FabSwingers.com forum: Cars on finance.

By (user no longer on site) OP
over a year ago

Anyone here bought their car on finance? Or currently on finance with your car?

What's your take on it? Is it emptying your pockets and making your months difficult financially? Or is it actually quite manageable?

Sat here thinking of the pros and cons. Was thinking of buying a used car previously but now i'm thinking why not treat myself to a nice, new fresh one.

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By *izzy RascallMan
over a year ago

Cardiff

If its any help, you often get free insurance, tax, and servicing with NEW cars which are MOT exempt for three years.

Thought about contract hire or whatever that is when you dont get bills, just send it back every three years?

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By (user no longer on site)
over a year ago

It's like anything else really just don't over stretch yourself, set a budget and stick to it, if you can only afford 150 don't get a car that's 200, simple maths really

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By *abioMan
over a year ago

Newcastle and Gateshead

"Anyone here bought their car on finance? Or currently on finance with your car?

What's your take on it? Is it emptying your pockets and making your months difficult financially? Or is it actually quite manageable?

Sat here thinking of the pros and cons. Was thinking of buying a used car previously but now i'm thinking why not treat myself to a nice, new fresh one.

my car was bought on finance... the thiung you have to remember is that it is like any other monthly payment you make (rent, sky/virgin, leccy/gas ect...) so if you know what monthly payments you can afford... then you know not to be silly and overstretch

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By (user no longer on site)
over a year ago

There's pros and cons, watch out for the balloon payment on a pcp.

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By (user no longer on site)
over a year ago

Remember to take into account depreciation, servicing, etc when you look at the figures for a new car.

I took a long time last year looking at it and Leasing worked out massively cheaper.

Fixed amount, no depreciation, no servicing, etc just £XX per month. You never own it BUT never have the problems that come with owning it either. You pay the same as finance without the losses involved.

Finance was a loss as you pay 100% + interest, then lose depreciation the moment you drive it but still owe 100%+

PCP is ok if you don't mind handing it back or paying the balloon at the end.

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By (user no longer on site)
over a year ago

"If its any help, you often get free insurance, tax, and servicing with NEW cars which are MOT exempt for three years.

Thought about contract hire or whatever that is when you dont get bills, just send it back every three years?

I quite fancied doing the contract hire but what happens if the car is stolen or written off during that period? Does the lease company give you another car? If not are you still tied to that contract? The insurance company will only pay what they think the cars worth at the time.

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By (user no longer on site)
over a year ago

"If its any help, you often get free insurance, tax, and servicing with NEW cars which are MOT exempt for three years.

Thought about contract hire or whatever that is when you dont get bills, just send it back every three years?

It doesn't belong to you - not your problem.

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By (user no longer on site)
over a year ago

i missed ONE payment and was threatened with all sorts.. worst ever experience.

Santander were the finance company i used

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By (user no longer on site)
over a year ago

You also need to be realistic about your mileage too.

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By (user no longer on site)
over a year ago

Finance was a loss as you pay 100% + interest, then lose depreciation the moment you drive it but still owe 100%+"

I don't like finance.

I wouldn't buy a new car either.

I used to get a new company car every 6 months with my old job.

That was different.

I wouldn't personally buy a brand new car.

And definitely not on finance.

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By (user no longer on site)
over a year ago

With PCP you actually have 3 options. Pay the balloon payment, give the car back and walk away, or use the equity in the car at the end, as your deposit for the next one. And yes, there is equity, my husband did it with equity from a Toyota Yaris to a Honda Civic and myself from a Fiat 500 to another one.

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By (user no longer on site)
over a year ago

why not lease a nice new motor instead

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By *abioMan
over a year ago

Newcastle and Gateshead

i didn't do my finance on a new car... i wouldn't buy a brand new car because like others have said the price drops are too great.... but if you can get finance on a care thats let say 2-3 years old, then it is much more of a workable option

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By (user no longer on site)
over a year ago

If you buy the car on HP The finance company own the car until you have paid for it. Unless the law has changed since I worked in the industry, the finance company can snatch it back if you miss payments. If you take out a personal loan the car is yours from day one.

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By *trawberry-popWoman
over a year ago

South East Midlands NOT

My last car was 6 months old and had done 5k miles when I bought it for £8k less than the brand new price...deffo wouldn't buy a brand new car myself!

My current car and last 2 cars have been on finance. I've found it manageable because i've stuck to a budget.

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By (user no longer on site)
over a year ago

On average most cars are worth about 60% of their list price after three years. There are some exceptions, minis and small Hondas have higher residuals

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By *urvybrunette91Woman
over a year ago

tidworth

Please please be aware that your situation could change! I bought a car on finance, now my situation has changed drastically - so I am finding payments a stretch!

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By (user no longer on site) OP
over a year ago

Well, the car i have my eye on at the moment is not a completely new car. It's a 2007/2008 model with extremely low mileage.

Just wondered how many manage with car finance. My outgoings aren't too much and i've always been on top of everything. I feel like treating myself to something nice and fresh - i usually don't spend a lot on myself.

This is something i've never really done or previously considered. Always thought i'd save up and buy it outright. By the time i do all that, i'd most probably croak lol (joking).

Spoke to the dealers and they gave me (what seemed to me a decent quote) for the car and to me it seems as though i'd be able to manage it.

I don't really know anyone who has bought their car on finance - so looking for some first hand experiences.

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By *ulfilthmentMan
over a year ago

Just around the corner

"I quite fancied doing the contract hire but what happens if the car is stolen or written off during that period? Does the lease company give you another car? If not are you still tied to that contract? The insurance company will only pay what they think the cars worth at the time."

