******Motors Chat - Round 6******

Noccy_Mondy

Ya I'm with the lads on the loan idea. Jaysus you (may) be long enough dealing with loans in life (mortgages etc) and from what I gather you're only young. Wait till you get working, then get your dream car. Not worth repaying a loan (albeit a small amount) every week or whatever!

Foxhole Norman

toastedpickles wrote: »

Seeing as we're both around the same age, in college and so on, I would avoid a loan like the plague, I'd rather make the money myself and spend my savings then that way you don't need to repay back a loan while maintaining the car, what if something goes on it? then you need to spend money on the part/labour, while keeping money aside for the loan and so on

just my two cents

Thing is though is that I'm in a lucky situation where College is paid for which means I have no fees and as I'm living at home, no bills. With a loan I could get the car, have some left over if I ever need it and my own savings are untouched which I could then use on maintenance/upgrades etc.

YbFocus

toastedpickles wrote: »

The only reason I have my car is because i worked my ass off during christmas to afford it, and coupled with that a very very tight budget, that's the only way i can afford to run it

Yep I think you're like me, not a big fan of the drink etc so the one thing you spend money on is your car?
Fox if I was you I'd get a real budget machine until your out of college and then the world is your motoring oyster. Buy what you wish without having to be on the breadline. You won't enjoy the car if its what cripples you with repayments etc.

toastedpickles

YbFocus wrote: »

Yep I think you're like me, not a big fan of the drink etc so the one thing you spend money on is your car?
Fox if I was you I'd get a real budget machine until your out of college and then the world is your motoring oyster. Buy what you wish without having to be on the breadline. You won't enjoy the car if its what cripples you with repayments etc.

Sure I don't drink at all, plus just running it alone takes up most of my money, I've a "when sh1t hits the fan" fund for it too, put so much away each week for the time something hits the fan

If you have a decent amount of savings, then i would use them to pay for insurance/tax and so on, and keep the rest for repairs, cars like that, mine, and Yb's are not cheap to maintain, tyres for mine alone are over 500 quid for 4 on my astra it was like 200, even the oil is more expensive so if you have your heart set on it then do the sums, and if it works out take the plunge

Foxhole Norman

YbFocus wrote: »

Yep I think you're like me, not a big fan of the drink etc so the one thing you spend money on is your car?
Fox if I was you I'd get a real budget machine until your out of college and then the world is your motoring oyster. Buy what you wish without having to be on the breadline. You won't enjoy the car if its what cripples you with repayments etc.

That's the thing, I don't think a loan of that size i.e about €5000 euro would cripple me. With a rough interest rate of 5% the total cost of the loan would be about €5300 or am I doing my maths wrong? Over 2 years that's €50 a week or around €35-€40 at 3 years.

YbFocus

Very true on the servicing, one thing I negated to think of when buying the 530d was that it needs 8.3 litres of oil every service.

So that literally doubles the servicing cost over a more normal capacity car.
Tyres for my car could reach €1000 if I wanted to spend that but the ones I buy through a friend come in at €170 a tyre!!

Just think about every possible aspect before doing anything.

Not trying to scare monger or anything but just showing you what happened to me, the servicing would be mental if I didn't do it myself.

E39's and E60's love rear arms which is a cost you'll need to account for if you aren't willing to do them yourself.

YbFocus

Foxhole Norman wrote: »

That's the thing, I don't think a loan of that size i.e about €5000 euro would cripple me. With a rough interest rate of 5% the total cost of the loan would be about €5300 or am I doing my maths wrong? Over 2 years that's €50 a week or around €35-€40 at 3 years.

€5510 by my calcs over 3 years but I could be wrong also.

Foxhole Norman

YbFocus wrote: »

€5510 by my calcs over 3 years but I could be wrong also.

That would work out around €35 a week for me. I typically earn minimum €140 a week and with little drinking and no smoking leaves (I think anyway) a decent bit.

MetzgerMeister

Foxhole Norman wrote: »

That would work out around €35 a week for me. I typically earn minimum €140 a week and with little drinking and no smoking leaves (I think anyway) a decent bit.

