Recommend a car for hire purchase deal

marcl

Hey guys, first time posting here so go easy on me

I am about to buy my first car, and have been looking at finance for it. Now i'm having a bit of a problem, I wanted to spend around €10k on the car but looking at how much I can afford to repay per month I need to come down closer to €8k and repay it over 4 years.

Have been told that to go for hire purchase the car will have to be less than 8 years old after the repayment period. So the car will have to 08 or newer to be allowed to be purchased under hire purchase. Also the car has to be bought from an SIMI dealer.

So now i'm having a problem finding a car which is 08+ for €8k or less. I want something with a bit of power, and isn't too small, i.e no polos, fiestas, yaris's etc. I would say i will be going diesel as i'll be doing about 30,000km a year.

I was thinking something along the lines of whats linked below, but i've heard the 1.8 engine isn't the best, and i'd be better off looking for a 1.6, only problem then is the 1.6 is more expensive.

http://www.carzone.ie/search/Ford/Focus/STYLE-1./29513452049339140/advert?channel=CARS

My other option would be to spend €7k and just get a personal loan, then i won't have any of the issues of the 8 year rule, the only problem then is that the cars start to get a bit older and i'd prefer to stay around 06 or 07 if i can so still i'm having issues. Like i'd love something like a 3 series or an A4, but none of them are in budget.

Any help much appreciated

-Corkie-

First and foremost do a search about that dealer. The word bargepole springs to mind..

MugMugs

OP please stay.clear of HP. Speak to your credit union. HP is going to.cost you an arm and a leg in the long run. Further to that, 8 years is a hell of a long time for a loan.

Without wanting to come across as abrupt, if you can't afford it then don't get it.

colm_mcm

8 is how old the (4 year old) car would be at the end of the (4 year) loan


It's all great paying so much per month while you have a relatively new car to show for it.
Novelty wears off though.

MugMugs

colm_mcm wrote: »

8 is how old the (4 year old) car would be at the end of the (4 year) loan

My point stands on HP.

I've only seen one decent offer from VAG but at that it can be matched by a CU

LLU

HP is the motoring equivalent of a sub prime mortgage. It serves to exploit people who can barely afford to buy something, screws them completely if they run into any difficulty paying along the way, and leaves them with feck all at the end even if they make all their payments in full.

colm_mcm

Can anyone get a cu loan or do you have to be a member for so long and save, or can you just get a loan?

colm_mcm

LLU wrote: »

?.. and leaves them with feck all at the end even if they make all their payments in full.

you get the car at the end

MugMugs

colm_mcm wrote: »

Can anyone get a cu loan or do you have to be a member for so long and save, or can you just get a loan?

You're required to be a member and must have a certain % of the loan in.shares. or have a good history with them. Ie: take out a small loan and repay it using the loan money. Build a good history with them and show them you're good for it. Generally then loans are easier got.

HP really is the root of all evil in the finance world and the only winner is the company.

marcl

Ok i don't know to much about HP but it is by far the cheapest form of finance I can get
For example I can get a graduate loan at 9.9% but can only borrow €5k so thats a none runner, I can really only get a personal loan at 13.8% or HP at 10.3% APR

So basically a €8k HP deal will cost me €9,582 for the 4 years
While a personal loan will cost me €10,294 give or take for the 4 years

Granted the issue with HP is that you have to pay a fee if you decide to change car and you have to carry the hp over to the new car but that isn't a major issue for me.

I'd love to be able to afford to pay for the car with cash but that isn't possible as I'm only going to be starting my first job in 2 weeks so savings aren't exactly great right now.

marcl

-Corkie- wrote: »

First and foremost do a search about that dealer. The word bargepole springs to mind..

Its more the type of car i'm worried about really, that one linked above is just an example of a 1.8l focus within budget, there are a few others aswell, granted they all could be barge poles

Guy:Incognito

MugMugs wrote: »

HP really is the root of all evil in the finance world and the only winner is the company.

Its a car loan thats secured on the car. If your paying similar to a different type of finance that you have the option of getting (comparing it to somthign the OP cant get is pointless) whats the difference?

MugMugs

Guy:Incognito wrote: »

MugMugs wrote: »

HP really is the root of all evil in the finance world and the only winner is the company.

