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First Car: Finance or Buy 2nd Hand?

Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA
Reply 1
Avatar for IWMTom
IWMTom
20
Original post by aleefbailey
Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA


How old are you?
Reply 2
Avatar for aleefbailey
aleefbailey
OP
4
Original post by IWMTom
How old are you?


22
Reply 3
Avatar for IWMTom
IWMTom
20
Original post by aleefbailey
22


If you have a decent credit history, you can probably get some pretty acceptable financing deals, but if you can afford it outright, save yourself the interest payments!
I bought a mini for my first car (2nd hand it's 10 years old) and paid the tax, insurance and car up front
Original post by aleefbailey
Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA


I'd recommend you buy a second-hand car if you're not looking for anything "fancy". The interest on finance is ridiculous!
Original post by aleefbailey
Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA


Second hand. Finance is a bad deal, especially if your income source isn't reliable. You'll almost always do best paying upfront. And in any case, there is no need to buy a brand-new car. With a few rare exceptions, they depreciate considerably. Look for a car that's 5-10 years old and you'll save yourself HUGE money.
Original post by aleefbailey
Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA


I would go for second hand. Brand new you will have too much to pay for soaring costs for road tax, car repairs and it just never ends. However this all depending on the car you get.
(edited 6 years ago)
Reply 8
Avatar for IWMTom
IWMTom
20
Original post by MiszShortee786
I would go for second hand. Brand new you will have too much to pay for soaring costs for road tax, MOT, car repairs and it just never ends. However this all depending on the car you get.


I'm not sure how this makes sense - why would a new car cost more to MOT?
Original post by IWMTom
I'm not sure how this makes sense - why would a new car cost more to MOT?


Im talking about second hand. Although its good to get second hand cars there are downsides to them as well.
Reply 10
Avatar for IWMTom
IWMTom
20
Original post by MiszShortee786
Im talking about second hand. Although its good to get second hand cars there are downsides to them as well.


Right...
Original post by aleefbailey
Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA


I personally would say go second hand. I have passed my driving test and have saved around £3000. I don't want a amazing first, like yourself just something which will get me from A to B. The second hand market is good in my opinion if you have saved up. But make sure you do your checks
Original post by aleefbailey
Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA


Buy used if you have the savings, buy finance if you want something a bit newer (only talking 2-3 years) and you don't have the money right now, but have the income.

It depends on what you want from the car. If you say you want an A to B car, you can just get something simple and affordable.
Deffo get a used car, new cars are pointless unless you are minted. Lose a third of their value as soon as you drive them off the forecourt

You can get some cracking deals on cars that are barely a year or 2 old. You can normally get any small hatchback nearly new for anywhere from £6-8000. Depending on how much money you have saved and your income, finance can be a good option but I’d suggest speaking to your bank about getting a loan for the car also, sometimes the rates can be better and it gives you an extra bit of bargaining power over finance if you can say you’re preapproved for a loan at x rate
If you buy a 20 years-old car, you may lose some money - you may buy a wreck, but if you don't it will not lose any value unless you wreck it.
If you buy a 10 years old car, you will lose some money- if it's not a wreck, and you keep it in good shape, it will still lose some of it's initial value.
If you buy a 5 years old car, you will lose some money, and you may loose more than with the 10 yo. car. Young age is no guarantee of good condition.
It will keep losing value, and it will be more expensive to maintain than older conservative designs.
If you buy a new car, you will lose lots of money because of first three years depreciacion which takes 50-60% of cars value.
Thank you for all the replies! i'm so sorry to reply to late, but yes i think i'm going save up for a second hand car (when i finally pass!) Thank you all :smile:
Original post by aleefbailey
Thank you for all the replies! i'm so sorry to reply to late, but yes i think i'm going save up for a second hand car (when i finally pass!) Thank you all :smile:



Yeah I'd buy second-hand. The only reasons I went for finance was because A) It worked out cheaper for me in the short-run (but will be far more expensive long-term and have more of a commitment) B) I wanted the ST-Line Fiesta, which is not an old model it's only been out little more than a year or something, so getting one second-hand in my area is not only close to impossible, in a year it's only lost around £4000 of its' original £16.5-17.5k value. I'd have had to of financed that anyway Well originally I wanted the Ibiza FR (and briefly got hold of one too); but the wait time was simply too much for a new on and with the older Ibiza models, the features don't come close to what they have now. C) Getting any good second-hand cars at a reasonable price in Middlesex/Surrey is a joke. A banger with body work issues in this area that will actually run and do more than get into second gear will cost anywhere between £1000 and £1500. Insurance for around £2000, start tallying those up and it simply wasn't worth it.

You can resell a second-hand car and get most if not all your money back, I will never get back the £16k I'm spending on my car.
(edited 6 years ago)
Original post by aleefbailey
Hello!

I have just started learning to drive so i'm being very very optimistic here haha but I was wondering what is best to do on your first car?

My friend went straight on a finance with a new Citreon and she pays £120ish a month for just the car. However, another friend of mine just bought her car up front but then didnt have the money to insure it etc. I'm just wondering whether it is better for your first car, to pay upfront for a second hand car or to go on finance for a new car?

I'm not after anything fancy, I just want something to get me from A to B. I've been looking at Hyundai, Vauxhall, KA etc.

Which is the best option?

TIA


Definitely buy second hand as your first car.
As well as the interest payments with having on finance which makes it more costly in the long run, you are bound to have the odd scrape etc in your first couple of years (most people do) so it wont matter quite so much if you have brought second hand. And if you save up, you will be able to afford the car and insurance.
i wouldn't finance a first car. for the first year, get your hands on driving on your own in different situations, so get something cheap. first year you might scrape it or something, also finance ties you down to a car for a number of years. only car i'd finance is something big like a mercedes.
Original post by storm95
i wouldn't finance a first car. for the first year, get your hands on driving on your own in different situations, so get something cheap. first year you might scrape it or something, also finance ties you down to a car for a number of years.only car i'd finance is something big like a mercedes.


Oddly enough that is exactly what I wouldn't finance. I'm not one for status cars, but if I was, I'd want the ability to tell people I own it, not my bank lol.

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