New car talk (finance) - worth it?

[Mattcheese31]

Put the money into a house instead, you'll save shiploads of money in the long term, having shorter term mortgage will save you 10's if thousands potentially x

[w3526602]

Hi,

Personal loan. If things go pear shaped, you can sell the car, keep the money, and just keep making the payments.

Hire Purchase. If you can't keep up the payments, you can't sell the car (unless its for enough to pay off the debt). If you don't keep up the payments they will snatch their car back, and hit you with everything they can. You won't get a mortgage.

However there is (was?) a "funk hole" if things get serious. There should be a clause on the HP agreement saying that if you have paid at least half the purchase price of the car (including the deposit) and the car is in good condition ... you can simply hand it back. Not a nice hit to take, but if push has come to shove, it might be the best option.

Let's hope it doesn't come to any of the above.

602[/u]

[silverzx]

Excellent use of underlining, bold and italic may I add. ^

[ginge191]

Some interesting points; but realistically, the argument of using the money "gained" in a property could be used to purchase a car, isn't reallly something anyone would do? Move house / remortgage to just buy a car?

Think what Niall says resonates most; being able to 'bin' a car and not have to worry about the money attached to it. That's kind of the way i buy my cars.

Hmm a very tricky decision

[Dum-Dum]

Being in the position to buy new I still didn't. I bought a 3 year old car for 11k on finance, it was 26.5k new. Volvos own finance was better than I could get a personal loan for, 5.5%. Total payable 13ishK over 4 years with no early repayment charges.

^^ Likewise I could happily buy new but won't for depreciation.

Look at even stuff that you'd think wouldn't depreciate badly and it does everything bar mini's and range rover evoques do really

You can get a top spec diesel hyundai i40 estate which was a £25k+ car new for £10k now only 3 years later, basically at the end of the 3 year servicing deal.



Also if have you considered that 5 years is a bloody long time to own a car. In 5 years time it is entirely possible that you could be married to someone (desperate enough to marry a ginger) with 2 kids and paying a mortgage. Will this lovely special edition still be a viable choice then?

[w3526602]

Excellent use of underlining, bold and italic may I add. ^

Hi,

Yeah, sorry about that. I intended just to underline the heading, then changed it, and things went pear shaped. Senior moment.

My philosophy with cars is to buy either something I can walk away from if it dies (don't even need to pull the tax disc now), or have somebody else responsible for keeping it going (7-year warrantee).

It probably is irrelevent in this case, as Ginge seems to have a good relationship with his dealer, but ... if you can contrive to pay even a fraction of the deposit by plastic,
the whole deal is protected by the Credit Card laws.

602

[Poodle]

Some interesting points; but realistically, the argument of using the money "gained" in a property could be used to purchase a car, isn't reallly something anyone would do? Move house / remortgage to just buy a car?

Think what Niall says resonates most; being able to 'bin' a car and not have to worry about the money attached to it. That's kind of the way i buy my cars.

Hmm a very tricky decision

Actually you quite often see people rewarding themselves with a new car upon discovering they have unexpected capital tied up in their mortgage, many remortgage periodically anyway if they don't want to get mugged. Realistically the argument that you'll never be able to buy a new car once you've bought a house is just as true as the reverse...

Anyway, if that's the way you buy cars, surely you should sink as little money into it as possible? Unless you genuinely don't care about "binning" £25,000 plus charges and interest, in which case drash on.

[Piggy]

Even consider waiting a year to buy this "amazing" car?!

It will be so much cheaper then and you will avoid the "new car tax"!

[Kezzieboy]

Somebody just tell us what the damn car is!!

[1616six]

I'm in a position to purchase a new car, brand spankers, 'rare' car, as in, only "1,000,000" for the UK market" rare.

Somebody just tell us what the damn car is!!

Limited edition 1.2 Corsa, in White.

[Matt-Rallye]

I'm in a position to purchase a new car, brand spankers, 'rare' car, as in, only "1,000,000" for the UK market" rare.

Somebody just tell us what the damn car is!!

Limited edition 1.2 Corsa, in White.

Repped

[Ruan]

He's pretty much given the game away in here, it hardly look the brains of Britain to figure than one out!

[Eeyore]

Ginge. I find you whole load more attractive with a gti6 or a dturbo... not some new fangled car.

[Piggy]

And dont let it be a 208gti

Its just not as good as all the hype.

And such a girls car!!!

[Toms306]

Don't think it matters what the car choice is as cars are personal preference. Not that I'd want the particular car in question tbf.

