To pay so much for a car on finance?

[CaulkheadUpNorth]

I've been quoted for a finance deal which includes two years warranty, three years service and mot. It's a two year old car, with 21,000 miles.

The amount I've been quoted is high due to having defaulted on two accounts four years ago. It stays on credit report for six years.

The amount I've been quoted is nearly 20% of my post-tax income. If I take away all my rent/bills etc it would be a third of my disposable income.

Aibu to get the car? My job changed in May and I'm really struggling without a car. It's possible, but hard and disadvantages other people.

Buy it,

you have convinced yourself you need the car....

but its 4 miles... but its 2 trains.....

enjoy your 5 years of debt and expense.....

As I said previously how much would taxis cost when you needed them!

and surely you could claim taxis back as a business expense.

remember if your employer goes under or cuts your hours or reduces your role your car still needs paid for

( hire a car for the festival - for the 2 days you need to be there)

When you took on the new role at work was it with the understanding that you would have a car. I know with some jobs they do stipulate that you have to have a car to do your job and won't give you the job if you don't.

If not it seems that you are having to go to all the expense of getting a car which is more for your employers needs that yours. They don't seem to have much money but then neither do you.

monkeyfacegrace - you do live in a land different from most of us mortals if you think that 9K is not a lot for a car....

obviously, not a lot if you can afford it!

if you can't 4K, 6K or 9K - it's still a lot

Look at OP's salary!

She was planning to buy a car which would cost her 9x her monthly take home salary!!!!

Noone in their tight mind would make such big sacrifice and take this kind of risk if it can be avoided.

Yeah IME someone in the church will have a tidy old car they would let you have for peanuts.

Good point above

your car will cost essentially a years wage when it's more for your employers benefit

Add the cost of 5 years fully comp business insurance and gap insurance to the cost of the car.

Get a quote.

I would expect business insurance on a car for a driver with no no claims and a expensive car to be best part of a grand a year

I have done finance - never again.

I really did need a car - my commute was an 80 mile round trip - public transport would have taken a total of 6 hours each day. With the distance, and type of road I was driving on I needed (maybe wanted) something I felt safe in. I did however get the most basic car I could, no fancy extras.

I got trapped in with excess mileage, so traded to a new car to avoid paying it. At the end of this contract I will be taking a loan to cover the 4K final payment so I can escape (I have managed to save some towards the final payment so will probably just borrow 3K, likely on my virgin 0% money transfer card). For anyone saying I should walk away and buy a cheap second hand - the excess mileage bill effectively means I'll be buying my car for £500.

I don't actually need a car now as I work closer to home - my commute by public transport would take twice as long as the drive but I'd rather do that than get stuck into more finance.

It is a real burden, and that is with payments that are only 10% of my take home salary. I worry about things such as if I got pregnant - it would be a huge burden on our reduced income.

I am a high-earner, and until very recently I would have said 9k is more than necessary for a car, however that view is partly to do with priorities. I don't think you should spend more than necessary on a car unless your mortgage is completely paid off and you have enough savings to pay all your bills for the rest of your life.

Being a contract worker who always half-assumed that the current one-year contract might be the last income I'd ever have also influenced my outlook.

My previous two cars were on average 4.5 years old when I bought them, cost about 6.5K each, and were kept for roughly ten years each. I could fund their purchase out of one or two month's after-tax income. (The reason for mentioning that is that I didn't need to go as cheap as I'm suggesting the OP does.)

until very recently I would have said 9k is more than necessary for a car

To be clear, I still think 9K is more than necessary for most people. What's changed is my personal circumstances, not my opinion.

Thanks for all the replies everyone. I'm off to see a £2000 8 yr old car tomorrow and one for £1100 of a similar age.

Insurance is through a company who specialise in it for church workers/clergy so that's okay.

Sadly no one at church is able to have anything going. I think we have about six cars throughout the tiny tiny growing congregation.

3 years of finance on a 2 year old car is too risky IMO. You'd be paying monthly what some people pay for a new car when your car is almost 5 years old (which for a Citreon, is verging on banger territory).

Unless you have very low costs, £200 a month is a huge amount on your income. I remember having car finance payments of £90 when I was earning £1200 pcm and on tight months thinking it was enormous (and that was back in the day when the rate I was paying was less than the money in my ISA was earning as cars weren't shifting).

It also sounds like you have very cheap rent / bills - can that be guaranteed going forward? Also if you aspire to home ownership and have no savings, tying up such a big chunk of your disposable income seems unwise.

Finally what are your prospects at work / how secure is it? If you were say, on a graduate scheme in a reasonably paying profession you might be able to take a punt on future earnings, but for a charity - will your earnings keep up with cost of living, much less increase? The way pay increases have been going recently, you might really appreciate that £200 in 3 years time.