Prospective owner, some questions!

[infernouk 8]

Yeah I'm leaning toward a 2015 model with as low mileage as I can get. Just looking at financing I assume I'll need a bank loan as dealers don't offer many deals on non new cars?

[nerdstrike 186]

I'd presume they'll still do hire-purchase, but they probably won't beat the interest rate from a bank.

[Lauren 2259]

6 hours ago, infernouk said:

Yeah I'm leaning toward a 2015 model with as low mileage as I can get. Just looking at financing I assume I'll need a bank loan as dealers don't offer many deals on non new cars?

They will offer a hire purchase loan, it's worth checking out to see what the interest rate is as it may well be lower than 5.9%, but obviously you'll be taking out the loan on the whole price. Buying new is often done on a PCP. I did this over three years. I paid £450 a month with a 7K deposit on a new GT86. I paid the higher rate so the balloon payment at the end of the three years was £9K instead of £12K or so. I then took a personal loan for £7.5K which I finish in a couple of months, so it's taken me 4.5 years on a car costing £30K (I ticked the options) plus interest of course. 

[Nicebiscuit 655]

Interesting. The balance seems to have shifted. When I bought my car in 2015 you could get a keen deal on a new car, and second hand examples were scarce. Basically I'd have been only saving £2-3k going secondhand. Not worth it.

 

But now used values have softened. I think if I were buying now I'd be tempted to take a punt on an early car. As said above - they are usually low mileage and often babied by fastidious owners and few significant issues have come to light.

 

It's a great car, but not one I'd want to spend nearly £30k of borrowed money on. I doubt you'd have any less fun in a carefully selected £15k example.

 

 

Sent from my iPhone using Tapatalk

[infernouk 8]

So hire purchase is the best used finance method? I don't see myself getting a new car with the depreciation and Apr your significantly worse off for the sake of a few new MY17 bits which aren't worth the £10k hit

[rob275 1817]

I got a bank loan as the rates were better, 2.9% 

[br0wny 27]

I too have been looking at all the options as I'm after buying one after my wedding in October. Been lurking the forum for a while haha. 

Having just got rid of a bmw m135i that I got brand new I can safely say I'm never buying a brand new car again unless I win the lottery. Especially a bmw that depreciated like that!!! 

 

I've been looking at 14-15 plate ish cars at around 16-18k as this seems to be a bit of a sweet spot in the used gt86 market. 

Low miles, only a couple years old, still a couple of years warranty left. Little amount of further depreciation looking at the cheaper cars available. 

Makes the most financial sense for a gt86 purchase in my eyes

[jevvy 40]

There's an insanely good deal on autotrader for 17500, white has the full leather seats and JBL sound system 65 plate with 8k miles. It's probably worth 18+ And the leather seats and jbl system are worth 2k ish in value. So it's like getting a 65 plate with cloth seats and stock sound for 15500 which is mental. The fact that it's a bargain and also white is really rare as Whenever I was looking to buy it was always blue/black that was cheaper at and I have a mooch round autotrader often 

[KobayashiMaru 28]

Bank loan if I need to make up the difference is what I'd do. Just bear in mind the rate is less once you go past £7.5k so as long as you can afford the monthly repayments it's worth doing that and some banks like Lloyds will let you pay more back when you can with no penalty. So you could take it out for 5 years but pay it off in half the time and also pay even less back as interest. Last time I looked there was a few around 2.9% depending on assessment. 

[Deacon 1357]

Another vote for a bank loan. I took a 5 year loan out on mine as I wanted the lowest payments possible as it makes more sense for me to funnel money into my offset mortgage account. Normally I'd go for the loan over the shortest period though to minimise interest payments.

[infernouk 8]

Yeah I'd look at a 3 year loan for the difference of what's left after I put in initial money, but it all depends on loan APR which you can't get a baring on until you apply and then it's down in your credit rating even if you don't accept it!

[ThatGuyThere 54]

Agree - bank loan. Moneysupermarket will give you a good idea of the rates and repayments you'll get without running a full-on credit check.

[br0wny 27]

I've always found the Apr on the calculator on your own banks site to be the actual rate so you should be ok unless you're rating is really bad

 

 

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[ThatGuyThere 54]

Oh - and don't feel that going to your own bank is worth it - you get no preferential treatment so just go with whoever moneysupermarket say are the cheapest for your needs.

[Nelix 19]

I got 2.9% finance for the balance on mine, dealer could not get near it. As for any finance, you will need to apply to find out if you qualify but as long as your credit history is fine you should get the best rate quoted for the amount you want.

[infernouk 8]

Yeah I've been building my rating since 18 so it's almost maximum possible score, I just assume that Apr is mostly related to salary and mines average so didn't think I'd get the lowest rate also not a home owner, but anything near 3% is affordable for around 10k borrowing to get a 2015 used 

[Mikey P 32]

Toyota price matched a bank loan quote I had to offer HPI for same monthly cost on same number of months, (their first quote was quite a bit higher, so there is movement on any quoted rates they give you).  I paid off early and the settlement figure was fair with no early payment charges etc.