Sod 5 years, he wants it over 2, 3 at the most, get it knocked in while he's still living free at home.
Just my 10p worth
Which "Hot Hatch"?
- Thread starter mdixson
- Start date
Sod 5 years, he wants it over 2, 3 at the most, get it knocked in while he's still living free at home.
Just my 10p worth
If the intention is to buy it over 2 years and have it paid off before trying to buy a house then I take it back - that's perfectly reasonable way to make a decent jump on the car ladder, but he needs to be planning for the duration of the finance.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Exactly this. If you are going to buy a higher value car you need to ensure that either:
a) The outstanding balance is always less than the value of the car. This provides a simple way out if your circumstances change, you find a house or whatever. Bingo - no more monthly payments and you'll probably end up with a lump some back as well
b) You earn so much money that the monthly payment is irrelevent
I do not support the idea that you must drive around in a Fiesta 1.1 whilst saving every penny towards a house. Life is for enjoying, after all. You work, you deserve to be able to spend your money on things you enjoy. BUT you can't be completely reckless and you do need to have some sort of plan for the future, even if you feel you want to live for 'now'.
Really, I mean really? Do you think that anyone is going to agree a mortgage with someone now for which the repayments represent 50% of their take home income?
Some people today with existing loans, even with low interest rates, might find themselves in this position. But a new customer? As much chance as a whelk in a supernova.
I could be wrong, not sure over how long the fella wants, that was just my 10p worth.
Make hay while the sun shines and he's living at home was what i was saying, get it paid then move onto the house buying plan.
This is what my son is doing, only he had a 0% loan off me to buy his car. He had a mad plan of buying new for about 3 mins....till i clipped him round the ear
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Right so current revised plan - go to bank tomorrow and ask about loan rates - then look for a used 10 plate car for around £18k max 
Thanks guys for the advise I can see this working out a lot better as you all said with regards to the house in a year or two's time.
Back to the cars the Scirocco seems to have the vote but mostly on looks - was hoping for some more hands on feedback re:all three cars
EDIT: Mortgage is not an issue as dad can broker mortgages at very good rates for family
Thanks guys for the advise I can see this working out a lot better as you all said with regards to the house in a year or two's time.
Back to the cars the Scirocco seems to have the vote but mostly on looks - was hoping for some more hands on feedback re:all three cars
EDIT: Mortgage is not an issue as dad can broker mortgages at very good rates for family
[QUOTE='[TW]Fox;16775925'I do not support the idea that you must drive around in a Fiesta 1.1 whilst saving every penny towards a house. Life is for enjoying, after all. You work, you deserve to be able to spend your money on things you enjoy. BUT you can't be completely reckless and you do need to have some sort of plan for the future, even if you feel you want to live for 'now'.[/QUOTE]
This. The trouble with extending yourself for one purchase is that the vast majority of people also then tend to over-extend for something else. The designer sunglasses to go with that new car you bought, and then the £400 ripped jeans, and then going out to eat down the quayside a couple of times a week to 'show the car off'.
Balance.
This. The trouble with extending yourself for one purchase is that the vast majority of people also then tend to over-extend for something else. The designer sunglasses to go with that new car you bought, and then the £400 ripped jeans, and then going out to eat down the quayside a couple of times a week to 'show the car off'.
Balance.
Not knowing his position, and not really being that bothered about finding out I can't comment. It's more likely to be closer to 1/4 but it's going to fall in that rough ballpark.
1/4 - 1/3 may have been more accurate, but it really doesnt change the point I was making
This is not meJust like the "idea" of a new car, can see the error now
We all do. But it's about whats realistic - and I dont mean being super boring and super conservative. Nobody has yet suggested you go away and spend £4k on a Ford Focus diesel. You want a hot hatch, great, absolutely get one. I wouldn't be seen dead with less than 200bhp at 23
I like the idea of a new car. I really want a new E92 M3 or a new 335i M Sport to my exact spec, I could finally have that rare interior combo nobody ever specs. I love them. I could rush down to BMW tommorrow and take out finance on one for delivery in a few months time. Great! I could afford to do that! Brilliant! But then I'd have about 20p left over to live the rest of my life and I'd be a slave to my brand new car. Suddenly its not quite so appealing, despite being affordable on paper.
But yet whats this? The same car only 3 years old? Wow, now its actually affordable... etc etc.
[TW]Fox;16775994 said:We all do. But it's about whats realistic - and I dont mean being super boring and super conservative. Nobody has yet suggested you go away and spend £4k on a Ford Focus diesel. You want a hot hatch, great, absolutely get one. I wouldn't be seen dead with less than 200bhp at 23
I like the idea of a new car. I really want a new E92 M3 or a new 335i M Sport to my exact spec, I could finally have that rare interior combo nobody ever specs. I love them. I could rush down to BMW tommorrow and take out finance on one for delivery in a few months time. Great! I could afford to do that! Brilliant! But then I'd have about 20p left over to live the rest of my life and I'd be a slave to my brand new car. Suddenly its not quite so appealing, despite being affordable on paper.
But yet whats this? The same car only 3 years old? Wow, now its actually affordable... etc etc.
I must say you get a fair amount of flack but you are normally 100% on the money. You don't beat around the bush you just tell it as it is.
So what kind of interest rates can I expect at the banks then? 9.5%ish ??? If this is the case I can still see an £18k car costing me more per-month - should I look at a longer time frame in this case?
@Fox this is also a slight "Keeping up with the Joneses" as a few mates have these sorts of car already - we go for weekend drives a lot
@Fox this is also a slight "Keeping up with the Joneses" as a few mates have these sorts of car already - we go for weekend drives a lot
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Thats because you are now financing the entire value of the car with a bank loan, whereas presumably the other packages you were looking at were either a PCP/Lease - where you dont actually own the car you merely hire it and give it back after 3 years - or it had a balloon, where there is a 'final value' to pay. IE you buy a 20k car with a 8k 'optional final payment'. They are actually lending you 12k - if you want to keep the car after the 3 years you must pay them that £8k as well.
Whichever way you look at it, borrowing £18,000 over 3 years is going to cost you over £500 a month. But once you've paid that and the 3 years is up you've got.. a car. Its yours. It's probably worth £10k or so.... thats your £10k now. You can do what you want with it.
Any monthly cost of less than this will have lots of catches. Usually the ones listed above - or the fact you never own the car.
I had a real feeling of that. Was a dude a few weeks back who wanted to spend 50k and had no idea what car he wanted. He just wanted to have a flash car as his mates had one.
They might look cool now but you will be laughing when you have more spare cash 2 years on and you haven't taken a MASSIVE hit on the price when selling
As Mark said, look at the timescale you want to be moving out in. Then look at what you can afford to pay in that time and set the budget from there - work backwards rather than deciding what you want to spend and doing whatever you can to make it work.
Regarding interest rates, it entirely depends on your circumstances, credit rating etc. Look at Zopa, quite a unique concept but very good loans generally. Very flexible and good rates
Regarding interest rates, it entirely depends on your circumstances, credit rating etc. Look at Zopa, quite a unique concept but very good loans generally. Very flexible and good rates