What leaves were you smoking?? :P

toastedpickles

Foxhole Norman wrote: »

That would work out around €35 a week for me. I typically earn minimum €140 a week and with little drinking and no smoking leaves (I think anyway) a decent bit.

Well as i said, do the sums, if it seems ok, then go for it but just be prepared for any unforeseen issues

Foxhole Norman

toastedpickles wrote: »

Well as i said, do the sums, if it seems ok, then go for it but just be prepared for any unforeseen issues

Yeah I'm going to have a sit down and discuss it with the parents and see what the story is, another option is to take a loan from my parents where there's no repayment time :pac:

toastedpickles

Foxhole Norman wrote: »

Yeah I'm going to have a sit down and discuss it with the parents and see what the story is, another option is to take a loan from my parents where there's no repayment time :pac:

Some of us had to work for our cars :P

Foxhole Norman

toastedpickles wrote: »

Some of us had to work for our cars :P

I'm working for this one

toastedpickles

Foxhole Norman wrote: »

I'm working for this one

Well then :P but yeah that's my view on it

Supergurrier

Buy a horse bai

Kaiser D

Also, I meant to say, I met geogrefalls with his GT today, seriously clean car!! Really lovely.

Toyotafanboi

i will echo what others have said. i took out a €4k personal loan to buy a car at age 18. never EVER again. ever.
the loan is still there long after the car is gone, i couldn't pay mine off fast enough, paid it back a year early i wanted rid of it so bad.
from here on out, i will only drive cars i can afford to buy outright, it's just so much more financially comfortable.

Ardennes1944

Why the hell dont people keep their receipts like! "Is the timing belt done? It is yeah it was done at 63k miles. Do you have the receipt for it? No I don't.
Well thats no fcuking good to me so! If they are telli the truth why oh why would you not keep the receipt even for parts for something that costs like 400e

Toyotafanboi

Ardennes1944 wrote: »

Why the hell dont people keep their receipts like! "Is the timing belt done? It is yeah it was done at 63k miles. Do you have the receipt for it? No I don't.
Well thats no fcuking good to me so! If they are telli the truth why oh why would you not keep the receipt even for parts for something that costs like 400e

i will say this. some people are just thick.

my dad is a retired mechanic and maintains his car himself. he's had it 4 years, serviced it every year way before the mileage is up, bought tyres, bushings, and just recently a full timing belt kit.

every year i tell him just to slip the parts receipts into the front page of his owners manual as he will never know when he might want them. "ah sure what would i ever want them for" :rolleyes: even after explaining it he still doesn't really get it. he's more accustomed to an ireland where people don't understand or care about cars and buy them because its black and has cheap tax.

i guess what i'm saying is, it could well be genuine. but i still wouldn't trust it :P

Old diesel

Foxhole Norman wrote: »

I think I'm going to go for a CU loan for the new car, what do people think? I was thinking about trying for 5K as that would cover initial purchase price, tax and insurance for the year along with a little left over for repairs/problems.

What could you afford to buy/tax/insure today - WITHOUT a loan and without putting yourself under financial pressure???

It would be better to let (some of) your savings take the hit for these costs - and for what would have been loan repayments - to replenish your savings account.

Don't forget - there will be interest on top of the 5 k too :eek:

Supergurrier

Alternatively.

While people here seem dead set against loans they are a great way to budget.

However 5k seems a bit extreme for a car sub 3k.

If getting a cu loan try and limit it to cost of car+ 6 months tax maybe and save for insurance between now and september.

You like cars.
You have a bit in the cu saved already which means worst case scenario you can clear loan halfway through if your circumstances change
You aren't paying rent
You said yourself you are not paying mad uni fees.
Your interests don't include pissing 100e against the wall at the weekend.
You will now be able to cart your big thick cork heads around in comfort and up hills
It will give you a goal(saving for insurance balance etc)

Plus you will leave uni with a successfully paid car loan and if you opt for it to be taken out of current account by DD ultimately an improved credit rating.

Personally if you keep the loan sub 4k and at a two year term its a no brainer.

Clearing out your CU savings would be silly IMO.

