Car finance question, considering a Golf R

ifeelabreeze

I know cash is king and financing a car is frowned upon.

I’ll soon be 26, I’ve recently started a graduate job, commute is 60km but it’s going to be for a max 3 days a week.

Still living at home, saving for a mortgage and not all too interested in moving out given the price of rent, I’d rather spend that money on a car.

Currently have €5.5k outstanding on a Credit Union loan for a 2016 2L diesel Golf, car probably stands me around €14k, maybe slightly more.

I’m looking at changing to a Golf R, probably around the €25k mark, seems like the best sporty, practical, daily commuter. I know it’s going to cost me nicely but to me it’s worth it.

I just don’t know whether I should continue with the Credit Union, look at Hire Purchase or look elsewhere, what do you think?

The biggest financial mistake i ever made was buying a house instead of a Nissan 350z!

I would suspect nearly everyone uses a loan to buy a car, mostly on PCP.

lowest cost of finance is key. How much is a bank loan? How much is a CU loan for the cost to change?

17.5k over the time period you want to pay over.

But…. Golf R is high risk and insurance will be very expensive, some “person” will likely feel entitled to steal it! Hard to have a nice car in Ireland

bazz26

Interest rates are rising and will continue to rise in the mid term so the days of cheap borrowing of money are gone for a while.

Also if your saving for a house then just remember that when applying for a mortgage any loans you have at the time will be taken into account when the bank do a stress test on your income regarding how much you can afford to repay. The amount of your take home pay less any debt will determin how much you can borrow so best to have as little debt as possible at the time of applying for a mortgage.

kirving

If you plan on buying a house anytime soon, you do not need a Golf R hanging around your neck.

Anyway, at 26, spend your money on experiences which you cannot do when you're older. Plenty of time ahead if you for fast cars.

wotzgoingon

I agree with the others get the house mortgage first and then look for a fast car. As bazz26 said the bank will be looking at that car loan when applying for the mortgage. Stick with that current golf and it's not exactly a banger either so stay with it. I know the allure of a fast car is hard to ween but get the house first.

Del2005

When buying a car cash isn't king anymore. Dealer finance is where they make their money so walking in with cash means the dealer looses out on the commission they can make.

With a shortage of cars you get feck all discount on anything popular.

ifeelabreeze

https://www.boards.ie/discussion/comment/120285953#Comment_120285953

I was in touch with a dealership about what I'd get for my own Golf, 2016, 139k miles, 2 owners, recently serviced, taxed, NCT'd, Timing belt done at 110k miles, wanna guess what they offered me?

€8k, trading in against a €25k Golf R

ifeelabreeze

https://www.boards.ie/discussion/comment/120285813#Comment_120285813

This has been playing on my mind a good bit.

I'm fortunate enough that my parents have a site that they're suggesting I build on.

It's 0.5 of an acre, in a good location, been in the family for 40 odd years, but I don't know if I'd get planning (local need). I'd love a nice car, but I can't help feel I'm prioritising the wrong thing.

Also partially tempted to go for a GTI, save myself a few quid and still save for the house

colm_mcm

https://www.boards.ie/discussion/comment/120289352#Comment_120289352

Welcome to capitalism 😆

You could sell your Golf privately, it’s likely worth at least €11k in a private sale assuming there’s nothing wrong with it.

You could also get the Golf remapped, you’ll get in the region of 195bhp and lots more usable torque, it won’t turn it into a Golf R, but it will completely change how it drives. You’d be spending +/- €400 on a proper job.

nhg

or a GTD dsg

Big difference in fuel consumption between our 09 2.0L Golf tdi (1200km from a tank of Milesplus) and our 132 2.0L Golf GTD dsg (lucky to get 750km from a tank of Milesplus) based on same driving to work commute BUT no comparison is the driving experience.

Both cars serviced in main dealer, both cars have same tyres except different sizes, both cars filled with Milesplus all the time as we think we get better performance from the cars when using it. 180km on 09 tdi & 138km on gtd.

The sensible me says, keep the car you have, car prices are crazy at the moment, your know the costs involved in running your own car, clear the current car loan from savings if it means a saving in interest on the car loan as you are probably making little to no interest on savings. Then increase your weekly/monthly savings to include the money you were paying towards the car loan, it would make such a difference to the size of the deposit you would have when you eventually apply for a mortgage…. or while finding the right car you would have more saved towards it so less to borrow

Buddy Bubs

More of a question for a financial forum than a motors one the way you asked it. We all love nice cars here but I couldn't recommend you borrow to buy one. Concentrate on the house then you can do whatever the hell you want. You'll get a car loan with a mortgage no problem, you may not get a mortgage with a car loan.

bazz26

It should also be noted that 25k in today's used car market probably gets you a respectable 2014/2015 Golf R which may limit your car loan options where the car is required as security against the loan. Most banks may not offer a secured car loan against a car of that age, they usually only offer secure car loans on cars upto 5 or 6 years old. Non secured loans such as personal loans from banks and credit unions usually mean higher interest rates because the risk is higher to the lender.

ifeelabreeze

https://www.boards.ie/discussion/comment/120289509#Comment_120289509

I was thinking of going for DSG GTD but I'm not sure if it's enough of a difference to warrant the price.

Also feel a Mk7 GTI would make more sense financially, between up front costs and running costs, but part of me still would prefer the way the Golf R puts down power.

Also tempted to just sell the golf, buy something dirt cheap after clearing the loan and drive it into the ground whilst saving the difference

theintern

Did you just post on the finance forum on reddit about your planning question? Based on the specific details you shared here and also there I'm pretty sure you're the same poster.

You didn't mention the Golf R over there :)

I have to agree with the others. If you're serious about getting a house, and also based on the details around salary/savings you mentioned on reddit, then you should leave the R for a few years.

If you decide to go for the car, go for it and enjoy the hell out of it, but understand that it will significantly impact your time line for a house. You need to take some time to think about it and work out what's really most important to you.

greasepalm

One thing with buying a diesel is they need motorway driving to keep the exhaust clean and if stop/starting forget a diesel.

ifeelabreeze

https://www.boards.ie/discussion/comment/120292662#Comment_120292662

You've a good eye, I did indeed!

I'm just toying with my options really. I didn't feel like getting lambasted for considering something as admittedly stupid as a Golf R on finance.

I was more so just looking at my options.

I've realised I'm nowhere near close to owning my own place, but I still want to save towards that, I just don't see the point in completely depriving myself to get my own place somewhat sooner.

So I'd like to save towards a mortgage, whilst still enjoying (finally) earning some money.

I know a Golf R will set me back a few years, so in that regard I'm not entirely sure it's worth it.. But I think changing my car is worthwhile, a GTI may be a better option for me.

ifeelabreeze

https://www.boards.ie/discussion/comment/120292665#Comment_120292665

I'm grand in that regard, half of my hour commute is motorway.