First time financing

Rolli

Myself and the OH are thinking about financing a car in the new year (2012 Reg)
Its our first time buying a car on finance and to be honest, we know nothing.
We both have very secure jobs and our income, combined (per month) is just under €7K. The only thing we're worrying about is paying a pretty big mortgage and then paying finance on a car. But what I want to know is; how much would we be able to spend ? I was thinking €30K ? Could be way off though. We also have a trade-in, if its accepted. Its mostly my OH who wants this. I can tell that I'm going to get a million comments saying "Why would you want to finance a car if you have a mortgage" ? Well, my car is too impractical..Thanks

unkel

Maybe I'm wrong, but I get a feeling you are not convinced you should be getting a loan to pay for the car. What car do you have and what kinda car do you need? What's the annual mileage you will be doing and what brand new car were you thinking of buying on finance?

MugMugs

Is a brand new deprecating machine more practical or would a second hand car also be practical.

gerryo777

Rolli wrote: »

Myself and the OH are thinking about financing a car in the new year (2012 Reg)
Its our first time buying a car on finance and to be honest, we know nothing.
We both have very secure jobs and our income, combined (per month) is just under €7K. The only thing we're worrying about is paying a pretty big mortgage and then paying finance on a car. But what I want to know is; how much would we be able to spend ? I was thinking €30K ? Could be way off though. We also have a trade-in, if its accepted. Its mostly my OH who wants this. I can tell that I'm going to get a million comments saying "Why would you want to finance a car if you have a mortgage" ? Well, my car is too impractical..Thanks

Think of it this way, You buy a car for €30k, drive it off the garage fourcourt and its now worth €25k, a year later and your lucky if it's worth €20k. Trust me, I've did this too many times. You'd be far better off buying a 1 or 2 year old car and let someone else take the big hit..
I bought a 2 year old BMW 3 series with 28K miles, full leather etc etc and it was €18k cheaper than a brand new one.

Rolli

Rolli wrote: »

...............
We both have very secure jobs and our income, combined (per month) is just under €7K. The only thing we're worrying about is paying a pretty big mortgage and then paying finance on a car. .............

If ye have €7k/month after tax to play with even if the mortgage is €3k/month I can see most finance folk being quite happy financing ye €30,000 over 5 years without batting an eye really.

Only you can decide should ye though, if ye have a decent lash left over each month and that decent lash would comfortably cover the car finance with some left over still than it may not be too bad an idea in so far as it's responsible enough borrowing.

I'm struggling why a couple with €7k/month would have one of them posting on a motors forum wondering is borrowing €30k for a car a good idea though to be honest.

Rolli

unkel wrote: »

Maybe I'm wrong, but I get a feeling you are not convinced you should be getting a loan to pay for the car. What car do you have and what kinda car do you need? What's the annual mileage you will be doing and what brand new car were you thinking of buying on finance?

The last thing I want is a big 25-30K loan! I'm driving a 04 Lexus GS300, and its killing me trying to keep it on the road, what I'm ideally looking for is a diesel.
I do about 20-27 K miles per year (Drive to the UK for work sometimes)
Hopefully, an E90 3 Series or A4

CiniO

Instead of taking a loan for 30k, you might as well try to save 3k a month for a car. (with 7k a month I assume this can be done), and then after half a year you can buy a car for 18k. It could be the same model as the one you were thinking of, but 3 year old instead of brand new.
After this 6 months, you will have a nice car, and no loan to pay off.

That's my way of thinking.

I would never borrowed money for something that is not going to make more money (or at least for something that I would think is going to make more money). What's the point like?

Rolli

CiniO wrote: »

Instead of taking a loan for 30k, you might as well try to save 3k a month for a car. (with 7k a month I assume this can be done), and then after half a year you can buy a car for 18k. It could be the same model as the one you were thinking of, but 3 year old instead of brand new.
After this 6 months, you will have a nice car, and no loan to pay off.

That's my way of thinking.

I would never borrowed money for something that is not going to make more money (or at least for something that I would think is going to make more money). What's the point like?

Well, we don't have €7K, we pay tax on that, a mortgage, and normal household bills. But, that is a good idea

Rolli

RoverJames wrote: »

I'm struggling why a couple with €7k/month would have one of them posting on a motors forum wondering is borrowing €30k for a car a good idea though to be honest.

I think we both know its not a good idea.

MugMugs

Eh, why are you asking then? Buy a good second hand motor and a new car smell air freshner and with the 10k you save pay off your mortgage or have a nice holiday or do both.

mickdw

A new diesel in the region of 30k is most likely not going to rob you. Take a passat for example, they appear to cost about 14k to change every 3 years with normal mileage etc. This is not a frightening amount of cash and you also have the benefit of no unforeseen costs for repairs, great fuel efficiency and low tax compared to the gs. You would nearly half your fuel costs I'd say.

