Buying new car
fevmeister
Posts: 353
I'm after some quick advice on getting car finance. Will be buying privately so would need a car loan I assume? Would there be any problems seen as I'm 22 and have no credit score (Never had finance before, or been late in paying any bills!). Never been in this position so after some advice what to do!
Many thanks
Many thanks
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Apply for a Credit card, make on time payments above the minimum repayments on it.
Or if you have it put a minimum deposit of 30% into the car finance deal.0 -
I'd be buying privately off auto trader so there is no car finance option, I assume my only option is car loan from bank? Car is a nearly new golf0
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Buying privately so you will need to get a bank loan.
You will have a credit score - it may be good, it may not. Make sure you are on the electoral roll otherwise it will be poor.
Assuming your score is ok then shouldn't be any major hassle, but the APRs are well above inflation usually.0 -
I was looking nearly new recently and then just went new as there was a good deal available.
£11k for a new Zafira - may not suit your needs but the lifetime warranty looked good to me.
http://www.phoenix-vauxhall.co.uk/plus/vauxhall-offers
Then you would be looking at dealer financing which might be easier than am unsecured bank loan.0 -
Thanks for the reply Alan, I thought a bank loan would be the only avenue if I'm to buy privately which looks like is going to happen. How do I check my credit score without using experian and having to put my card details in! Seen one golf for a great price so probably wouldn't wana go to a dealership and don't need anything as big as a zafira! What are the problems regarding an unsecured bank loan? Couldn't I get it secured against the car?0
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at 22 these days, I'm surprised you dont need a load for the insurance. :-)0
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zx6man wrote:at 22 these days, I'm surprised you dont need a load for the insurance. :-)
600 for the year with one years ncb! 1.2 tsi golf 2010 with 13,000 miles - car price £9,800 but I reckon could get for £9,500. I can only get together 1500 deposit too! Not sure what to do!!0 -
If you're buying privately and spending 10k, it would be advisable to get a HPI check and also have the car checked over by a mechanic. I think the RAC and AA do this. Your car will shortly be out of VW warranty as it's 3 years old and also require an MOT soon.
Call your bank, have a chat with them about a loan.tick - tick - tick0 -
Fevmeister wrote:zx6man wrote:at 22 these days, I'm surprised you dont need a load for the insurance. :-)
600 for the year with one years ncb! 1.2 tsi golf 2010 with 13,000 miles - car price £9,800 but I reckon could get for £9,500. I can only get together 1500 deposit too! Not sure what to do!!
My main bit of advice is don't buy a VW - Mrs Dynamicbrick has had two Polos and I had an R36 Passat. All three were plagued with problems, and VW warranty are pretty poor. One of the Polos had a water pump fail at 3000miles. Replaced under warranty, except I had to pay for a new cambelt and tensioner because they were not directly damaged by the failure but needed to be replaced as best practice (which they do). I gave up arguing with VW in the end.
The Passat I eventually gave back and walked away after 18 months - in that time I think it was in the dealership for three months total. After threatening with court VW refunded me those 3 months of payments. When it worked it was a belter of a car. But every journey was a spin of the roulette wheel... once had to drive from Newbury to Brighton with only 2nd and 3rd gear (DSG box) as the recovery truck was going to take six hours. Took them three weeks to fix that little problem.0 -
Why are you buying a car you can't afford?
That's how this country got into this economic mess.
(I lived without a tv for 2 years as I couldnt afford one without credit)0 -
Secteur wrote:Why are you buying a car you can't afford?
That's how this country got into this economic mess.
(I lived without a tv for 2 years as I couldnt afford one without credit)
I don’t think that’s strictly true. IMO debt is fine if its manageable and made as an investment.
So getting a TV wouldn't be a good idea as its not really an investment (unless you used it to watch education programs etc), but a car maybe if it allows you to work further away etc and therefore earn more money as a result.Mañana0 -
Secteur wrote:Why are you buying a car you can't afford?
That's how this country got into this economic mess.
(I lived without a tv for 2 years as I couldnt afford one without credit)
Don't worry mate I'm not as hard-up and bitter as you0 -
But if you are struggling to scrape together a £1500 deposit on a £9800 car, surely you should just buy a £3k (or less) car? i.e. buy within your means.
Thankfully my credit averse mindset has always served me well, and have been debt free (including mortgage, which was the only debt i ever took out) free for years now. Now aged 33.0 -
Fevmeister wrote:Secteur wrote:Why are you buying a car you can't afford?
That's how this country got into this economic mess.
(I lived without a tv for 2 years as I couldnt afford one without credit)
Don't worry mate I'm not as hard-up and bitter as you
Yes - but he's right though. You can easily get a low mileage, mint condition car of almost any type for 3k or less. This is because so many people like you who can't afford a new or near new car still go out and buy them thus devaluing second hand cars. It's fabulous news for vaguely smart people though so do carry on
PS I am bitter but not hard up. I could buy a new Golf tomorrow with cash but it wouldn't be half as good or fun as my low mileage 1985 Saab Turbo (or, for that matter, my mates mint X Type Jag that cost well under a 3rd of the price of your Golf and is a much nicer car). Think about it. In six months it'll just be transport anyway. Cars simply aren't worth getting into debt for.Faster than a tent.......0 -
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Well it's not my (or anyone else's) place to tell you what to do, and i dont usually preach, so i apologise for the above!
If you do splurge, then enjoy it!
Having said that, imagine the bikeage you could get for £9800!!!0 -
Fevmeister wrote:I'm starting a new job in the new year
I'm not sure a bank will consider you for a loan unless you have been in employment for a certain amount of time. Is it 3 months?tick - tick - tick0 -
Secteur wrote:Well it's not my (or anyone else's) place to tell you what to do, and i dont usually preach, so i apologise for the above!
