Buying a new used car... someone give me a talking to.

[quackojuliet]

I'm looking for some advice as I've tied myself in knots over this decision.

Background - I'm 20 weeks pregnant, have just had to scrap my 18 year old vw polo as it was getting very rusty (sob) but I'd had it for 18 months and learnt to drive in it.

I need a car for work (teacher) so the pressure of end of holidays approaching means I want to seal a deal quicksnap.

Obviously we are thinking of the baby, and ideally want something for the next 3-5 years. So good for a small child and hopefully, another baby to toddler.

I'm taken by the Honda jazz (reliability wise) and have put a deposit on a 2008 model at the dealership. I feel like a sucker for going there as it's the most expensive place to do it but the assurance that the car is clean must be worth something?

Due to my advancing pregnancy, needing the car for work urgently and the likelihood that cash will be very tight on maternity and then part time work after that, I'd like to put down a chunk of our savings, 'emergency budget' for a car that is going to cause us few headaches. Hence I'm wary of an older car that will need regular trips to the garage and leak money.

We have a 6.5k emergency fund but as DH's job is not very secure I want to keep at least 3k aside for worst case scenario job loss.
So have 3.5k to spend, then could put up to £100 per month for finance.

The Honda at the dealership is £6500 and 2008 with average mileage. Haven't looked it over yet. It just seems so much money!! (My first car cost £550 )

Feels like this is eye wateringly expensive - is it? Private sales for the same car seem about £5000-6000 but I'm wary of spending that kind of money at a risk. DH is learning to drive so isn't much help at this stage - I should add - this will be his first car...

Sorry for the essay! Do I just need to grow up???!

and have put a deposit on a 2008 model at the dealership.

It was a bit rash to put a deposit down and then work out if you can afford it. If you decide you can't afford it, are you willing to walk away and lose the deposit?

Haven't looked it over yet.

Especially without having even viewed it!

£6500 at a dealer compared to £5000-6000 private is about right; if you're buying from a Honda dealer (not a car supermarket type of place) you're likely to get good aftersales support. I do begrudge the extra expense, but tend to buy from dealers/traders for additional comeback and piece of mind.

I'd consider getting a bank loan to fund the balance, rather than dealer finance:

• bank rates are usually cheaper than finance companies
• you can borrow a higher amount for a lower rate (e.g. you can get a better rate by borrowing >£5K, rather than £3.5K)
• it's usually easier to pay off lump sums (or the whole balance) if you get the chance
• the loan isn't tied to the car so you can sell at any time, if the need arises (selling can sometimes be a hassle if there is finance attached to the car)

Wmittens,
Thanks for your advice on the loans. I'll talk to my bank and see how it compares.
Fortunately the deposit at the honda dealer is refunded if we don't go for it,although I'm sure there'll be a hard sell.

How many miles.....honda are expensive used compared to say a ford focus as they have a good reputation for not needing repairing. Listen you will not miss an old car that breaks down. I am the same...always had old cheap cars that dbroke down a lot and it is a joy to have a more new car that needs less work. Honestly I think that is the norm for a used car...we are looking and even old Hondas are not cheap. But look around....so where we are for example Hyundais and Kia are cheaper than honda but honda are very reliable. We are going for older like 2006 for about 3000 quid but this will be our second car. Our other car is 2009 and cost about 7000 when it was two years old with 44 k on the clock. From a dealer and stuff has still gone on it so you can always pay a mechanic 20 quid to give a car the once over check if you go private. That could save you 1000 on the dealership price.

Have they offered you any sort of extended warranty? Hondas have the reputation of being extremely reliable, but an extended warranty or servicing offer might well be worth a bit of money to you.
If you're looking for something that's going to last, and hopefully not give you any problems then, yes, I would recommend going to a dealership, particularly since neither you nor your husband knows a great deal about cars. But don't be frightened to haggle. Try and beat them down a little on the price, or sort out the tax disc for you (not sure how much it would be), and make sure you've got a good long mot if you possibly can.