Buying a car on finance

[shaun1e 10]

s6 motors at hillsborough

[truman 10]

i told him to just start off with a cheap car then as his finances get better he can get better cars.just like buying a house start on the bottom rung and work his way up.

 

How's that work..a car will be worth less in 2 year's time than it is now..how do you work your way up..you've lost money..?

[shaun1e 10]

no i would keep well away from finance

[CaptainChaos 10]

but my mate doesnt have a deposit thats why he wanted finance

 

 

In that case 'your mate' is going to struggle.

 

Look at it this way.

 

He/She is already blacklisted, displaying a high risk of not apying the loan back. I cant think of anywhere that would willingly finance a toxic debt. The deposit is there to ensure 'your mate' keeps paying. Who would default on a loan if they already have a couple of grand in it themselves which will be lost.

 

Bawtry auctions on monday night is probably his best bet.

[jenand8285 10]

Tell him to buy a bike or a banger as he cant afford a car,he will end up in debt for next 10 years, whats the point in showing of in a car he cant ill afford:loopy:

If he cant afford a deposit how will he keep up with running cost

 

'your mate' doesnt sound intelligent enough to understand

 

Buying a car on finance is not always the best option, but it can be a solution.

Buying a 'banger' is not a good financial option either. Of course there is exceptions, but buying a car under £500 is probably not going to get through the next MOT test without having to spend cash doing so. 'Bangers' tend to break down much more frequently than say a £3k 5 year old car. Does the mate want the hassel, embarressment & tardiness of an unreliable car?? I assume not!

 

By borrowing around £3K the person could expect repayments of around £120 pcm for the next three years, with a total repayment of approx £4300.00.

 

So it will cost him/ her around £1440 per annum to buy a 'decent' car that is much more reliable & less likely to break down. If he/ she is sensible they could look for a economical car with low tax. Opposed to the bangers that have higher tax, could possibly save approx £220 per year. Insurance is also likely to be better value.

 

There is some advantage to taking out car finance (other than just showing off), hence why a large percentage of motorist choose to do it. As long as the person does not take out more than they can afford to repay and do not buy something they can not afford to insure/ fill up & repair.

 

I would suggest a mk6 fiesta in the 3k bracket, cheap running costs & reliable!

Edited September 7, 2011 by jenand8285

[GrannyGranny 10]

If he hasn't any deposit it probably means he spends as much as he earns each month and has zero savings so how is he planning to make the payments each month?

 

TBH it sounds like he is the type of customer that places like Carcraft love.

 

Taking out the whole cost of the already overpriced car on hugely inflated finance rates over the max. period to minimise the monthly payments.

[truman 10]

If he hasn't any deposit it probably means he spends as much as he earns each month and has zero savings so how is he planning to make the payments each month?

 

TBH it sounds like he is the type of customer that places like Carcraft love.

 

Taking out the whole cost of the already overpriced car on hugely inflated finance rates over the max. period to minimise the monthly payments.

 

Yep,you buy money there and get a free car thrown in...