Whats the percentage of your Car repayment from your disposable income?

0% for me too

oxygen wrote: »

I test drove a Mazda3 hatch, and liked. Its a good deal, €8,750 for a '06 with 22k miles on the clock.
...
I wanted a 4 or 5 yr loan, but they told me yesterday that all they could get is a 3 year loan.
This brings the payments to %25 of my disposable income.
...
cause the other option is to buy a but ugly car for 2K.

So why not get a loan for 5/6K over 3 years - why the jump from nearly 9K to 2K?

I had to get a loan (10 grand) a few years ago, but not for a car. It was over 5 years, but I paid it off after just over 2 years - I hated having it, even though I could afford it. Since then, I've been putting the same amount of money I used to pay off the loan with into a savings account each month.

Personally, I'd never get another loan again (mortgage excepted) unless I absolutely had to (something like medical or legal fees). But maybe that's just me.

Any car I've bought so far has been for my own cash, so it's 0% for me too.

OP, i suppose it depends on your job, but with the way things are going at the moment, I wouldn't be putting 25% of my disposable income into a loan. With tax increases and benefit decreases in the next budget, that could easily become 35% - assuming your job is still around then.

While things are good at the moment, interest rates are only going to go one way (up) over the next 3 years - if it's a fixed rate, that won't matter, but keep it in mind if it's variable.

EDIT: is the 200 deposit the only cash you're planning to put towards the car, or is it just to put your stake on it?

As for getting a butt ugly car for 2K - there's lots of nice cars you could get for that money, and then save what you would have put into the loan for 3 years and get something even better with the cash then.

oxygen wrote: »

Thanks for the reply guys. I was kinda on the fence about it myself, think yere right.

A quater of my displosable would be putting me under a fair bit of pressure for a car I drive mostly at weekends.Think I'll start looking for something a bit more in my price range.

I've seen loads of keenly priced cars on www.adverts.ie in recent times!

I have a car loan as well - don't know the exact percentage, but I think it's less than 5% of my take home.

This comes up a good bit, and you'll always have the people who trot out the totalities about how it doesn't make financial sense.

But a lot of these people drive cars that depreciate a lot and/or have high tax and running costs. So really it's just a case of choosing in what way your car is going to lose your money for you.

Anahi Panicky Stalemate wrote: »

There would be very few expensive cars on the road if everybody had this opinion. I dont see the problem with getting a car loan to buy a car you want. If you want the car its hardly a waste of money.

Im talking about car loans btw not financing through the dealer.

It's a matter of personal opinion, really. Mine is that if I can't pay cash for a car then I can't afford it. I think this is particularly true in the current market, where cars are so cheap to buy and depreciate so much.

i pay about 15% of dispoasble income on car repaymemts. got a credit union loan so some months a bit more some a bit less without any penalty. Paid off my last 5 year car loan in 2 1/2 years this way hope to do the same this time

Anan1 wrote: »

It's a matter of personal opinion, really. Mine is that if I can't pay cash for a car then I can't afford it. I think this is particularly true in the current market, where cars are so cheap to buy and depreciate so much.

Yep,totally agree. And for what it's worth...paying cash for a car doesn't necessarily mean it'll be a couple of grand for a banger. I paid over €20k of my hard earned cash for my last car....saved for it like a bastid as I really wanted that car and had a goal of buying it without having to go into debt in order to get it. It'll be the same for my next car.

Anahi Panicky Stalemate wrote: »

I am not saying someone should go out and get themselves into a situation where they borrow more than they can afford to repay.

But if someone wants to go out and buy a car they want, which they cannot pay for in cash and never could but could easily afford the repayments over a few years I dont see the problem.

The problem is that many people have borrowed more than they could pay back......the proof of this is in Merlin auctions! It's the "keeping up with the Jone's" syndrome....people were buying cars that they couldn't afford, building houses they can't afford to heat...nor make repayments, taking 3 or 4 expensive holidays a year ............the recession has put paid to all of that for these gobshytes.;)