Help with finance needed

Help with finance needed

Author
Discussion

Gring

Original Poster:

1,594 posts

206 months

Wednesday 8th July 2009
quotequote all
I want to buy a used car (2004) that is going to cost in the region of £55k.
I am thinking about possibly having a small balloon payment at the end, maybe 15 or 20%. I understand that I will need to pay a 10% deposit.

Do any of you know what kind of rates I am likely to get at the moment, plus what kind of repayments would I be paying over 5 years.

Thanks in advance

Peter


Dave_ST220

10,298 posts

206 months

Wednesday 8th July 2009
quotequote all
Your going to buy a £55K car on finance, are you mad?!

Steve748

8,542 posts

185 months

Wednesday 8th July 2009
quotequote all
Your going to buy a £55K car on finance? ......they saw you coming!

Gring

Original Poster:

1,594 posts

206 months

Wednesday 8th July 2009
quotequote all
I wasnt actually asking for advice on my sanity, but thanks anyway.


I havent even found the right car yet, I am just after information at this stage.

Dave_ST220

10,298 posts

206 months

Wednesday 8th July 2009
quotequote all
I would think long & hard about this, if you can't afford to buy a £55k car outright then don't even think about it IMO! Running costs, servicing etc are likely to cost a packet on a motor costing that much. A bank loan would make more sense if you want to keep it,that is a massive wedge to spend on a 5 year old car IMO. What car are we talking about?

Gring

Original Poster:

1,594 posts

206 months

Wednesday 8th July 2009
quotequote all
Dave_ST220 said:
I would think long & hard about this, if you can't afford to buy a £55k car outright then don't even think about it IMO! Running costs, servicing etc are likely to cost a packet on a motor costing that much. A bank loan would make more sense if you want to keep it,that is a massive wedge to spend on a 5 year old car IMO. What car are we talking about?
I am interested in getting a Gallardo, running costs arnt really a huge amount more than my current car, I am used to 12mpg and less, expensive services etc. I think depreciation is not going to be a major killer at the price I would be going in at. In 5 years time, I cant really see Gallardo's dropping in value massively, worst case £35k perhaps, but who knows. If I get one and keep it for the full 5 years, it will not have cost me a massive amount.


I could if I really wanted, buy one outright, even a new one, but that would involve removing the cash from elsewhere, and I dont want to have to do that. So finance doesnt seem such a bad idea to me.



Edited by Gring on Wednesday 8th July 14:44

Dave_ST220

10,298 posts

206 months

Wednesday 8th July 2009
quotequote all

Sideways Tim

887 posts

187 months

Wednesday 8th July 2009
quotequote all
Ignore all the nay-sayers and if you want to do it, and in the worst case could clear the debt from personal assets, then go for it.

With a balloon and a 10% deposit, you'd be looking for an apr of less than 7% with repayments in the £800pm region.

That's back of a fag packet calculations, but it'll be near enough.

Gring

Original Poster:

1,594 posts

206 months

Wednesday 8th July 2009
quotequote all
Sideways Tim said:
Ignore all the nay-sayers and if you want to do it, and in the worst case could clear the debt from personal assets, then go for it.

With a balloon and a 10% deposit, you'd be looking for an apr of less than 7% with repayments in the £800pm region.

That's back of a fag packet calculations, but it'll be near enough.
Thanks alot for that Tim,

I have been getting all kinds of quotes based on £60k, the latest:>

(Working on APR of 9.5%/Flat rate 4.9%.

With a 30% balloon (£18,000), then the monthly payments would be approximately 48 x £1,035 monthly.

Cannot offer 5 years and a balloon. Only 4 years and a balloon.)

Seems quite a high APR, my current APR with Santandar is 8%, where am I likeley to get 7%?

I dont really want to be paying over £1k a month, the less the better.

I could draw some money from a buy to let we have, but really dont want to do that.

flyingjase

3,067 posts

232 months

Wednesday 8th July 2009
quotequote all
Have you tried Oracle finance? They seem to advertise as being a niche lender for high end cars. I see them in teh Sunday Times every week talking about 6-7% APR.

Ignore what others are saying, I bought a car off a premiership footballer in Jan and when I HPI'd it, he had finance! And that was a guy that earns £25k per week, so it seems there are situations where you should use finance.

Good luck with Gallardo - very sexy car and may but one myself next year.

Gring

Original Poster:

1,594 posts

206 months

Wednesday 8th July 2009
quotequote all
flyingjase said:
Have you tried Oracle finance? They seem to advertise as being a niche lender for high end cars. I see them in teh Sunday Times every week talking about 6-7% APR.

Ignore what others are saying, I bought a car off a premiership footballer in Jan and when I HPI'd it, he had finance! And that was a guy that earns £25k per week, so it seems there are situations where you should use finance.

Good luck with Gallardo - very sexy car and may but one myself next year.
Hi Jase, yes I have tried Oracle, quoting slightly less but on 8%.

I just think finance in some situations makes sense, £900 a month in repayments is a fair amount but it's not a huge % of income. Sometimes you have got to do these things, even if they are a stretch. I dont want to wait until I am old before I get an extra special car. I want one now. Even if I cant afford to put petrol in it!

flyingjase

3,067 posts

232 months

Wednesday 8th July 2009
quotequote all
Gring said:
flyingjase said:
Have you tried Oracle finance? They seem to advertise as being a niche lender for high end cars. I see them in teh Sunday Times every week talking about 6-7% APR.

Ignore what others are saying, I bought a car off a premiership footballer in Jan and when I HPI'd it, he had finance! And that was a guy that earns £25k per week, so it seems there are situations where you should use finance.

Good luck with Gallardo - very sexy car and may but one myself next year.
Hi Jase, yes I have tried Oracle, quoting slightly less but on 8%.

I just think finance in some situations makes sense, £900 a month in repayments is a fair amount but it's not a huge % of income. Sometimes you have got to do these things, even if they are a stretch. I dont want to wait until I am old before I get an extra special car. I want one now. Even if I cant afford to put petrol in it!
Agreed - I used to have TVR's and no car on this planet can more expensive than that to run. One year it cost me £9k! The cheapest service I ever had was a £1k

When my Alfa goes back next year at the end of it's 2 year lese, I was thinking £80k budget for a Gallardo Spider or F430 Spider, £30k deposit and £50k over 36 months = £1550 per month and a car that's still worth the best part of £50k with no finance after 36 months.

Again I could pay for it cash, however I'm also saving for some serious renovations on my house, so to do both I need to borrow. Ok sensible option is do house, save again and then buy car cash but then I could die tomorrow! Payments would be a small % of overall net monthly income, so I dont see the issue.