aibu to buy a new car?(97 Posts)
I am a single mum of two. Have been for four years. I have worked the entire time, four days a week at around £10k a year. I get dla for ds1 (aspergers) and some housing benefit as well as tax credits. I budget well, and try and spend wisely.
My car is ancient. Twelve years old, 135k miles. It has been patched together so many times it is a money pit. It will fail the new style mot in the summer. It is making a funny noise when I steer, and when I break. It is on its last legs unless I put about five hundred pounds into it.
I have found a deal on a brand new small cheap picanto for me and the two boys. It's safe, reliable. It would need no deposit and cost me 170 amonth - more or less the dla money. Until October I pay £150 a month on a bank loan from my marraige breakdown four years ago. Come then it will be only twenty quid a month more. And i wouldn't need to use the dla money anymore. (I also get csa money which isn't allocated to anything as although some weeks its regular, others its not)
I need a car for the boys to get to school (rural setting) and me to work. I need it for ds's various clubs for his aspergers (he does to one every other day)
I could extend my bank loan, but would mean I would have to get another seven or eight year old car. This new one would be zero road tax, and insurance and breakdown is included for first year. It's also got seven year warranty and no mot needed. If I get another older car it could end up a money pit like ky current one.
But I have been made to feel I'm out of order for buying new. That being a single parent in social housing receving benefits and tax credits, although I've worked continously since i was 16 and am studying for my degree as well as working a four day week, i shouldn't be getting finance or anything. And I know it will cause raised eyebrows and commets at the school etc.
We've had a mixture of new and nearly new over the years. Our family car needed replacing earlier this year as it wasn't worth spending the £'s on it to keep it safe and reliable for a few more years. We looked at nearly new and various car loans but went for new because of a finance deal that worked for us. I'm very happy
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YANBU I live in the sticks and unreliable money eating cars are ridiculously stressful.
I've had one brand new car and between us DH and I have had 3 one year old no MOT good warrantee second hand ones.
In your position I'd take what ever gives you an affordable finance deal to get a stress free, under guarantee set of wheels.
Go onto contracthireandleasing .co.uk They cover most companies and are easy to compare.
Think the Kia was just over £100 a month
Can just put in the mileage you want and search the best ones
Certainly worth a look see!
You do what you need to do with what you have. No judgement from this callsign.
Don't fret about the old car, get rid and forget. There is nothing to be gained from thinking about it.
If you can't get stamps anymore you could 'piggy bank'. I have a number of accounts, with transfers set up. I am paid monthly so a few days in to the month various accounts get paid in to. ie car (mot/tax/servicing/small amount offset increases or work) and OU (I'm studying for a degree with them)
A new car shouldn't need any major work for a good few years, I thnk you said 7 years warranty, but you need to check what is covered.
For piece of mind, do you know anyone who can help you check over your finances with you?
Also, how long does this deal go for? Could you run your current car in to the ground, buying you time to build up reserves a little?
Sure, back to your original question, sod what anyone else thinks! (And yes, I do include myself in that.)
Good luck, if you don't mind the expense a 7 year warranty is rather nice to have!
But thank you for all your suggestions. I am honestly going to look into all of them again tomorrow and make sure whatever decision I make is right for me - and ignore the original part of my AIBU which worried about other peoples opinions if I do go for it.
It may be this deal is for me. It might be that someone else gets a new car this weekend and theirs is on autotrader for me tomorrow. Or it could be that I just stick my head in the sand <joke>
But now I have more ideas, about 2nd hand, makes, models, deals and leasing. Just to add a few more grey hairs ;-)
WMittens, this deal has no arrangement fee, no option to purchase fee and has been based on my 9000 mileage, so I have looked at those bits. I also dont pay anything until a month after I take delivery of the car - and that is a standard payment, no double payments or extra admin fees or anything. I double and triple checked that. I have spent days and days looking at all of this, and trying to work out the best thing finance and money borrowing wise. I've even entered competitions to win cars <stupidly hopeful> but alas, no joy.
I guess I just hope that if I go new, I eradicate all the problems with my current car, that could strike again with a second hand where you dont know the history. Nothing worse than ringing work yet again to say you'll be late for a meeting because your car battery has blown again, or (and this did happen) your spare wheel has fallen off and rolled down the hill causing you to chase after it, or your handbrake has failed again etc etc. I have so much stress in my life with juggling the kids and work and DS1's groups and Uni I just thought, is it worth the depreciation and the extra money to get something to eradicate that bit of stress for a few years.
I'm only going off Internet figures as that's all I've got access to at this point; you haven't mentioned the arrangement fee, option to purchase fee, GFV/final balance or excess mileage charge, so I'm working with what I can.
The point I was making about the loan doesn't apply in your case, if it's going to affect your benefits. It's simply down to banks giving lower APRs on larger amounts - e.g. 7.9% up to £10,000, 5.1% up to £15,000, etc. Borrow more, have a lower APR, put the remainder in a savings account to get (a little) interest. It works out cheaper than a smaller loan if you're disciplined (and if it isn't going to negatively effect your income, as it does in your situation).
We buy any car dont like my car. I only have 1 key. It has bodywork damage. It used to be a lease car. All things that to them make it worthless!
Lazaruss, I do already do the money aside - but I cant afford the money aside for big mechanical problems etc. But I do budget my insurance monthly (at a premium sadly) and timed my car tax to be the month I dont pay Council Tax, my MOT after my birthday so I use any gift money I get for that and its when I'm not at work so if its off the road for a week its not so much of an issue. I used to use post office stamps to save for my car tax till they told me they didnt do it anymore?
