Buying new car

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Fevmeister
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Buying new car

Postby Fevmeister » Thu Dec 13, 2012 14:58 pm

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

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tim wand
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Re: Buying new car

Postby tim wand » Thu Dec 13, 2012 15:10 pm

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.

Fevmeister
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Re: Buying new car

Postby Fevmeister » Thu Dec 13, 2012 15:17 pm

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 golf

alan sherman
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Re: Buying new car

Postby alan sherman » Thu Dec 13, 2012 15:19 pm

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.

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Re: Buying new car

Postby alan sherman » Thu Dec 13, 2012 15:21 pm

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.

Fevmeister
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Re: Buying new car

Postby Fevmeister » Thu Dec 13, 2012 15:28 pm

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?

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zx6man
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Re: Buying new car

Postby zx6man » Thu Dec 13, 2012 15:45 pm

at 22 these days, I'm surprised you dont need a load for the insurance. :-)

Fevmeister
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Re: Buying new car

Postby Fevmeister » Thu Dec 13, 2012 15:52 pm

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!!

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metronome
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Re: Buying new car

Postby metronome » Thu Dec 13, 2012 16:02 pm

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 - tick

dynamicbrick
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Re: Buying new car

Postby dynamicbrick » Thu Dec 13, 2012 16:46 pm

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.

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Secteur
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Re: Buying new car

Postby Secteur » Thu Dec 13, 2012 17:10 pm

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)

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pb21
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Re: Buying new car

Postby pb21 » Thu Dec 13, 2012 17:20 pm

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.

Fevmeister
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Re: Buying new car

Postby Fevmeister » Thu Dec 13, 2012 17:47 pm

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

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Secteur
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Re: Buying new car

Postby Secteur » Thu Dec 13, 2012 19:01 pm

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.

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Rolf F
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Re: Buying new car

Postby Rolf F » Thu Dec 13, 2012 19:05 pm

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 :wink:

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.......

Fevmeister
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Re: Buying new car

Postby Fevmeister » Thu Dec 13, 2012 19:07 pm

Secteur wrote: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.


I'm starting a new job in the new year and it would be impossible to cycle commute or use public transport to get there. I have been in education for the past 17 years and have worked my ars* off to get to this position where I have a graduate job that pays well with good prospects. I would like to have a small splurge and buy myself a nice car as a reward for my hard work. Yes I see your point in just buying a cheaper car but with this new job if I can comfortably hold down the monthly repayments then I don't see why I should!

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Secteur
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Re: Buying new car

Postby Secteur » Thu Dec 13, 2012 19:33 pm

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!!!

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metronome
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Re: Buying new car

Postby metronome » Thu Dec 13, 2012 19:35 pm

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 - tick

Fevmeister
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Re: Buying new car

Postby Fevmeister » Thu Dec 13, 2012 20:13 pm

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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Rolf F
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Re: Buying new car

Postby Rolf F » Thu Dec 13, 2012 22:21 pm

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.......


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