Its a car loan thats secured on the car. If your paying similar to a different type of finance that you have the option of getting (comparing it to somthign the OP cant get is pointless) whats the difference?

MugMugs wrote: »

Without wanting to come across as abrupt, if you can't afford it then don't get it.

That.

Guy:Incognito

MugMugs wrote: »

That.

You said stay away from HP but told him to go speak to a different institution about a source of credit.
.

Theres nothign wrong with loans you can afford to repay btw.

marcl

MugMugs wrote: »

That.

thanks for your opinion. If you can't offer advice about the question asked then don't bother commenting
I only want to find the right car to buy for 8k under HP.

Right anyway
Can anyone please offer advice on what car to buy?
Requirements

08+

8-9k hopefully could get a bit of cash discount as i'm buy straight and i may be able to put 500 or 600 quid with it myself. So really i'm looking at cars around 9k on carzone, would this be about right?

Has to be diesel

Has to be reliable

Preferable some bit of poke, i don't mind paying up the extra tax of say a 2l

MugMugs

Guy:Incognito wrote: »

MugMugs wrote: »

That.

You said stay away from HP but told him to go speak to a different institution about a source of credit.
.

Theres nothign wrong with loans you can afford to repay btw.

And I.said there was? Finance companies from my experience are ruthless and beyond negotiation should the worst happen. There is no reasoning with them and they will seize your vehicle and sell it for little to nothing whilst still pursuing you for the balance. A credit union / bank will at least negotiate and not look to.stiff you as soon as you run into financial trouble.

Guy:Incognito

MugMugs wrote: »

And I.said there was? Finance companies from my experience are ruthless and beyond negotiation should the worst happen. There is no reasoning with them and they will seize your vehicle and sell it for little to nothing whilst still pursuing you for the balance. A credit union / bank will at least negotiate and not look to.stiff you as soon as you run into financial trouble.

A credit Union or a bank will be more willing to work with you because the loan isnt secured on anything. They are relying on you paying them back with their only leverage being your credit rating.
Theresno advantage to a finance company (often just one of the normal banks anyway) dragging out the situation with a non paying customer and a fast depreciating asset.

marcl

MugMugs wrote: »

And I.said there was? Finance companies from my experience are ruthless and beyond negotiation should the worst happen. There is no reasoning with them and they will seize your vehicle and sell it for little to nothing whilst still pursuing you for the balance. A credit union / bank will at least negotiate and not look to.stiff you as soon as you run into financial trouble.

Well being honest i wouldn't be the type of person to blame the finance company for seizing my car if i don't keep up the repayments. Thats just my tough luck. I'd prefer to be paying less over the 4 years than being worried that my car is going to be seized. Its not exactly the greatest attitude to have when going out buying something

MugMugs

Guy:Incognito wrote: »

MugMugs wrote: »

And I.said there was? Finance companies from my experience are ruthless and beyond negotiation should the worst happen. There is no reasoning with them and they will seize your vehicle and sell it for little to nothing whilst still pursuing you for the balance. A credit union / bank will at least negotiate and not look to.stiff you as soon as you run into financial trouble.

A credit Union or a bank will be more willing to work with you because the loan isnt secured on anything. They are relying on you paying them back with their only leverage being your credit rating.
Theresno advantage to a finance company (often just one of the normal banks anyway) dragging out the situation with a non paying customer and a fast depreciating asset.

CU's don't subscribe to the ICB AFAIK.

marcl

Just so ye know the HP deal is with Bank of Ireland finance

So a HP deal with a Bank

Guy:Incognito

MugMugs wrote: »

CU's don't subscribe to the ICB AFAIK.

Well then they have no hold on you and are only relying on your good will to pay them back. No wonder they are as nice as possible to try get you to pay.

vectra

@ OP
why not buy something for say half your proposed price?
Plenty of good decent cars that will last at least 4 years with regular servicing.

JustLen

vectra wrote: »

@ OP
why not buy something for say half your proposed price?
Plenty of good decent cars that will last at least 4 years with regular servicing.

+1, If you can get a CU loan for 5k then why not just buy a decent car for 5k + the 5-600 you can put on top yourself. With that much cash you could buy a pretty nifty motor with a dealer or private owner.

