Car advice

[Heidfirst]

The vast majority of depreciation is in the early years. As a 2011/12 car will be at least 5 or 6 years old when a new model is released (& people looking at buying new won't be looking at a 5/6 year old car & vice versa) I doubt that the availability of a new model will make much difference to it's value.

[iamnicolas]

Thank you!

[iamnicolas]

I think am gonna go with toyota yaris auto trend! I really like trend but there is only 2 cars available at 7000 and 7500. Or i might get an sr which is nice too! 

Any advice regarding finance? I am 21 and i just started my first job! I have Good credit score!

[FROSTYBALLS]

Presumably you're looking at either a personal loan (typically via a bank, supermarket, building society or similar) or hire purchase (typically via a dealer) rather than a Personal Contract Plan.

One of the things you need to consider is the APR (annual percentage rate). Dealers tend to prefer to quote the base rate, but the APR is supposed to be the most easily understood interest rate.

Hire purchase is tied to the item the money is lent against, which means, as regards a car, the car isn't yours until the final paynent is made. If one wants to sell the car before the hire purchase agreement is finished, one has to settle the hire purchase first.

Personal loans aren't tied to the item bought, so the car is legally yours from day one, and one can sell the car before the agreement is finished. Obviously you still need to continue making the personal loan repayments or settle the personal loan agreement.If you're considering a personal loan, shop about - main High Street banks, supermarkets, insurance companies, other companies such as the AA, etc. One can also use a comparison site - be aware that these make their money by charging a referral fee to the lender, which will probably get hidden within the interest payable on the loan.

A Personnel Contract Plan (PCP) is effectively where one finances the depreciation on the vehicle. Usually one has to pay a deposit, which can vary according to the plan. Monthly repayments are lower, but there is a 'balloon' payment (known as the 'guaranteed future value') usually a few thousand pounds, at the end of the plan. PCP's have an annual mileage limit, and where you exceed this limit at the end of the plan, you incur an excess mileage charge. When the plan finishes one has three choices - 1) start another PCP, 2) hand the car back and walk away, or 3) pay the 'balloon' payment and own the car. In the case of 1) or 2), the car has to be returned in reasonable condition, so one may be liable for any repairs needed (eg paint scuffs, dents, etc).

 

[iamnicolas]

52 minutes ago, FROSTYBALLS said:

Presumably you're looking at either a personal loan (typically via a bank, supermarket, building society or similar) or hire purchase (typically via a dealer) rather than a Personal Contract Plan.

One of the things you need to consider is the APR (annual percentage rate). Dealers tend to prefer to quote the base rate, but the APR is supposed to be the most easily understood interest rate.

Hire purchase is tied to the item the money is lent against, which means, as regards a car, the car isn't yours until the final paynent is made. If one wants to sell the car before the hire purchase agreement is finished, one has to settle the hire purchase first.

Personal loans aren't tied to the item bought, so the car is legally yours from day one, and one can sell the car before the agreement is finished. Obviously you still need to continue making the personal loan repayments or settle the personal loan agreement.If you're considering a personal loan, shop about - main High Street banks, supermarkets, insurance companies, other companies such as the AA, etc. One can also use a comparison site - be aware that these make their money by charging a referral fee to the lender, which will probably get hidden within the interest payable on the loan.

A Personnel Contract Plan (PCP) is effectively where one finances the depreciation on the vehicle. Usually one has to pay a deposit, which can vary according to the plan. Monthly repayments are lower, but there is a 'balloon' payment (known as the 'guaranteed future value') usually a few thousand pounds, at the end of the plan. PCP's have an annual mileage limit, and where you exceed this limit at the end of the plan, you incur an excess mileage charge. When the plan finishes one has three choices - 1) start another PCP, 2) hand the car back and walk away, or 3) pay the 'balloon' payment and own the car. In the case of 1) or 2), the car has to be returned in reasonable condition, so one may be liable for any repairs needed (eg paint scuffs, dents, etc).

 

 

Thank you! That is very helpful!

[iamnicolas]

I have decided today that i will be looking for both the Toyota Yaris Trend and the Ford Fiesta Titanium 3-door. I like both but the Yaris trend auto is very rare! Thank you guys! I will let you know which one i will get!