Foxhole Norman

Old diesel wrote: »

What could you afford to buy/tax/insure today - WITHOUT a loan and without putting yourself under financial pressure???

It would be better to let (some of) your savings take the hit for these costs - and for what would have been loan repayments - to replenish your savings account.

Don't forget - there will be interest on top of the 5 k too :eek:

Right now? Nothing, but I will have in a few months and I have my heart set on an E39 and nothing else. To be honest it's really that I just want to finally see the back of the Yaris, it's grand like but it's load, not that comfortable, you feel every bump in the road and right now, not up to the load carrying ability that I need.

Supergurrier wrote: »

You will now be able to cart your big thick cork heads around in comfort and up hills

This is important :pac:

Cleveland Hot Pocket

Supergurrier wrote: »

Alternatively.

While people here seem dead set against loans they are a great way to budget.

However 5k seems a bit extreme for a car sub 3k.

If getting a cu loan try and limit it to cost of car+ 6 months tax maybe and save for insurance between now and september.

You like cars.
You have a bit in the cu saved already which means worst case scenario you can clear loan halfway through if your circumstances change
You aren't paying rent
You said yourself you are not paying mad uni fees.
Your interests don't include pissing 100e against the wall at the weekend.
You will now be able to cart your big thick cork heads around in comfort and up hills
It will give you a goal(saving for insurance balance etc)

Plus you will leave uni with a successfully paid car loan and if you opt for it to be taken out of current account by DD ultimately an improved credit rating.

Personally if you keep the loan sub 4k and at a two year term its a no brainer.

Clearing out your CU savings would be silly IMO.

I disagree. As someone who had a 15k loan from the CU a year ago.

if you spend your savings and then set up a dd as "repayments" you will end up saving more than the loan total (cu is 9%+ interest rates)

jenizzle

Smaller loans are also a good way to build credit history with a bank, to show you can always meet repayments etc.

I've always had a loan for my cars - nothing major, but I don't have the patience to save up to change car. Means I have savings then for the inevitable engine explosion 2 years down the line :pac:

Foxhole Norman

jenizzle wrote: »

Smaller loans are also a good way to build credit history with a bank, to show you can always meet repayments etc.

I've always had a loan for my cars - nothing major, but I don't have the patience to save up to change car. Means I have savings then for the inevitable engine explosion 2 years down the line :pac:

That's my problem too, not patient enough to save, especially with other expensive hobbies. A loan would mean I'd have to save and it'd build my CR for when I leave college.

String

Cleveland Hot Pocket wrote: »

I disagree. As someone who had a 15k loan from the CU a year ago.

if you spend your savings and then set up a dd as "repayments" you will end up saving more than the loan total (cu is 9%+ interest rates)

But for example you loose your job, you then have zero savings, whereas if you have the loan, you can use the savings to cover the direct debits plus other stuff so hopefully you will be back in work before your savings run out. In my current situation, a 3 year car loan, my savings would cover it but I would expect to be back in work within a few months.

Cleveland Hot Pocket

String wrote: »

But for example you loose your job, you then have zero savings, whereas if you have the loan, you can use the savings to cover the direct debits plus other stuff so hopefully you will be back in work before your savings run out. In my current situation, a 3 year car loan, my savings would cover it but I would expect to be back in work within a few months.

and if not? You're left with loan repayments, savings used, and nothing.
Can't always plan for the worst.

Foxhole Norman

Just ran a car check on the 520i, all good bar this mileage problem, looks like they just entered the wrong data but just want to be sure:

Previous Readings Mileage Source
23/10/2012 210,824 Kms (131,000 Mls) INMR
19/09/2012 209,215 Kms (130,000 Mls) INMR
19/09/2006 78,189 Kms (48,584 Mls) INMR
11/07/2006 125,833 Kms (78,189 Mls) INMR

It looks like they just entered miles as the KM's.

toastedpickles

My jaw...she hurts damn dentist!!

Noccy_Mondy

toastedpickles wrote: »

My jaw...she hurts damn dentist!!

Hehehe. Did you look at the one he took out. The roots are massive!