If you do splurge, then enjoy it!
Having said that, imagine the bikeage you could get for £9800!!!
It's okay and I'm also sorry for my response! (a little over the top) I'm now looking at some cheaper alternatives and to buy from a dealer so I can get designated car finance!
Yes I did think that when I was posting the thread - it'd nearly cover half of that 22k team sky bike! On the other hand I'm quite happy with my garage of cervelos!
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By the way, a mate of mine used to be an accountant for a car dealers. Finance is where they made their money. They loved people applying for finance.........
Honestly, for purely practical purposes you don't even need to go anywhere near half your budget and you can still have a really nice car. Once you've had it a while, you really won't think about it anymore so all the additional cost will in effect have been for the extra enjoyment of a nearly new car for a few weeks. On the other hand, restrain yourself, save the money that would have gone on the finance, and you can get yourself something really nice effectively for free.Faster than a tent.......0 -
As pointed out above, the new car/credit boom does mean 5yr old or more secondhand stuff is utterly worthless.
I just bought the missus a 'new' car to go to stables in (getting annoyed as she was pinching my car all the time)
2001 Volvo S40 1.8 - 80k on clock, 1 owner. Tidy enough thing, was a p/ex into a main dealership.
Take a guess how much I got it for at auction
£275+ buyers fees.
Which is roughly equivalent to 1month installment on a nine grand loan.
Edit - Aside from being a smug git, it was more to point out the disparate value of what is essentially the same utilitarian thing; a smallish box on wheels designed to get you from one place to another, built 9 years apart.0 -
to be honest I would buy a £1500 quid diesel Golf and sleep at night. Would you buy a 10k road bike new and then in two years when you relise its worth £4k thats six k gone in depreciation alone. I know you said about someone being bitter, but to be honest its not being bitter its being sensible. If you can get £1500 together then why not buy a £1500 car? Surely buying a new golf is buying something you cannot afford? I dont understand the world where people buy things they cannot afford? Is it keepin up with jones's or what? here in spain they are in trouble with property thats gone wobbly but there is virtually no unsecured debt problem as people were simply not allowed bank loans for cars etc. If you cant afford it they would not lend it to you, hence why spain has not got the unsercured debt problem of the uk. Thats the only good thing mind you.
If I was looking to buy a car and had £1500 quid in the bank I would not start lookin on the net at cars that are 7 times the price of what money I have? simple maths. Up to you of course your money.
Anyone watch panorama last night and see how things can so 5hit faced so qucikly. Scary. Im keeping my money in the bank.
Buy what you can afford mate. Dont forget you will be paying interest and the loan back on a sum that was for example 10K in three years time you will still be paying the same ammount off each month on a car thats probably worth £3k at the most.0 -
Agree with the financial advice given, but if you want to spend this on a car, and you can afford any repayments, then go for it I say
You only live once, and you can spend your life saving for a rainy day, or just in case you need it in future, and then never get to enjoy what you have worked heard to earn.
Agree it is sensible to plan for the future, but enjoy your money and buy what you want while you can. It's important to live a little too Share The Road Event http://www.sharetheroadride.co.uk
Lancashire Cycle Link Group https://www.facebook.com/groups/126682247491640/0 -
I wouldn't buy a new car personally but I'd never knock those that do, after all, where do you think the second hand bargains come from? You shouldn't be discouraging folk from new cars if you like a bargain further down the line, rather more you should endorse it!0
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I'm far from an expert on finance, but can you get £9k of finance before you've actually started a job? Surely you won't score enough points (or whatever they call them) in the credit scoring?More problems but still living....0
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verylonglegs wrote:I wouldn't buy a new car personally but I'd never knock those that do, after all, where do you think the second hand bargains come from? You shouldn't be discouraging folk from new cars if you like a bargain further down the line, rather more you should endorse it!
It's not really about liking bargains. The problem at the moment is that second hand cars are stupidly undervalued. A more sustainable approach, both environmentally and economically would be for second hand cars to be worth more (achieved by not giving finance out to those who can't afford it really - which is probably about 90% of those who take it out). The result is that less cars are produced in the first place and those that are produced last longer as quality of maintenance is dependant (for ultimately unfathomable reasons) on the supposed cash value of the car.
Yes, the current situation is great for those of us who buy second hand in the short term but ultimately we all pay in the long run.
The worst of it is that the costs are unbelievably high. In the case of the OP, he starts out buying a too new car for too much money. In the long term, there's a good chance that that cycle carries on throughout his career and many 10s of thousands of pounds are spent keeping up with the Jones without the OP being ultimately any happier or even ever driving a car that is really any better (and more likely worse - a 3k luxury car is a far better means of transport than a new 20k Golf). If you don't get into the habit in the first place, it makes for a much nicer life.Faster than a tent.......0 -
Fevmeister wrote:How do I check my credit score without using experian and having to put my card details in!
You cant and why don't you want to?
Free 30 day check, what are you worried about?0 -
Fair play to you for being able to 'splurge' £9500 on a motor. I've never been lucky enough to be in your position however if I was I'm pretty sure a 1.2 tsi Golf would be the biggest dissapointment of my life. That amount of money could get you some special second hand cars.0
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Fevmeister wrote:
Well, it is less of an investment than a £200 car - both will fulfill the same role, and both will theoretically depreciate at the same rate. Actual cost to you is wildly different.
As pointed out earlier, is there a reason why you've picked an almost-new fairly dull version?
An 07 Golf GTi is down in that price range now, depreciating slower because it's older and more desirable, and a riot to drive - why not one of them?
Oh, forgot to mention, you're best not listening to old farts like us. Act on impulse, use plenty of man-maths, and do whatever you think is right for you.0
