Register Login
The UK's No.1 Chrysler Owners Forum
Reply
 
Thread Tools
Old 13-03-2015   #1
Join Date: Nov 2014
Location: England
Posts: 160
Thanks: 4
Trader Rating: 0
United Kingdom 
What do you think guys?

Right guys and gals I'm looking at getting my new car in 6 months the car is around 2,000 and the insurance is around 1,000 (1years ncb, I'd be 20, male, witch is cheep if say)

But anyways if I pay for my insurance up front it's going to be around 1,000 if I pay monthly I'd pay around 2,000 (190 a month or so) in total the cars I want are priced around 1,500-2,000 and I was thinking how to get this cheeper? So I started thinking and thought what about a loan? I have semi good credit,

If I took a loan out for 3,000 for 1 year at 17.9%APR I'd be paying around 290 a month but with that I could get the car and pay my insurance straight up saving me a lot on insurance yeah I'd be paying 100 a month more then what I would on monthly insurance but in my eyes I'm paying 100 extra for the car? So to me that seams like a really clever idea? As all in all I'd be paying around 1,200 more then what my insurance would be if I paid monthly but that means I can then get the car for 1,200 and the insurance!

I mean I don't have the money to pay both upfront I could afford one or the other in 6 months but no point having a car with no insurance? And no point having insurance for a car I don't own?

So my plan is take a loan out for 3,000 pay 290 a month for a year then it's all paid off, yeah 100 more then what monthly insurance is but in the long run surly it is cheeper? Has anyone els done this? How did it go? Would you guys say it's cheeper in the long run or a better option?

Don't say save up as I cant but if I get the car after 6 months I'd have 3 months with no car meaning I can't get to work meaning I can't afford to save up for insurances?

I have a permanent job, family member owns the company so never ending work as the buissnes is very successful so deffo a permanent job! I have 500 a month spear after bills!

So what do you guys think is best?
Cheers!
__________________
The JayD Project!
JayDKirk is offline Reply With Quote Quote 
Old 13-03-2015   #2
Join Date: May 2011
Location: Norfolk UK
Posts: 7,454
Thanks: 329
Blog Entries: 8
Trader Rating: 0
United Kingdom 
Re: What do you think guys?

What car are you looking at getting?

In principal it's not a bad idea, but remember you'll need to get insurance next year as well, and it's still likely to be 800-900 so you'll need to provision for that.

Also remember to budget for tax Mot and repairs

As long as the cost of the loan is less than the cost of the insurance paid monthly then it's not really going to make a great deal of difference
__________________
For all my Punto and Punto Grande Instructional Videos Visit My YouTube page
MyNew Website is now at www.puntohowto.com
Or check out the Facebook Punto page
AndyRKett is offline Reply With Quote Quote 
Old 13-03-2015   #3
Join Date: Nov 2014
Location: England
Posts: 160
Thanks: 4
Trader Rating: 0
United Kingdom 
Re: What do you think guys?

A Mercedes SLK 2001 (around that year)

Right I'll built point this to make it easier to understand as that was quite confusing when I read it back,

Insurance
1000 (around) one payment,
190 (around) monthly payments

Car
1500-2000
Currently looking at one for 1,850
Comes with 12 month M.O.T

Loan
3000 for 12 months
290 a month for 12 months at 17.6%APR meaning I'd pay back more,

So the idea was take the 3,000 loan?
Buy the car for eg 1,850
Leaves me with 1,150
Buy insurance eg 1,000
Leaves me with 150

So if you can see where I'm coming from if I save up get the car I pay eg 1.850 in cash and then eg 190 a month for insurance

But if I go for the loan I'd have 3,000 meaning I can buy both the car and insurance in a one of payment and pay 100 more then the monthly insurance would charge and I'd have the car included?

So...
Without loan.
Save up 2,000 for the car
I'd then have to pay insurance monthly.

With loan.
Buy car.
One pay off insurance.
Pay 100 more then I would if I was to have to pay insurance monthly.

So for 290 a month I get...
A car.
A years insurance.

Or

For 190 a month I get...
Insurance.
And have to save up for the car.

So in reality I'd be like paying for my insurance monthly and a extra 100 for my car

If you see what I mean so what's the best option?

