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WorkingForTheMan

Car Finance

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My car just got written off. Realistically going to get about 1.5k for it. I've always run old bangers (less than £800), so this was the first I had that was semi-decent, and besides servicing I didnt spend any money on it. My old bangers always ended up costing me loads on repairs before exploding randomly, so I'm reluctant to go back down that route.

My question is, should I consider using my 1.5k as a deposit and getting a new(ish) car on finance, or should I save a bit and spend a couple of grand on a car thats a few years old? Looking around I can probably get a decent car on finance for £200 ish a month over 2 or 3 years, but being debt averse I am reluctant. I dont have a great deal of disposable income, so I would be stretched if I did this, and also tied into a car for 2 or 3 years which i'm not sure about

What does the HPC crowd think?

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My car just got written off. Realistically going to get about 1.5k for it. I've always run old bangers (less than £800), so this was the first I had that was semi-decent, and besides servicing I didnt spend any money on it. My old bangers always ended up costing me loads on repairs before exploding randomly, so I'm reluctant to go back down that route.

My question is, should I consider using my 1.5k as a deposit and getting a new(ish) car on finance, or should I save a bit and spend a couple of grand on a car thats a few years old? Looking around I can probably get a decent car on finance for £200 ish a month over 2 or 3 years, but being debt averse I am reluctant. I dont have a great deal of disposable income, so I would be stretched if I did this, and also tied into a car for 2 or 3 years which i'm not sure about

What does the HPC crowd think?

i) Don't accept first offer from the insurance company get comparables for the car you had in the same condition, you are looking for a lke for like realistic replacement cost, not the first low ball offer. Kepp all receipts have them handy to prove you had kept the car in good nick.

ii) Finance - somebody somewhere down the line is making money from the deal, got to mean less car for the money - exception may be new lease - manufacturers seem to play all sorts of games with pricing there.

iii) If you are going to be stretched to do the finance, don't do it. Can you buy yourself some time (and extra money for the pot) ? £2K and a bit might get you soemthing pretty decent.

What about auctions? If you buy all good - mechnically they are being sold as sound. Some good deals are possible - some off the wall autciotn houses, insolvency autions sometimes have the best deals.

Need to fully check buyer's premiums and VAT though.

http://www.bidspotter.co.uk/forms/TimedAuctionList.php?eventid=511

Edit - another - british bookshops auction

http://www.bidspotter.co.uk/forms/TimedAuctionList.php?eventid=536&page=10&totalpages=11&totalrecords=208&ExRate=&refreshTime=0

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You could go back to Bangernomics, you'll save a fortune on depreciation. Maybe your lack of success in the past can be backed up by some form of inspection first?

The reliability surveys always seem to show that the japanese cars are reliable and my Mazda and my wife's recently sold Toyota have never gone wrong. Though I hear the parts are more expensive but that's probably because they've been designed and manufactured to a higher quality so they last.

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I tried it and have mixed feelings. If you hand the car back at the end of the lease and there is any damage you may get a nasty shock when they hand you a bill - there is a code of conduct for fair 'wear and tear' and it's quite an eye opener, anything over 2.5cm scratch, blemishes etc not much tolerance if you want to use your vehicle without having to wear kindergloves. If you don't hand it back you either pay a balloon payment of thousands or take out a new lease agreement on a new car rinse and repeat.

I had a Citroen C1 (lemon of a car) and faults were on the horizon and I was merrily speeding towards them at 56mph, not getting anywhere close to the claimed MPG. There are known clutch problems after 12k miles and Citroen aren't honouring the 3 year warranty citing driver factors and charging £500 a time. I was lucky I got out of the 3 year lease early with 12,750miles on the clock.

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I had a Citroen C1 (lemon of a car) and faults were on the horizon and I was merrily speeding towards them at 56mph, not getting anywhere close to the claimed MPG. There are known clutch problems after 12k miles and Citroen aren't honouring the 3 year warranty citing driver factors and charging £500 a time. I was lucky I got out of the 3 year lease early with 12,750miles on the clock.

Watch out for the water pump failures on the C1. Mine went after 25k miles and 3 1/2 years. £260 to fix. Shocking!

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Anyone blowing money on a loan for a "newish" car nowadays, probably has better uses for that money!

I broke my own rules and my current one cost over £2k, but it's nice and works well! ;)

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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