Rolli

MugMugs wrote: »

Eh, why are you asking then? Buy a good second hand motor and a new car smell air freshner and with the 10k you save pay off your mortgage or have a nice holiday or do both.

Well, my original question was..."Roughly, If anyone knows, how much would I get to spend?"

I don't know if I'll get a €30K loan

Rolli

Rolli wrote: »

Well, we don't have €7K, we pay tax on that, a mortgage, and normal household bills. But, that is a good idea

€7k/month pre tax is a tad different, I can appreciate why you're hesitant. Sit herself down and make the case for the nicer holidays, more meals out etc that could be gotten instead of a €20/€30k car loan

Show her online all the lovely cars that €10/€15k will buy nowadays

Rolli

Rolli wrote: »

Well, my original question was..."Roughly, If anyone knows, how much would I get to spend?" .............

Well presuming ye have no major outgoings such as kids etc it's easy for anyone to determine a ballpark net income allowing for a fudge factor for BIK for health insurance and also pension contributions etc, however as your mortgage repayments and other credit criteria are unknown (and none of our business) it's not easy to quantify what sort of loan ye could get

barura

If you have a mortgage, please don't burden yourself with another loan. The best car(in your case)to get is one 2-3 or even 4-5 years old. You'll lose way less and if you get it from a dealer you can get warrentys and all the good stuff as well. You can proabably put the money together comfortably in a few months.

What car do you want? People carrier? Estate? Roadster? So many questions can be asked.

Rolli

barura wrote: »

If you have a mortgage, please don't burden yourself with another loan. The best car(in your case)to get is one 2-3 or even 4-5 years old. You'll lose way less and if you get it from a dealer you can get warrentys and all the good stuff as well. You can proabably put the money together comfortably in a few months.

What car do you want? People carrier? Estate? Roadster? So many questions can be asked.

Ideally; Diesel, Saloon (Or estate), 1.8 - 2.2 maybe 2.5 litre, something like an E90 3 Series, A4, S40...

barura

Rolli wrote: »

Ideally; Diesel, Saloon (Or estate), 1.8 - 2.2 maybe 2.5 litre, something like an E90 3 Series, A4, S40...

How many miles are you doing per annum? Diesel might not be the best choice if its less than 20k. Are you planning on having kids any time soon or will that be when you're changing car? Do you have animals?

Sorry about all the questions!

I was reading up on the skoda octavia estate (combi), 4x4 and a 2 litre diesel that is about 30k for the elegance model. That would be quite a keeper if you were planning on expanding your family and wanted to have fun with the AWD in the meantime. And in ice it would be handy too if you live on a hill.

Rolli

barura wrote: »

How many miles are you doing per annum? Diesel might not be the best choice if its less than 20k. Are you planning on having kids any time soon or will that be when you're changing car? Do you have animals?

Sorry about all the questions!

I was reading up on the skoda octavia estate (combi), 4x4 and a 2 litre diesel that is about 30k for the elegance model. That would be quite a keeper if you were planning on expanding your family and wanted to have fun with the AWD in the meantime. And in ice it would be handy too if you live on a hill.

I do about 24K per year, and drive all over Ireland and sometimes over to the UK. We're not planning to have any kids at the moment, but I plan on keeping this for 5-6 years, so we will have kids when I still have this, and I have a Doberman, but if we're taking the dog anywhere, we put it in her car.

barura

I'd check out that Skoda I mentioned, it would suit you to the ground I think. Then again, it;s your ballpark! It's up to you! They do trade ins an 0% finance on some cars, perhaps you can strike up a deal?

I'm afraid that's all the help I can be, but it's up to yourself to crunch the numbers and figure out what car you want. Just remember! It's you who is buying the car, take your time and don't be afraid to haggle. They need to sell their cars and you don't have to buy them, never ever forget that. And there is PLENTY of cars in amin dealers, don't get fixated on a car being "the one".

Best of luck and I hope it works out well for you!

Rolli

barura wrote: »

I'd check out that Skoda I mentioned, it would suit you to the ground I think. Then again, it;s your ballpark! It's up to you! They do trade ins an 0% finance on some cars, perhaps you can strike up a deal?

I'm afraid that's all the help I can be, but it's up to yourself to crunch the numbers and figure out what car you want. Just remember! It's you who is buying the car, take your time and don't be afraid to haggle. They need to sell their cars and you don't have to buy them, never ever forget that. And there is PLENTY of cars in amin dealers, don't get fixated on a car being "the one".

Best of luck and I hope it works out well for you!

Thanks, I really do appreciate that, I'll definitely check out that Skoda.

barura

Rolli wrote: »

Thanks, I really do appreciate that, I'll definitely check out that Skoda.

Don't be afraid to check out more than that!

And that also means second hand! Full valet and service costs a lot less than depriciation!

But, again, it's up to you!

Jee I can't spell when its late!