Getting an older car on finance, bad idea?

VonVix

I’m in a position where I need to get a car quickly (within the next 3 months ideally) for work reasons, I’ve been seeing getting a 2007-2010 car for roughly €200 per month (car valued at about 7-10k) for the next 5 years as an option, with a small deposit, I am also aware of APR etc. Is it a bad idea?

Would I be better off getting a loan for an older car instead? Is getting an older car on finance (or loan) going to be a money pit?

I just need some experiences and suggestions before I do this, either way, I need to try and get a car relatively quickly!

Buddy Bubs

You've to pay for the car either way so unless you have the cash you have to borrow and pay it back. You can pay back loans and car finance early, terms and conditions key here as to how advantageous it is.

Only thing is, it's quite an old car to begin with and you'll be paying money on it in a number of years time where it would be seen as a very old car by then and you are still paying same amount.

Car won't be a money pit any more if you buy it for cash or on credit.....

7 to 10k on a 12 to 15 year old car leads me to believe its a high end car which will be more costly to maintain than a run of the mill car.

If your budget is tight at 200 p/m and taking 5 years to pay it back and can't up that significantly every month then I'd forget about it. Big chance you'll run into unaffordable repairs

Ash.J.Williams

i wouldn't get finance on a 2010 car and i have no reason to back that up

cml387

There's a "Bangernomics" thread where sub 2k cars are highlighted (not sure how active it is).

If strapped for cash that might be an option.

VonVix

https://www.boards.ie/discussion/comment/119183763#Comment_119183763

Not a high end car, just small automatics I’m looking at! As I have an automatic license. But thank you for the information.

unkel

I wouldn't get a loan for any car. New or second hand. It's a depreciating asset. Only spend what you have. There are some very decent cars in the bangernomics thread as @cml387 posted, some for just a few hundred quid.

Trigger Happy

Thats a lot of money over 5 years for a small automatic of that age. A 2007 car will be 20 years old in 5 years time. Fair chance that unless it is really well maintained, of very decent quality and driven like Miss Daisy- it will be on the scrap heap by that time...and you could still be paying it off.

Avoid.

bazz26

Bangernomics thread is very quiet these days as there are so very few bargains around in the used car market nowadays. Small automatics are always going to be expensive because there are so little on them available here.

In saying that there is no way I'd be taking out a loan on a car of that age.

User1998

Most finance companies don’t cover 10 year old cars. The ones that do will charge a very high APR. Around 10 to 12 percent I think

If you have no money and need a car then consider getting a credit union loan. You can get cheap reliable automatics for as little as €2k.

chops018

....

VonVix

Thanks for the responses, it's very helpful! Another question for you guys... what's the oldest age of a car you would consider getting a loan on or financing?

User1998

No one can answer that here. It completely depends on your own financial circumstances and the terms of the finance agreement

wylo

I think now more than ever is the best time to do it if you're ever gonna do it, used cars are holding their value much more than they used to be.

DoctorEdgeWild

Bangernomics all the way (don't let the name put you off, it's a little tongue in cheek!) Super reliable, well maintained older cars can be absolute dreams to own, if you put in the time researching. All of my cars are pre-2000, high mileage, but I know they will start on the button as I maintain them.

You can pick up a really solid, reliable car for £1500 (I know insurance, tax etc. is a problem in Ireland) but once something is near the bottom of the price scale, it stays there, meaning your asset won't depreciate much more (if you think in that way).

As per most people above, I'd never consider finance on something like this, but a small loan might make sense, depending on your personal circumstances.

ohnonotgmail

https://www.boards.ie/discussion/comment/119195491#Comment_119195491

very few small automatics to be got for 1500. Any that are for sale are 2007 or earlier.

DoctorEdgeWild

https://www.boards.ie/discussion/comment/119195588#Comment_119195588

Well spotted, didn't see that information. It's certainly a way to limit oneself by choosing those parameters but I still believe it to be a far better bet than getting into a finance agreement. Old cars do always not equal money pits

Bawnmore

It might be worth seeing what it looks like insurance/tax/overall cost wise if you consider bigger automatic cars (if you're comfortable with it). Some examples:

07 1.6 Renault Clio €3k: small car, but with slightly bigger engine - https://www.donedeal.ie/cars-for-sale/renault-clio-automatic-2007/31387366?campaign=3

08 1.6 Nissan Tida €2.25k: Not the most desirable, but good price and plenty of NCT - https://www.donedeal.ie/cars-for-sale/nissan-tida-1-6-petrol-automatic-new-nct-02-23/31395063

09 1.2 Nissan Micra: Not a very long NCT but fits the bill pretty well - https://www.donedeal.ie/cars-for-sale/nissan-micra-09-automatic/31370613

Edit to add some more - they're obviously not as plentiful as manual cars, but there seems to be enough cheap/small/auto/+07 cars around:

07 1.3 Colt: Nice NCT, low miles https://www.donedeal.ie/cars-for-sale/2007-mitsubishi-colt-1-3-auto-nct-04-23/31355093

08 1.5 Lancer: Nice NCT, not too big - https://www.donedeal.ie/cars-for-sale/mitsubishi-lancer-2008/31226502