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How do you buy a car- is it all at once/ monthly etc?

I'm 18, travelling a lot to and from university so I wanted a car to save me getting the bus- works out cheaper in the long run and I need it to get to work because my mother can't always leave me in.

I'm looking to purchase a 2012 3door 1.2 Volkswagen Polo which is currently priced at 7,750.

My mother is looking to help pay for it and I booked a test drive for friday. However, I'm wondering how does one buy a car, is it all upfront, monthly or pay most of it then pay the rest back?

I would personally much rather pay for it up front but I wanted to see what is a better option.

Also, what is the best way to negotiate a lower price on cars? I have zero negotiation experience.

I'm planning to pay my insurance all at once so I can save for next years.

Thank you for your answers :smile:

Reply 1

username1449798

You can pay monthly for cars or even take a loan for a car. Negotiating on a price for second hand cars is ok but brand new from a company... im not sure since the sales man has to meet a quota every month. Insurance is expensive, its about 150 pound a month for young drivers, how do you expect to pay that?

Reply 2

username973803

Original post by Direstraights

I have been working part time since I was 15 balancing two jobs and school. My mum is a single parent so I luckily have a maintenance grant which I intend to put towards it. I'm not so much worried about the insurance but the upkeep of the car.

I'm looking to negotiate a little less on the price. I'm putting as much research into the car as possible :smile:

Thanks for answering :smile:

Reply 3

username1449798

Original post by NicolaM

Thanks for answering :smile:

No problem.

Reply 4

DarkMagic

If you can afford to buy the car and pay for insurance up front, then do it. It works out cheaper as you will have to pay interest if you opt to pay monthly.

Reply 5

username973803

Original post by DarkMagic

If you can afford to buy the car and pay for insurance up front, then do it. It works out cheaper as you will have to pay interest if you opt to pay monthly.

Really? That's great to know, thank you! Also, I hate the idea of paying monthly, I already do it for accommodation but that's different to buying a car haha. Thank you! :smile:

Reply 6

Emma:-)

Entertainment Forum Helper

Original post by NicolaM

If you can afford to pay for the car and insurance upfront, then id do that. It works out cheaper that way, as if you pay monthly for insurance or have a car on finance or anything, it usually costs a bit more due to the interest added on.

Reply 7

hothedgehog

On the negotiation topic: it's quite hard to get them to knock a lot of money off a car. Sometimes, it can be better to get 'freebies' thrown in which actually work out cheaper in the long run. So, think if the car would need any accessories that they could chuck in or see if they will offer you a deal on servicing for the next few years or something. Also, never ask for a reduction or money off... it's too obvious. If you ask for things like 'any improvement on that price?' it's a bit more positive so they're more likely to consider. I mean, it's not going to help you out loads, these people get folks haggling all the time, but it could help out a bit!

Reply 8

UKTomm

It's better if you can pay all upfront to avoid those interest fees. Is there a specific reason that you want to spend that much on a car when you're only 18? Is this your first car? I'm not attacking your choice, I'm just curious behind your decision :smile:

Reply 9

danty

If you're going for a cash sale you will have a far better chance of getting a reduction on the screen price than if you were financing. If you're planning part ex or finance, your odds are greatly reduced.

Many second-hand dealers inflate the screen price because they expect people to pay it. There is no harm in asking for a reduction in price for a cash sale, and certainly no harm in asking for free servicing/extended warranties.

Go with the mindset of "If I don't get a better deal, I'll leave it there" and they'll stop you as you're walking off the forecourt with a change of heart. Sure, a reduced commission hurts a salesman, but not as much as no commission at all due to a lost sale does.

~Matt

Reply 10

JC.

Depends on the car.
Financing a car only works out in your favor if the resale value at the end of the term would be less than what you'd lose in depreciation.
An example of this would be something like a Jaguar XJ - they depreciate like a stone. You'd lose far more in depreciation had you handed over the full sale price than if you'd just paid for it monthly and hand the car back at the end of the 3 year period.

Reply 11

Y333EEE

Mehh try get a Diesel, if you're on a budget and doing a lot of miles it'll be good!

Also it depends, if you have the cash then yes theres nothing to stop you paying for it all at once otherwise you get a loan/finance and pay a set amount every month over a few years

Reply 12

XZX

If it's just a car to get you from A to B then why does it need to be a 2012 car? Why not a 2003 car? There's plenty of 2003 Polo's, Clio's and so on that are just as reliable and will be miles cheaper and won't depreciate in value unlike a 2012 car.

In terms of negotiation, does the car have lots of miles? Does it have any rust in the usual places? How much MOT does it have? Any common mechanical or electrical problems? Also is it a VW garage or some back street garage with some pushy sales man? If it's the latter then there's always room for negotiation, no doubt there will be a lot of things covered up on this car to fool the average person, check everything from the brake pedal to the rear wiper motors, trust me most car garages are ran by con men who will offer you warranty until you've bought the car.

Reply 13

monkeyman1990

If you have the means to pay for it upfront, then do that. You will be able to negotiate a better deal as a cash buyer too. Plus finance usually ends up with you paying a premium. Be sure that you can definitely afford it though!

Reply 14

UKTomm

Original post by XZX

why does it need to be a 2012 car? Why not a 2003 car? There's plenty of 2003 Polo's, Clio's and so on that are just as reliable and will be miles cheaper and won't depreciate in value unlike a 2012 car.