want a savings buffer though, for exactly this sort of situation!
Just some ideas, not advice.
Edited by colin79666 on Monday 28th September 20:58
Ring First Direct and ask them. Their telephone customer services team are excellent.
Mind you, as mentioned above, it's risky doing this when you're about to receive mortgage funds. You don't want to jeopardise the mortgage for the sake of a few weeks' wait.
carreauchompeur said:
Credit card not an option as seller is private.
You can pay an individual with Paypal and use a credit card to make the Paypal payment. The next trick is to transfer it to an interest free card. (Paying an individual rather than a business means that Paypal buyer protection won't be provided, so make sure you're happy making the payment in the first place.)Mind you, as mentioned above, it's risky doing this when you're about to receive mortgage funds. You don't want to jeopardise the mortgage for the sake of a few weeks' wait.
Edited by Bluesgirl on Monday 28th September 22:04
Thanks all... Unfortunately car isn't really optional since current one is hardly going (No boost at all) and work is 25 miles from home!
If the replacement car hadn't come up then I would have just bought a banger to tide me over, but this one is a great deal and what I was after anyway so it makes sense to go with it.
Luckily mum is helping me out in the meantime, definitely won't take out any new credit until house completes... I'll have a word with FD and see what they say though
If the replacement car hadn't come up then I would have just bought a banger to tide me over, but this one is a great deal and what I was after anyway so it makes sense to go with it.
Luckily mum is helping me out in the meantime, definitely won't take out any new credit until house completes... I'll have a word with FD and see what they say though
carreauchompeur said:
Thanks all... Unfortunately car isn't really optional since current one is hardly going (No boost at all) and work is 25 miles from home!
If the replacement car hadn't come up then I would have just bought a banger to tide me over, but this one is a great deal and what I was after anyway so it makes sense to go with it.
Luckily mum is helping me out in the meantime, definitely won't take out any new credit until house completes... I'll have a word with FD and see what they say though
I'm just reading excuses. If the replacement car hadn't come up then I would have just bought a banger to tide me over, but this one is a great deal and what I was after anyway so it makes sense to go with it.
Luckily mum is helping me out in the meantime, definitely won't take out any new credit until house completes... I'll have a word with FD and see what they say though
There are lots of perfectly good cars for sale that woukd do a 25 mile commute costing less than £1000. In my humble opinion if you are buying a house, you need a £7k buffer for all the s
t that's not been spotted on the survey, and not £7k credit/loan.Don't do it. Don't buy it. Stop using your mum as a buffer. Note I say this as someone a who h as borrowed money off my parents, some years ago now and then regretted the 'hold' it had over me.
carreauchompeur said:
Yes yes, I know PH... Work hard and save up
.
You clearly don't know PH at all... the overwhelming consensus from all the sad, inadequate debt junkies on here wanting to be seen driving around in flash cars they can't afford to buy is far more likely to be the exact opposite of that..
At least your reasons for wanting to take on debt to buy a car are more valid than most PH'ers
Pit Pony said:
mike74 said:
At least your reasons for wanting to take on debt to buy a car are more valid than most PH'ers
I don't agree. He needs something realiable for a 25 mile commute. Decent Mk4 or 5 Astra 1.4 low miles can be had for £500 to £1000.
I more meant that his reasons are more valid (current dead car, needs something ASAP) than simply wanting to take on debt to be seen driving around in something flashy that he can't afford to buy with cash like your typical PHer.
Pit Pony said:
I'm just reading excuses.
There are lots of perfectly good cars for sale that woukd do a 25 mile commute costing less than £1000. In my humble opinion if you are buying a house, you need a £7k buffer for all the st that's not been spotted on the survey, and not £7k credit/loan..
Fully agree, now is the worst time to be splashing out on a car! There are lots of perfectly good cars for sale that woukd do a 25 mile commute costing less than £1000. In my humble opinion if you are buying a house, you need a £7k buffer for all the s
t that's not been spotted on the survey, and not £7k credit/loan.. 
It's madness, especially as moving costs, new furniture, the surprises when you turn up & find things off, right as winter arrives...... When we did our last house purchase 5 years ago we happened to need a car just before the sale went through. Similar circumstances.
I purchased a 2005 saab 93 aero for £1300 with the intention of keeping it 6 months until we’d moved and settled. Ended up keeping it 3 years and loved a bit of shed ownership.
It was totally reliable, a hoot to drive, we covered many miles in it and it was also perfect for tip and IKEA runs.
Find a good shed, like a mondeo or something. Last thing you should be doing is getting more debt. You’ll need that credit when your boiler packs up or the missus wants a new kitchen.
I purchased a 2005 saab 93 aero for £1300 with the intention of keeping it 6 months until we’d moved and settled. Ended up keeping it 3 years and loved a bit of shed ownership.
It was totally reliable, a hoot to drive, we covered many miles in it and it was also perfect for tip and IKEA runs.
Find a good shed, like a mondeo or something. Last thing you should be doing is getting more debt. You’ll need that credit when your boiler packs up or the missus wants a new kitchen.
I’ve got a 2004 polo tdi shed I’ve just got a full 12 month MOT on yesterday. I used it for a commute from Oswestry to Birmingham, 104 miles a day so is totally reliable. I’m not using it currently and have become rather attached to it and would like to see it hit 200,000 miles, it’s 175k currently. You’re welcome to borrow it until after your house move if you like?
As long as you’re going to be able to meet the mortgage and loan payments I’d personally go with that once the house has gone through.
Whilst borrowings cheap, keep the extra 3.5k as a buffer until you have your own 3.5k buffer and then repay in full.
People get their knickers in a twist about finance/borrowing/debt, but you’re looking at a 4K car, not a 4K deposit on a 40k car... this isn’t really a big deal. The key is knowing you can comfortably make the payments!
Whilst borrowings cheap, keep the extra 3.5k as a buffer until you have your own 3.5k buffer and then repay in full.
People get their knickers in a twist about finance/borrowing/debt, but you’re looking at a 4K car, not a 4K deposit on a 40k car... this isn’t really a big deal. The key is knowing you can comfortably make the payments!
https://www1.firstdirect.com/loans-and-cards/perso...
Yes you can pay overpayments on the loan, so it makes sense to take the higher amount for the cheaper rate and pay a chunk back to minimise interest. I *think* that the monthly amounts wont change so take that into consideration when calculating if it is the right approach.
croissant said:
When we did our last house purchase 5 years ago we happened to need a car just before the sale went through. Similar circumstances.
I purchased a 2005 saab 93 aero for £1300 with the intention of keeping it 6 months until we’d moved and settled. Ended up keeping it 3 years and loved a bit of shed ownership.
It was totally reliable, a hoot to drive, we covered many miles in it and it was also perfect for tip and IKEA runs.
Find a good shed, like a mondeo or something. Last thing you should be doing is getting more debt. You’ll need that credit when your boiler packs up or the missus wants a new kitchen.
Similar story here except it was £1500 on a Clio 182. Was only to be a stop-gap car and the bloody thing was loitering on the drive for years to come! In hindsight we saved a fortune in what would be "monthlies" on something newer for the sake of being new, even when factoring in the maintenance costs on the Clio.I purchased a 2005 saab 93 aero for £1300 with the intention of keeping it 6 months until we’d moved and settled. Ended up keeping it 3 years and loved a bit of shed ownership.
It was totally reliable, a hoot to drive, we covered many miles in it and it was also perfect for tip and IKEA runs.
Find a good shed, like a mondeo or something. Last thing you should be doing is getting more debt. You’ll need that credit when your boiler packs up or the missus wants a new kitchen.
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