Buying an expensive car quesion
- Thread starter smokedog
- Start date
A bank loan will be the cheapest overall method. Check out www.moneysavingexpert.com for some tips on getting loans as well as a list of the cheapest loan providers.
Hire purchase is another option but interest rates are higher and you don't actually own the car until it's paid in full.
Hire purchase is another option but interest rates are higher and you don't actually own the car until it's paid in full.
Caporegime
If you are serious, I would also recommend the bank loan route, most likely cheaper than similar car finance deals, and most likely NOT secured on the car itself, plus the added bonus that there is no finance outstanding on the car if you need to sell it.
However, do think long and hard about if you can actually afford your £400 a month + running costs + service costs + insurance + possible expenditure that you didn't count on.
However, do think long and hard about if you can actually afford your £400 a month + running costs + service costs + insurance + possible expenditure that you didn't count on.
Man of Honour
Find a company that uses them as company cars and get a job there. 
or
buy a crash damaged one.
or buy a crash damaged one.
Soldato
Sagalout said:
Thats rubbish
You DONT need any deposit for car finance.
Is it a new or a used car that you want to buy?
£400 a month will buy you about £20,000
But £400 can also buy you a lot more if its a new car.
Soldato
sounds familiar
Natwest 23k over 6 years 6.9% £388.63 a month, total repayable £27,981.36.
Direct line do 5.8 or .9 but they seem tough cookies to get large loans from.
I know lots of people advise against loan for cars but if you buy something like a second hand M3 for example
the payments on the loan will exceed the depretiation on the car as it has already lost the major part of its value.
I view it more as a lease as like my last car after a while I might sell it clear the loan with the proceeds take out another loan for a new car. Gives you a top credit rating and is pretty safe way of doing it.
As it is a personnel loan the car remains yours and HPI clear so you can sell it.
You need to be carefull what you buy as purchasing something new wont work as they depretiate like a stone so you will be in negative equaty. Same goes with less disireable and non "classic" cars
Think carefull ensure you can truely afford it AND the associated running costs of a 20k car.
What you thinking of getting?
Natwest 23k over 6 years 6.9% £388.63 a month, total repayable £27,981.36.
Direct line do 5.8 or .9 but they seem tough cookies to get large loans from.
I know lots of people advise against loan for cars but if you buy something like a second hand M3 for example
the payments on the loan will exceed the depretiation on the car as it has already lost the major part of its value. I view it more as a lease as like my last car after a while I might sell it clear the loan with the proceeds take out another loan for a new car. Gives you a top credit rating and is pretty safe way of doing it.
As it is a personnel loan the car remains yours and HPI clear so you can sell it.
You need to be carefull what you buy as purchasing something new wont work as they depretiate like a stone so you will be in negative equaty. Same goes with less disireable and non "classic" cars
Think carefull ensure you can truely afford it AND the associated running costs of a 20k car.
What you thinking of getting?
Soldato
Don't take a loan out for a car more than 5 years, your just asking for trouble unless its depreciation proof!
Soldato
a 5 year old car worth 20k will have lost most of its value already and will be somthing special M3 older Porker etc which will hold its value higher than the outstanding amount of the loan through time.
Buying a newer car with the money is far more unwise. go buy a new Mondy st220 and see what happens in a few years!!
As I aid above you need to be VERY carefull what car you buy
I am infact struggling to think what cars I would consider a "safe" bet
M3
M5
911 (older one)
Searching for ideas for 20k cars on Autotrader only brings up new cars which deprtiate too much
Buying a newer car with the money is far more unwise. go buy a new Mondy st220 and see what happens in a few years!!
As I aid above you need to be VERY carefull what car you buy
I am infact struggling to think what cars I would consider a "safe" bet
M3
M5
911 (older one)
Searching for ideas for 20k cars on Autotrader only brings up new cars which deprtiate too much
Caporegime
I think maz meant do not take out a 5 year loan, not don't buy a car older than 5 years.
Soldato
lol ahh that might do it
20k over 3 years is gonna be a hit each month!!!
20k over 3 years is gonna be a hit each month!!!
Id say bank loan route and you are looking at about 6.1%, thats what i have just done through direct line. I would try and buy as new as possible (not brand new though). And I would also say no longer than 5 years for the finance, i know lots of people slate loans and you have to make sure you can afford all the rest that goes with the car but how else are people supposed to buy more expensive cars. You could save but saving 20k is likely gonna take not far off what the loan term would be anyway minus say 1 year.
Work out how much the car will be worth in say 3 years and how much would be left on the loan then you can see how badly you are going to be in negative finance. Its expected that you will anyway but you dont want to be thousands out or that will have to go onto your next car.
Work out how much the car will be worth in say 3 years and how much would be left on the loan then you can see how badly you are going to be in negative finance. Its expected that you will anyway but you dont want to be thousands out or that will have to go onto your next car.
I always see people say don't take out a +4 year loan but I don't see an issue, as long as the monthly repayments are greater the the car depreciates then when you get bored sell the car, pay off loan, and start again with a new loan and car....This does assume there is no huge early repayment penalty.
I would go the personal loan route, try northern rock or cahoot, they usually offer large personal loans at good rates ~5.8%
I would go the personal loan route, try northern rock or cahoot, they usually offer large personal loans at good rates ~5.8%
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Bigsy said:
I agree, its all about being sensible and thinking it through. Whats it gonna be worth in 4 years, then look at what you will owe. I have just done it and worked it all out and can comftorbaly afford it so I think its fine.
One thing i would say is dont take garage finance on the car as its much harder to sell it as if you try and sell it privately it will have finance against the car and its a right pain. Best to take a personal loan out.