1) save up and pay monthly.
2) loan and pay 100 extra a month

Spear money a month Is 500
__________________
The JayD Project!
JayDKirk is offline Reply With Quote Quote 
Old 16-03-2015   #4
Join Date: Nov 2014
Location: England
Posts: 160
Thanks: 4
Trader Rating: 0
United Kingdom 
Re: What do you think guys?

Make it as simple as I can as I'm confusing lol,

Loan for 3,000
Click image for larger version

Name:	ImageUploadedByFIAT Forum1426467194.888336.jpg
Views:	21
Size:	352.9 KB
ID:	151395

The car (example)
Click image for larger version

Name:	ImageUploadedByFIAT Forum1426467328.144331.jpg
Views:	23
Size:	374.7 KB
ID:	151396

One pay off on the example car
Click image for larger version

Name:	ImageUploadedByFIAT Forum1426467389.785367.jpg
Views:	21
Size:	248.7 KB
ID:	151397

Monthly payments on the example car
Click image for larger version

Name:	ImageUploadedByFIAT Forum1426467426.215216.jpg
Views:	19
Size:	274.4 KB
ID:	151398

So do you guys think the loan would be a better option?
__________________
The JayD Project!
JayDKirk is offline Reply With Quote Quote 
Old 17-05-2015   #5
Moderator
Join Date: May 2007
Location: Manchester
Posts: 4,148
Thanks: 57
Trader Rating: 0
United Kingdom 
Re: What do you think guys?

Don't wish to pour cold water on your ambitions, but, have you also budgeted for repairs.

About 6 years ago we were looking at cars for Mrs. Beard and, as she only worked about 3 miles from home I had the "brilliant" idea of looking for something older but more interesting than the usual Eurobox. We became quite keen on a Mercedes 320CE and looked at several, the prize being one that someone else had first refusal on and which they eventually confirmed and bought.

This one was immaculate and the owner had a really extensive service file. But, all these cars had had almost every major, and quite a few minor components replaced. They'd all had head gaskets, and most had replaced fuel pumps; almost every suspension part including linkages; fuel injectors as well as complete systems; not to mention torque converters and even complete transmissions, and they were on top of the usual shock absorbers, springs, brake discs and pads, anti-roll bar drop links and tyres. All these from a car classed as bulletproof. Mercedes petrol engines are also not exactly the most fuel efficient either.

Conversely, there are quite a lot of independent specialists knocking around so repairs won't be a problem.....it's just the cost. If you really want something like this then I applaud you for your enthusiasm but, please, go into it with your eyes wide open and budget for 12 months ahead.

In the end, we bought an eight year old Alfa 156 which was very reliable so you can never tell.

Good luck matey
Likes Most Easterly Pandas liked this post
__________________
FIAT Forum Useful Links:
Donate to FF | Buy FF Merchandise | Classifieds | FF Insurance | How-to Guides


Last edited by The Beard; 17-05-2015 at 00:32.
The Beard is offline Reply With Quote Quote 
Old 21-05-2015   #6
Moderator
Join Date: May 2007
Location: Manchester
Posts: 4,148
Thanks: 57
Trader Rating: 0
United Kingdom 
Re: What do you think guys?

Reading Practical Classics today they mentioned the SLK as a car that has had plunging values of late and they reckon it's one to sell. What this means to the buyer is plenty of choice so take your time Jay and be picky.

There must be a "One careful/vicar/lady owner" car out there somewhere.
__________________
FIAT Forum Useful Links:
Donate to FF | Buy FF Merchandise | Classifieds | FF Insurance | How-to Guides

The Beard is offline Reply With Quote Quote 
Reply
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump
Similar Threads
Thread Thread Starter Forum Replies Last Post
Hi guys new on here - and need help URGENT please guys Antonvtr Newbie Central 0 06-12-2012 00:46
Hi guys new on here - and need help URGENT please guys Antonvtr Newbie Central 0 06-12-2012 00:45
(G) need help guys! t-jetfc Grande Punto 29 24-09-2008 12:24
(G) Really need your help on this one guys flexywozere Punto (Mk2/2b) 12 14-09-2008 07:26