I always try and have a little left each month for "blips" - this would just swallow that for a couple of months. Which means crossing my fingers my fridge freezer and washing machine that I have lovingly maintained for 10 years dont die on me!! I WILL get them through another year ;-)
On the subject of scrappage, I'd get more for my 16 year-old car that way than through webuyanycar who offered me £50.
Fifty pounds! I was insulted on behalf of my poor car.
With reference to depreciation, it's only relevant if you ever plan to sell it. Our main car was brand new when we bought it and we intend to be its only owners. (I've never sold a car other than for scrap as our previous ones have all been old bangers we've bought for cheap and driven til they died. This one will be no exception.)
WMittens, Honestly my car is worth jank to be frank. It needs steering done, antiroll bar stuff done again, the gear box done. It is unsafe. It has dents and scratches from having been crashed into a wall and hammered back out a few years back. It is honestly worth the scrap value - we buy any car offered me £90 from memory!!
The finance example I have in front of me states the 9000 miles a year that I told them. I'm not just going off figures from the internet. I will of course be double checking it though. A friend of mine got a much better deal than I will ever get - but because she had a 4k deposit.
I'm not able to have £10k in my bank long term. Certain income I have, such as my rent benefits, is restricted on my savings etc. And surely taking out a £15k loan (which I did years and years ago at £249 a month for 7 years or something from memory when interest rates were different) on my limited income would be rather irresponsible? This way I am borrowing a top figure of what, £5k? I'm sorry but I really dont understand that point you made.
Littlehouse, I agree. No car should have had the problems mine has had. I borrowed £3k for that car. And adding it all up I have spent around £550 a year maintaining it for 4 years :-(
I've not read pages 2 - 4.
Buy the car if YOU think it is worth it and you can afford it. Ignore what anyone else thinks. You don't have to justfy what you spend your money on.
Old cars maybe cheap to buy, but they can be very expensive to maintain.
You need a car you can rely on.
If you buy new, the car is yours. You take care of it and it will go for years without yo uhaving to put in any more in to it.
Also a new car may be cheaper to insure/tax.
A tip from my own life. I put aside (each month) money to cover insurance/mot/servicing/tax. It keeps my finances clear of 'blips'.
I just read your last post, I would definitely go for a new one with the intention of keeping it 'forever' but I would most certainly research and ask advise about makes/models that are reliable and go for that, that would be my number one priority.
A car really should get beyond 12 years old without all the problems you've had. Even if it means paying more for something more reliable.
No advise on what to choose though as have no idea about that.
Just seen that you do up to 9000 miles a year - if your deal is similar to the Kia example I saw, your finance deal could cost an extra £1341!
On top of interest, admin fees etc. it could get close to £11K by the end!
My car has been valued at £130 scrappage.
That's because scrappage only goes on the weight of the metal in it. Why the hell would you scrap it? You'll probably get three times as much on eBay, webuyanycrap.com would give you more as well. Scrapping isn't the only option.
How many miles do you do a year? I've just looked at a Kia finance example and it's restricted to 6000 miles per year.
In terms of credit, you don't have to borrow e.g. £5000 just because the car you're buying is £5000; you could borrow £15000, get a lower APR and stick £10K in the bank, and using it to pay off the higher monthly repayments.
Wmittens sorry to disappoint you, but she is an X Type I needed an estate to fit my big dog into. She is still stunning though!
Littlehouse, thats my aim, to buy and keep. I am never ever going near Peugeot again thats for sure!! I've had 15/16 year old Corsas go and go, but this has been a sinking ship for a while.
WMittens, I have looked into GAP insurance as well, its on my list. As is if I take up their deal on the first years insurance checking about excess and protected no claims.
I do around 8-9000 miles a year town driving. Very little further than that. My insurance even with 9 years no claims and 11 years driving with a clean license is stupid money, but thats because of where I live sadly. I'm not sure with the 8-9000 if leasing is worth it or not.
Yes it depreciates- all cars do.
Not true, but it's got to be interesting enough for there to be demand; admittedly your average shopping car isn't going to qualify.
WMittens, my credit is fine. I mean for my monthly outgoings. This finance is done on a 60/40 deal - you pay 60% over the three years like a lease, but at the end you can either refinance the remaining, or hand car back, or trade in etc. So the initial finance is a smaller amount than it would be if I bought outright, and not as long a commitment - and on an apr of 4.9% which my bank cant get near.
Credit cards, well to get one with that kind of limit would be difficult surely? My current card has a top limit of £4k. (and is a card Ive had a while so apr isnt great, I need to switch tbh, even though there is very little on there)
There just dont seem to be the decent cars, with the safety ratings etc, out there on an affordable monthly payment when I have no deposit. My car has been valued at £130 scrappage. The only places when I rung up and enquired locally which would take on low finance apr with little or no deposit were the main dealers of Vauxhall and Kia. The smaller garages wanted either a larger deposit or a higher apr.
Jackstini who do you lease through at £60 a month for a C1? I need 5 seats (shared school runs) so cant go that small, but at that price it could be an option.
Ah, I was hoping it was an XJ. Is it an X-Type or S-Type?
Why buy at all?
Have you looked at leasing a new car?
Having worked out the difference between depreciation and lease costs we have leased our last 4 cars.
The leasing costs are the depreciation - you pay for the loss of value plus finance house profit.
Doesn't have to be a big car either - you can get a Citroen C1 for under £60 a month.
For that sort of deal it's going to be, what? 6+36 months or 6+48 months and 5000 miles p.a.? Also, leasing ties you in to the deal, at least with PCP you can get out of it at any time, if circumstances change.
Whichever way you crunch the numbers (and I've done a lot of crunching!), driving around in a new car will cost what a new car will cost - there's no way around it, just shuffling numbers.
This has just reminded me of another point - GAP insurance. Add that in to your calculations - if your car is written off in an accident, you owe the difference in value and the balance of the lease.
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