What have I done - is this pathetic money management.

(29 Posts)
mulranno Wed 24-Oct-12 18:36:56

Today I bough a new car with a balloon payment financing deal at 5.8% APR. I have never bought a new car - but my old 2lt 7 seater wagon just drinks petrol costing me £80/week just to get to work. I dont ferry my kids around anymore and drive this empty bus to work on a minumum 3hr round trip each day 5 days a week. My thinking was that I would buy a small used car which would halve my petrol costs and the savings would pay for the loan to buy the small car - (wagon worth £500! needs £3k work) - so thought I wuld buy something for 7ish with a tesco loan so monthly payments would be £160 (petrol saving) - but got seduced at the garage by a new car £11k but managed to neg it down to 9,800 and it "ONLY" costs £154/month on their finanacing deal - but after 4 years need to give it back or pay £4k -- I have never done ths before. Is it just the same as getting a loan from Tesco - or is there a catch?

higgle Mon 29-Oct-12 12:09:00

I work for an organisation where most of the staff get about £200 fuel payments a month and need reliable cars for work. Many of them have a Citroen C1 or small peugeot on PCP finance. Their mileage payments cover the payments, they are cheap to insure and run and after 2 years tey start a new agreement. It is a relatively hassle free way to be sure you have reliable transport.

How did you get on op?

mulranno Wed 31-Oct-12 22:51:40

Did well actually, went back to dealership to cancel the lot - finance, new car order etc applied for cheap tesco loan and started looking at used on autotrader - but then got a call from the dealer to say they had a cancelled order (sign of the times) - so they had a new car with 10 miles on the clock and technically one previous owner as was registered to him - so I got it after haggling for 9000 when new is 11,400 - pick it up next week. My petrol saving will pay the loan -- delighted -- so thanks everyone for slapping me back to reality.

roxannedetierro Thu 22-Nov-12 10:05:48

Message deleted by Mumsnet for breaking our Talk Guidelines. Replies may also be deleted.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now