Plus if its so rare, its unlikely he'll be able to buy one used next year.

Look at even stuff that you'd think wouldn't depreciate badly and it does everything bar mini's and range rover evoques do really

You can get a top spec diesel hyundai i40 estate which was a £25k+ car new for £10k now only 3 years later, basically at the end of the 3 year servicing deal.

You're looking at the wrong cars...

Buy something cheap, shit, powerless and petrol for ~£6k new and it'll barely depreciate at all for the first few years!

[Poodle]

Tom's on the money tbh, buy a new ka and i guarantee you'll be able to sell it in ten years to some college girl's devoted dad for 2.5k, despite it having rusted out through all four arches and having never been serviced.

[Toms306]

Was thinking more the Aygo/107/C1 tbh... I was warned on their forums last year that approved used ones 2/3 years old often went for more than they were bought for new!

People want cheap to run and maintain, diesels are too 'delicate' and people are scared of DPFs, any petrol over 1.2 is too thirsty and too much to tax. 1.0 shitboxes hold much more value (percentage-wise) as daft as it seems.

Something like an EcoBoost Fiesta should be a low depreciator without having to sacrifice everything but I get the feeling so many people are buying them atm that they won't hold value well in a few years.

[ginge191]

The car was/is the 208gti 30th year anniversary limited edition - 208gti plus some more unique extras

I'll be letting him know tomorrow my decision on this car, i very much doubt, you'd be able to get this car 'second hand', at all...

[Matt-Rallye]

Make sure your entirely happy with the car but if it was me and i had the spare income i would definitely get one of those

[1616six]

You only live once.. Do it! You'll regret it if you don't...

[nominous]

My reasoning for this is that i have never borrowed money in my life which although morally correct, doesnt stand me in a good credit rating for in a few years when i want to buy a house and obtain a mortgage.

Don't worry about it.
I got my mortgage 5 years ago this month.
Having literally never had a loan.
Always paid off credit cards on time, had a mobile phone since forever.
Lack of other loans was not a problem. 25% deposit.

On topic:
I'm also firmly in the new cars are a waste of money camp.
Even just let 12 months go by and you'd save massively in depreciation.
£22K for a new car. Go look at the amount of car 50% of that will get you and get a warranty deal if worried.
Buying a car for sub 500quid and keeping it going for pennies is a big two fingers to the sheeple that think "aw, can't afford a new car" and pay halfords to change a lightbulb.
Have also been in the "save up to buy it" not the "must have now" camp.
Consequently you have a nice level of monthly savings, so when you see a bargain you can go buy it. Not worry about how to finance it and miss out.


I'd agree with the buy a house point too. I played the waiting game for the bubble to burst, it didn't the govt propped everyone up and shmucks like I who had saved hard got the big shaft when the prices didn't drop.
It's rinse and repeat time right now.

[welshpug]

hope they've fixed the timing chain and tensioner issues these have.

[silverzx]

Surely some fool who can't afford one is going to buy it and they'll be a few cropping up in a year or so when they can't afford the payments and have to hand it back.

Then you make your move.

[Eeyore]

^^ Makes sense. There will always be some around and can only be less than what you will be paying now!

Look at the kind of cars you can get for 10k! Evo 9s, 350zs, subarus Stis, Skylines, big supras. Its an easy decision is it not?

[RetroPug]

You only live once.. Do it! You'll regret it if you don't...

As I only live once I would prefer to be wealthy and not have money troubles for the entirety of my life rather than getting into serious debt for depreciating assets!

Is a special edition hot hatch really worth that?

[Dum-Dum]

IMO if its the 208 GTi 30th Anniversary edition I'd go for it, they are far more awesome than having a house. Just get one with a tow bar and if the worst comes to it you can get a caravan.

[r3k1355]

or save up some more and get something decent??

It's not a groundbreaking car, it's just a 208 Gti, it's a decent enough little hot hatch but still living in the shadow of the kinda stuff Ford is putting out at the moment.

People rant and rave about how good the Ford ST and Fiesta ST are to drive, you don't hear the same kinda praise from the Peugeot owners.

[Toms306]

You can live in a car...you can't drive a house.


I agree though, would be a fiesta st 3 over a special edition 208 for me! Ginge is entitled to his own opinion and preference though.

[nominous]

But you can live in a house and drive a 300quid car.
You can't live in a 300quid house.

[r3k1355]

Well you could, just not in this country.

Unless you're prepared to stretch the definition of 'house'
My friend has people live in a caravan in his garden, that only cost a ton.