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Car Finance...!!

854 views 8 replies 7 participants last post by  Gizzard Puke 
#1 ·
So..., car finance and the struggles I'm having.
I'm going to have a quick rave. However, it may make you think.
I am currently after a ST diesel estate, plenty around, however, they are now clocking up some miles but still holding their value.
So, for the money I want to spend, 5 grand, there are cars at 88,000 (at 5.5k) to 124,000 (at 4.5k), that are in great condition with history and low ownership.
However, did you know car finance companies will not finance the cars at 124,000 as "they have to many miles on the clock"!!!???
Well, they'll finance it, but only over 18 months plus 2 on top of the price.....!
Think about that for a second.
A 5k car, plus 2k interest over 18 months..., that £389 per month.
Naturally, making it completely unaffordable :-(
Told them I could buy a 20k car if I had that sort of money.

So there we have it. Finance companies making rules resulting in cars being worthless.

Of course, I do understand why they are doing this, but we all know it's in their favour, not ours.

So, back to square one. There will be an ST diesel estate in blue on my drive...., just not this year!

Thanks for reading

Sam.
 
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#2 ·
So there we have it. Finance companies making rules resulting in cars being worthless.

Of course, I do understand why they are doing this, but we all know it's in their favour, not ours.
Sorry to here the bother you are having but that's the trouble with finance, they own the car until it's paid for so they need (want) the best chance of getting some money if you fail to make payments.

2 things to try.

The money you were willing to pay out put in a savings account and start saving.

or bank/unsecured loan.
 
#3 ·
Hi Neil,

Yeah I'll get there eventually. Needs must an all that.
I do understand why they do limit it, nobody really wants an outstanding loan on a car with high mileage, if it went bang or was written off they would loose out, but now-a-days high mileage is over 200k and even that is still sell able.

Either way, I still want one, still have a list of parts to buy to "tune" it and still look forward to meeting ya'll :)

Sam.
 
#4 ·
I would srongly suggest NOT using finance, simply for the fact that if your circumstances change and you cannot afford the payments, you will lose the car, which then spirals you into not beig able to get to and from potential work, so things get worse, and on and on, blah, blah blah.

An unsecured loan would be the better option, as the loan companies are generally more accomodating, and prepared to enter into some form of agreement if things go bad.
 
#6 ·
I agree with Martin and Dom, get a loan and /or a bank loan/overdraught, with a finance agreement not only are the repayment ALOT higher but also as you say if the cars written off or goes bang you still have to make the remaining payments, plus the additional cost of any repairs.
 
#7 ·
As these guys have said, I would always find a way of buying and owning the car and then make the payments elsewhere for a loan or something.

You have the car then and can always down-grade it if you need to release some funds.

It is only on a brand new car that I would every consider any kind of finance agreement, just as there are so many around you can get some good deals and you have the benefits that come with something brand new.

But as a car enthusiast, I would always want the car to be mine so I had free-reign over what I do with it.

Good luck thought and hopefully you will sat behind an ST badge before you know it!
 
#9 ·
Agree with Martin.

Finance is a good option for new or nearly new cars, particularly when you can hand the car back half way through the agreement - providing it's been serviced, mileage within agreed limits and is in good condition.

But for post-3 year old motors, forget it. Unsecured loan or savings is a much better approach. At least with an unsecured loan you may have the option to overpay, reschedule and settle early without charge.

Incidentally, the finance for my ST (back in 2006 when it was nearly new) was in fact a Fixed Sum Loan from Bank of Scotland - basically an unsecured loan which could not be rescheduled. APR was 6% but for years I thought it was Finance deal secured on the car. Just goes to show the deals they were dishing out during the pre-credit crunch days.
 
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