Do I go from 2nd Hand to New car with finance?

I will be borrowing it all - basically consolidating the loan currently on my car with a new one. Payments are under £300pm and I'm paying £160pm anyway so not a massive increase although I will obviously be paying this new loan for a few years longer than the 3 years remaining on the current one

I just did something similar (traded in 6yo BMW to pay off existing loan) and borrowed 20k from Sainsbury's over 5 years at 3% for a 2yo AUC BMW, this sits at £359pm so you must be more than 5 years to get it under £300pm (6yrs maybe?)
 
I just did something similar (traded in 6yo BMW to pay off existing loan) and borrowed 20k from Sainsbury's over 5 years at 3% for a 2yo AUC BMW, this sits at £359pm so you must be more than 5 years to get it under £300pm (6yrs maybe?)

Same here - Current loan is with Sainsburys as will new one - 3.3% APR or something and yes I'm going for 6 years just to keep it under £300 and it doesn't add more than £300 or something to the total.

Plus having it for 6 years will hopefully make me keep the car for that long...maybe ;)
 
I think it went up recently as mine is definitely at 3% (took it in March) even so can't be a better time to borrow with low interest rates :)
 
I think it went up recently as mine is definitely at 3% (took it in March) even so can't be a better time to borrow with low interest rates :)

Might also go down at £20k but either way it's a good rate compared with usual financing offers and even my own bank loan rates [emoji4]
 
I've just read through this thread as I'm in a similar position trying to decide if I should buy a slightly older car second hand or buy brand new on PCP. I think you have made the right decision though with a bank loan and buy it outright.

I bought my last car on a bank loan over five years (Honda Accord) and I haven't had any problems with it, just the usual wear and tear stuff that has needed replaced. But now I really want a mk7 golf gti or R and I'm really struggling to justify buying it new on PCP. I would have to put down 7-8k as a deposit to bring the monthly payments down over four years and I would have to cough up a further 12k at the end to own it outright. I think I'm likely to go with a 1-2 year old gti/R with another five year bank loan...
 
I'm definitely happy I made the choice of 2nd hand nearly new. Just sorted the loan paying off my previous one.

It was a £30k+ car 7 months ago with the spec it has. It's Ford Direct so was used by staff for several months and I'm buying it for under £19k with almost 2.5yrs warranty left on it.

I just want to pick it up now, maybe next weekend if I'm lucky [emoji4]

Will hopefully keep it 5-6 yrs and then do the same again I think.
 
Ive been lucky enough to never have PCP or finance on cars my whole life, my neighbor has bought a BMW 1 Series and he told me the deal he got, limited to 8k miles a year and has a huge balloon payment after 4 years that he has no intention of paying, is this normal, sound like a bad deal to me.
 
Ive been lucky enough to never have PCP or finance on cars my whole life, my neighbor has bought a BMW 1 Series and he told me the deal he got, limited to 8k miles a year and has a huge balloon payment after 4 years that he has no intention of paying, is this normal, sound like a bad deal to me.

That's exactly what PCP is, small deposit, lower monthly payments, balloon payment or hand back after term.

I like having newer cars these days and not having to worry about repairs and costs associated with used cars, I also tend to change cars very 1-2 years which is never good financially. Depreciation is nearly always the biggest cost when it comes to owning cars. If I bought used then I'd be paying the same per month on a loan compared to lease or pcp and after a couple years be no better off so leasing new or buying new on pcp works for me.
If I wanted to keep a car longer then a couple years then a loan on a used car would be better as after 5 years id own a 5 plus year old car but thats not for me.
 
I still can't work out why you want another mondeo when your last one had so many problems.

I go through this process in my head every few months. Lease or another second hand car. My car is 13 years old, 59k miles, no problems in my 7 year ownership. Even if my car was worth £0 I'd still be quids in. But it's an old car and the draw of driving a new car every 2 years for a couple of hundred a month is very tempting.
I've never had a bad second hand car but I do my research when buying.
 
Sainsbury's offered me up to £20k for 2.6% but only over 3 years.
 
Can you only get pcp from manufacturers on new cars or do they now also provide on cars up to 12 months old say
 
I still can't work out why you want another mondeo when your last one had so many problems.

I go through this process in my head every few months. Lease or another second hand car. My car is 13 years old, 59k miles, no problems in my 7 year ownership. Even if my car was worth £0 I'd still be quids in. But it's an old car and the draw of driving a new car every 2 years for a couple of hundred a month is very tempting.
I've never had a bad second hand car but I do my research when buying.

It's my first car with problems and after checking the Ford forums i have faith that they are actually very good and this is a new model with updates across the board.

Plus I really like the car and it ticks all the boxes for the price. The engine is proven as used in numerous other cars in the past as is the gearbox. I think I just got a bit of a dud with can happen to anyone. 95% of the time us absolutely fine.

I definitely don't need a new car every few years, 5-7yrs works for me but I do like to get a low mileage, nearly new car if possible.
 
Can you only get pcp from manufacturers on new cars or do they now also provide on cars up to 12 months old say

I think there's other finance options for used as opposed new. You definitely can't lease but you can get finance but usually at a crazy interest rate (6-10%) so to a lot makes more sense with a bank loan.
 
You can do PCP on pretty much any age car if the dealership will offer it. I was offered it on my last car which was 5 years old at the time.
 
The issue I have with PCP is that you pay interest on the balloon payment as well as the actual 'loan' amount.

Eg - if the car is 30k value and your deal is for 4 years, with a 12k balloon payment at the end, you are basically financing 18k with the view to not owning the 12k worth of car at the end (optional purchase)

But, and here’s the rub, while you are technically financing £18k over 4 years, you pay the interest of the full £30k. The salesmen don’t tell you this – they hook people in via low monthly payments to make it appear good value.
 
But who cares....the monthlies are low, right? :D
 
The issue I have with PCP is that you pay interest on the balloon payment as well as the actual 'loan' amount.

Eg - if the car is 30k value and your deal is for 4 years, with a 12k balloon payment at the end, you are basically financing 18k with the view to not owning the 12k worth of car at the end (optional purchase)

But, and here’s the rub, while you are technically financing £18k over 4 years, you pay the interest of the full £30k. The salesmen don’t tell you this – they hook people in via low monthly payments to make it appear good value.

That's what puts me off the whole thing, paying a slightly smaller amount of money per month but you get a new car as opposed to a 6 month old one and you either have nothing at the end or a large payment to keep it as opposed to a nearly new car and I'll have it to keep at the end and some value still in it.

Easy choice... :)
 
Well, checked out the car at the weekend - looks great in dark red and comes loaded with every extra apart from the Self-Parking thing and panoramic roof. Much nicer ride than my current one as it doesn't have the 19" wheels and sports suspension. Tricky test drive as I have my 2yr old with me so had to swap the car seat into it :)

All for under £19k!

Anyway, deposit down and will pickup on Saturday, happy days.
 

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