You could always get return to invoice insurance cover for the duration of the lease period. That way you can guarantee getting enough to replace it if the worst comes to the worst.

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By (user no longer on site)
over a year ago

Bought my current car on finance was £17,000 brand new on a 63 plate. got £3750 for my part ex pug. Put around £1500 cash into it too. was paying £245 a month for it.

Paid it off late last year so I own it outright, still keep the 5 years servicing and MoT that came with it

No dramas when I wanted to pay it off, just did a bank transfer

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By (user no longer on site)
over a year ago

After a recent road traffic accident with not much from insurance right off payment, I have now opted for a lease car through my employer. Like someone has already said same fixed amount for 3 years, no road tax, car insurance, mot/servicing to pay, free tyre replacement and benefit in kind in terms of my tax reduction as the scheme is a salary sacrifice scheme ie deductions for the car are made before being taxed.

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By (user no longer on site)
over a year ago

"Well, the car i have my eye on at the moment is not a completely new car. It's a 2007/2008 model with extremely low mileage.

This is something i've never really done or previously considered. Always thought i'd save up and buy it outright. By the time i do all that, i'd most probably croak lol (joking).

Spoke to the dealers and they gave me (what seemed to me a decent quote) for the car and to me it seems as though i'd be able to manage it.

I don't really know anyone who has bought their car on finance - so looking for some first hand experiences."

Out of interest Pops - what car?

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By *bi HaiveMan
Forum Mod
over a year ago

Cheeseville, Somerset

"Well, the car i have my eye on at the moment is not a completely new car. It's a 2007/2008 model with extremely low mileage.

This is something i've never really done or previously considered. Always thought i'd save up and buy it outright. By the time i do all that, i'd most probably croak lol (joking).

Spoke to the dealers and they gave me (what seemed to me a decent quote) for the car and to me it seems as though i'd be able to manage it.

I don't really know anyone who has bought their car on finance - so looking for some first hand experiences."

Check the interest rate on the car finance - then see what you can get on an unsecured personal loan.

Even if the loan is ever so slightly more expensive - should anything go tits up financially for you nobody will come looking to take your car away. Unsecured loans are just that - unsecured.

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By (user no longer on site) OP
over a year ago

"Well, the car i have my eye on at the moment is not a completely new car. It's a 2007/2008 model with extremely low mileage.

This is something i've never really done or previously considered. Always thought i'd save up and buy it outright. By the time i do all that, i'd most probably croak lol (joking).

Spoke to the dealers and they gave me (what seemed to me a decent quote) for the car and to me it seems as though i'd be able to manage it.

I don't really know anyone who has bought their car on finance - so looking for some first hand experiences.

Out of interest Pops - what car?"

Audi S8. Thinking of chasing my dreams. Why not eh?

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By (user no longer on site)
over a year ago

True - take a very very good look at servicing costs on those - brake discs/pads in particular..

You might change your mind

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By (user no longer on site)
over a year ago

Oh - and WHEN it needs the cam belt/waterpump...

You'll need another loan...

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By *icketysplitsWoman
over a year ago

Way over Yonder, that's where I'm bound

I've bought every new car on finance. It's always been fine. I never go over the monthly budget I set and try and take advantage of every freebie they offer.

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By *appyguy17Man
over a year ago

walthamstow

Usually it's better to buy the car on finance.......car companys seem to be able to do interest free loans and if you don't take it..they don't give the money off the price of the car...so even if you have the money it's better to to have the interest free loans and put your money in the bank...

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By *icolerobbieCouple
over a year ago

walsall

I don't like finance, I save up and buy what I can afford. Whatever happens, my possessions are mine and do-one can take them away. That is how I like to live, I couldn't bear the thought of losing my job and ending up in difficulty.

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By (user no longer on site)
over a year ago

Manufacturers discount the finance on new metal to shift units. Finance on used vehicles can be extortionate, second only to wonga and their mates for cost

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By (user no longer on site) OP
over a year ago

"True - take a very very good look at servicing costs on those - brake discs/pads in particular..

You might change your mind

Yeah, the running costs are what i'm worried about. See what the future holds.

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By (user no longer on site)
over a year ago

Disks/pads budget £600-1k

Cambelt £1200 as it's an engine out

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By (user no longer on site) OP
over a year ago

Touch wood. I've never had any problems like that with any of my cars. Only thing i've had to do with my cars have been changing the tyres.

This is a tough one.

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By (user no longer on site)
over a year ago

Pads/disks are consumable on them - just be glad it's not the RS4!!

Water pump needs to done at the same time as cambelt or its major when it fails.

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By *ophieslutTV/TS
over a year ago

Central

I'm ok with hiring. Whilst liking the idea of home ownership I'm not sure there's a need to own a car.

I always calculate the total cost of acquisition for a product or service, whether it's a mobile phone, car use or buying and adding ink to a printer, for my predicted use.

I'd consider occasional rental too, if use was sporadic.

Main point is to run your figures over a few years and check you're ok with outlay and commitment, and which is best for you, if any.

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By (user no longer on site) OP
over a year ago

Yeah, trying to weigh it all up. Someone else has their eye on the car too. And just like the other one i had my eye on, some other sod might just buy it.

(Sigh)

Having a look at costs and revies of those who've owned such cars

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By *icketysplitsWoman
over a year ago

Way over Yonder, that's where I'm bound

Does it park itself and what will you do instead if it does?

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By (user no longer on site) OP
over a year ago

"Does it park itself and what will you do instead if it does?

It has cameras and a television.

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