Finance, Bank loan or car for £1500

Watch
route255
Badges: 11
Rep:
?
#1
Report Thread starter 2 weeks ago
#1
Need to see about getting a car soon. I start a job thats a 20 min drive but a 2 hour commute of 2 trains plus two 20 min walk either end. Was thinking of working the job for two months and then looking at car, save a bit from wage.

I was thinking of buying a older car around £1500. Or taking out a bank loan for £3 to £4k and buying a better car. Or should I finance a newer car, but takes ages to pay off.
0
reply
HorribleHatty
Badges: 11
Rep:
?
#2
Report 2 weeks ago
#2
My first choice would be the super cheap car with a long MOT, run it until it stops being worth fixing, and (importantly) save the money you’re not spending on car payments to buy your next (better) car.

My second choice would be to get a loan for a second hand car. You can get a decent* low-mileage relatively newish car for under £5k from a dealer.

Personally I wouldn’t finance a new car or get a lease - but that’s just me. I’m very debt adverse and my job doesn’t rely on my image. If you’re an estate agent or travelling salesman this might be a good option. Or, if you’re going to be earning a decent wage and won’t miss the money.

*by decent I mean well maintained rather than a fancy Mercedes or something like that.
Last edited by HorribleHatty; 2 weeks ago
0
reply
StriderHort
Badges: 21
Rep:
?
#3
Report 2 weeks ago
#3
(Original post by HorribleHatty)
My first choice would be the super cheap car with a long MOT, run it until it stops being worth fixing, and (importantly) save the money you’re not spending on car payments to buy your next (better) car.
What if the super cheap car dies on day 1?, that's your £1500 gone, (they're generally super cheap for a reason). You also need to consider how understanding will an employer be when a newstart calls in to say they'll be late... again...

In short, I'd prefer something slightly more trustworthy, I'd consider saving just a little but more and trying to get to £2000-£2500 for a bit more choice. It's not that you can't get a decent car for £1500 (mine was 1250) but you either need your wits about you or a lot of luck... there's just so many chancers trying to palm off really bad cars around those prices.

I've personally never been a fan of car finance, esp for used cars but it will depend on your circumstances... it obv works for many people. But remember if buying a car for £3-4k from a commercial trader on credit... about 1/3rd of that price is just profit to the trader & finance place, you're not getting 3-4k of 'car' if get me. (One car i'm wanting came up on gumtree for £3k last week, 10 hours later a commercial trader advertises it for £4k... they haven't done anything to it, just slapped a big margin on)

It depends how willing you are to learn and get your own hands dirty. I've saved maybe £1000 in the last year by doing my own repairs... but that's having access to a garage to work and the time.
0
reply
Zarek
Badges: 21
Rep:
?
#4
Report 2 weeks ago
#4
I would go for the better car and a bank loan. Unreliable cars are an expensive nightmare and I reckon you will be able to get a better interest rate from the bank. This said there does seem to be some reasonable car finance deals. Work out what you can afford to pay each month first.
0
reply
route255
Badges: 11
Rep:
?
#5
Report Thread starter 2 weeks ago
#5
Thanks for advice. I had a car after I passed, was about £1500 and last about 7 months until had problems. So I'm not keen to repeat. I'm edging towards a bank loan, The new job is near enough full time, I will wait a few months so settle into new job. I'm looking at having a car longer term as I'm still looking for a grad job. The grad job will require a car for travelling to sites, so need something decent if I start one.
0
reply
StriderHort
Badges: 21
Rep:
?
#6
Report 2 weeks ago
#6
(Original post by route255)
Thanks for advice. I had a car after I passed, was about £1500 and last about 7 months until had problems. So I'm not keen to repeat. I'm edging towards a bank loan, The new job is near enough full time, I will wait a few months so settle into new job. I'm looking at having a car longer term as I'm still looking for a grad job. The grad job will require a car for travelling to sites, so need something decent if I start one.
You did better than me, I got about 6 weeks out my first £1650 one

If you're just needing a little extra budget short term then a small bank loan might well be best, esp if you can get a decent deal from your existing bank and you sometimes get special offers if it's for a car (free AA, cheap insurance ect)