Plus your saving around 75 quid a month on repayments which would cover your annual road tax and still leaves some for maintenance/tyres/toys

You mentioned BMW heres a nice one, although some would be put off by the DL reg. Just to give a ROUGH idea of what 5k would buy

http://cars.donedeal.ie/for-sale/cars/3808489

bazz26

Most of the banks doing finance or HP these days insist on the car being bought from a main franchised dealer only. Bank of Ireland also look like raising their variable interest rate by 0.5% from Oct 5th.

marcl

JustLen wrote: »

+1, If you can get a CU loan for 5k then why not just buy a decent car for 5k + the 5-600 you can put on top yourself. With that much cash you could buy a pretty nifty motor with a dealer or private owner.

Plus your saving around 75 quid a month on repayments which would cover your annual road tax and still leaves some for maintenance/tyres/toys

You mentioned BMW heres a nice one, although some would be put off by the DL reg. Just to give a ROUGH idea of what 5k would buy

http://cars.donedeal.ie/for-sale/cars/3808489

Ya I would like something like that BMW 3 series, but i can't seam to find a nice Msport one from a dealer. I'd be willing to go for around an 05 one of these. Want to go from a dealer car as I want to get some bit of a warranty if possible.

bazz26

How much of a warranty are you expecting on a car hitting 7 or 8 years old?

marcl

http://www.carzone.ie/search/Volvo/S40/2.0-D-SE/29613451997984060/advert?channel=CARS

Also would consider something like the above. How relible are is the 2l diesel in these vovlos? I think its the same one as in a mondeo.

Bazz, I guess even a 3/6 month warranty would do me, don't worry i'm not expecting much, i just won't be able to afford massive repair bills in the first couple of months until i get a few savings together.

mickdw

Would a kia proceed be to your liking?
Suits the hire purchase as an 08 would be within budget. You could probably get a low mileage diesel 08 with alot of manufacturer warranty left and low tax for around 8k

marcl

mickdw wrote: »

Would a kia proceed be to your liking?
Suits the hire purchase as an 08 would be within budget. You could probably get a low mileage diesel 08 with alot of manufacturer warranty left and low tax for around 8k

Ya a proceed would be a nice motor. Only problem is not too many available for 8k

bazz26

marcl wrote: »

http://www.carzone.ie/search/Volvo/S40/2.0-D-SE/29613451997984060/advert?channel=CARS

Also would consider something like the above. How relible are is the 2l diesel in these vovlos? I think its the same one as in a mondeo.

Bazz, I guess even a 3/6 month warranty would do me, don't worry i'm not expecting much, i just won't be able to afford massive repair bills in the first couple of months until i get a few savings together.

Duration of the warranty is not the most important thing, it is what is covered under the warranty that matters. On a 7/8 year old car the warranty is going to be fairly limited in what is covered.

marcl

bazz26 wrote: »

Duration of the warranty is not the most important thing, it is what is covered under the warranty that matters. On a 7/8 year old car the warranty is going to be fairly limited in what is covered.

I get where you are coming for. with the warranty side of things. So what sort of warranty should I be looking for?

After trawling carzone for the day I've come up with a couple of potential cars so any advice on any them would be appreciated.

Focus 1.8l Style.
http://www.carzone.ie/search/Ford/Focus/1.8-TDCI/413256714217730/advert?channel=CARS

Golf 1.9TDI Sport
http://www.carzone.ie/search/Volkswagen/Golf/1.9-TDI-/7113384680297000/advert?channel=CARS

Volvo c30 2.0D
http://www.carzone.ie/search/Volvo/C30/2.0-D-SE/24513420931604610/advert?channel=CARS

This mazda seams to be good enough value for money, great spec and I'm sur I could get some few quid off to bring it down closer to 7k. Only thing is €660 tax and expensive insurance
http://www.carzone.ie/search/Mazda/Mazda6/TDI-SPOR/24713421724442710/advert?channel=CARS

Or else a saab 9-3
http://www.carzone.ie/search/Saab/9-3/1.9-TiD-/7013377777317540/advert?channel=CARS

Of course typically the golf and the focus are way over priced by comparison to the other 3

Jimbob 83

HP is designed to go wrong

Foresight and a credit union loan is where it's at