If you do end up buying from a dealer you get a lot stronger protection if you pay by credit (even a part payment of £100+). If the vehicle is substantially not as described ect, the credit place will refund your money and take on the fight on your behalf, which can be a lot more realistic than trying to fight with a dodgy dealer who is avoiding you. (Worked for me 100% when i was sold a crap Corsa)

One thing to note is the used car market is pretty mad in terms of prices right now. I've been window shopping over the last year and prices have been steadily hopping and skipping up. Many inc myself predicted a buyers market and cheap deals but apparently not... Brexit worries, lower new car production, people spending less on big ticket items... there seems to be a lot more demand for used cars over new financed ones for now. (just my opinion)
0
reply
route255
Badges: 11
Rep:
?
#7
Report Thread starter 2 weeks ago
#7
(Original post by StriderHort)
You did better than me, I got about 6 weeks out my first £1650 one

If you're just needing a little extra budget short term then a small bank loan might well be best, esp if you can get a decent deal from your existing bank and you sometimes get special offers if it's for a car (free AA, cheap insurance ect)

If you do end up buying from a dealer you get a lot stronger protection if you pay by credit (even a part payment of £100+). If the vehicle is substantially not as described ect, the credit place will refund your money and take on the fight on your behalf, which can be a lot more realistic than trying to fight with a dodgy dealer who is avoiding you. (Worked for me 100% when i was sold a crap Corsa)

One thing to note is the used car market is pretty mad in terms of prices right now. I've been window shopping over the last year and prices have been steadily hopping and skipping up. Many inc myself predicted a buyers market and cheap deals but apparently not... Brexit worries, lower new car production, people spending less on big ticket items... there seems to be a lot more demand for used cars over new financed ones for now. (just my opinion)
Unlucky, I sold my car for about £500. lost a grand as I bought it for £1500. I wanted rid of it ASAP. I don't have a credit card so not sure if i will get one. I could use some money from my savings but will look closer at loan. Insurance was £700 a year 6 years ago, perhaps its cheaper as I'm over 30.
0
reply
Dunnig Kruger
Badges: 14
Rep:
?
#8
Report 2 weeks ago
#8
It is complete nonsense to equate trustworthiness with cost.

Cars get cheaper as the get older. Also some cars attract premium pricing over others for the same age and market segment. Going for the lower valued cars makes sense.

If you can afford the insurance, a Volvo with a D5 engine has very good reliability and non rusting prospects going forward. And the pre DPF ones (pre 2005) can be picked up for £1000 ish.

Or something with the VAG 1.9 diesel engine should be good for Starship Enterprise mileages too.
0
reply
roo02
Badges: 12
Rep:
?
#9
Report 1 week ago
#9
(Original post by Dunnig Kruger)
It is complete nonsense to equate trustworthiness with cost.

Cars get cheaper as the get older. Also some cars attract premium pricing over others for the same age and market segment. Going for the lower valued cars makes sense.

If you can afford the insurance, a Volvo with a D5 engine has very good reliability and non rusting prospects going forward. And the pre DPF ones (pre 2005) can be picked up for £1000 ish.

Or something with the VAG 1.9 diesel engine should be good for Starship Enterprise mileages too.
Volvo!!

I bought the cheapest s60 D5 p2 on auto trader for 1k. It burns a lot of oil, and I've had horrendous DPF issues, however now I've deleted the DPF I don't see it dying any time soon. Will hopefully be keeping this car for a long time

They're great, fast, reliable cars, OP; cheap on insurance too; would recommend. Just make sure the timing belt has been done within the last 50k miles: they can be expensive to replace
Last edited by roo02; 1 week ago
1
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

What factors affect your mental health the most right now?

Anxiousness about lockdown easing (159)
4.88%
Uncertainty around my education (476)
14.6%
Uncertainty around my future career prospects (365)
11.2%
Lack of purpose or motivation (458)
14.05%
Lack of support system (eg. teachers, counsellors, delays in care) (152)
4.66%
Impact of lockdown on physical health (197)
6.04%
Loneliness (280)
8.59%
Financial worries (114)
3.5%
Concern about myself or my loves ones getting/having been ill (132)
4.05%
Exposure to negative news/social media (149)
4.57%
Lack of real life entertainment (179)
5.49%
Lack of confidence in making big life decisions (293)
8.99%
Worry about missed opportunities during the pandemic (306)
9.39%

Watched Threads

View All