Bailes1992

Right I'm starting an apprentaship in September.

I have £2000 savings and hoping in a years time I will have £4000 savings. I am sure I can get £1000 for my car which is a £5,000 deposit.

Now first year pay is pretty crap but I am certain I can get that extra £2000 saved up no problem.

Now I am planning on getting a new car September 2012. At the same time my pay will go up considerably, well i say considerably it's an estra £75 a week which is alot of money to me.
So in the second year I will be earning a minimum of £270 a week without overtime.
How much Tax an Ni would I be likely to have to pay on that?
My only bit expendetures are £30 a week lodge, £50 a week savings and if I was to get a new car, £60 a week finance. Leaving me £130 take away tax per week.

Car I'm looking at is a Vauxhal Astra SE 1.3 CDTi with a shitload of extra options comming in at ~£20,000.
Over 5 years with a £5000 deposit is £60 a week/£240 a month.

Also Vauxhall has a full lifetime/100,000 mile warrenty which really appeals.


Can anyone help me make my decision. Is it a good idea? How much tax and NI am I likely to pay on £270 a week?

Any advice appreciated. Bailes.

maxest

iTrader: (1)

£20,000 on an astra.... BAD IDEA!!

MadMac

There are plenty of options you can take I the finance area. First thing is to look at your budget at time of purchasing. Not now, not what you guess may be your income because you have to guarantee you have the money to make the payments now, but you cannot guarantee your future income.

On an income of just over 1k a month I would take home of £800-£900 a month.

Now, whats your monthly commitments? How much is the insurance? How many miles are you going to do in it? What's your petrol costs? What to you need to spend on your "living" and fun stuff? TBH I recon your going to spend at least 50% of your income on the car.
I would also check your figures, is that finance at 0% APR? If so it tallies up. But make sure there isn't any end of finance fees.

Personally, I can't really recommend getting finance o a brand new car at all. You will probably loose your deposit within a year in depreciation.

My recommendation, if you need to get a car on finance try to minimise your costs. Buy one that's 2/3 years old and depreciation becomes less of a problem.

Eigdoog

+1


It better do 120 mpg for that price.

Mike C

iTrader: (1)

Today, £5k buys you a properly decent car. Why use it as a deposit on an awful car which will be worth less than the deposit by the time you've finished paying (a ludicrous amount) for?!

martynhomer01

iTrader: (1)

20k for a astra over 5 years............. you would be paying at least £25k back by the end....

Rst tyrone

iTrader: (4)

No way would I pay 20k for an astra 1.3 diesel mite aswell go get a brand new fiesta or somthing similar and save yourself 8/10k..

Bailes1992

I won't be getting it for at least a year, just exploring my options right now.

My insurance on the Astra will be £1000 this time next year.
I will be putting away £50 a week in savings, Insurance, Tax and MOT will be comming out of this. The rest will be savings for a rainy day.
My current car does about 40mpg on the motorway, my Aunti has the same engine in a Corsa and gets about 85mpg on the motorway.

The only reason I would get a brand new Astra over a 6 month old one is the warrenty. If I get a Brand new astra on finance for 5 years, keep it for 6 or 7 then I will never have to worry about repair costs. Only servicing and maintenance.

I am tempted to just get another Peugeot 406 for £2000 but I need something reliable and something thats going to be good on fuel. If I get 60mpg out of it I will be amazed!

martynhomer01

iTrader: (1)

mate, dont think about tying all of your money up into a car just yet. you will find the finance a real tie and to be honest, i would be surprised if you even got it on a small wage like that. dont forget, if you are off ill or break a leg or something, which doesnt enable you to work, then you still have to keep the payments up!!! buy yourself a cheap runner for the time being matey,

DanW@FastFord

iTrader: (1)

You need to stop and look at the figures. Have you worked out how much you'll actually be paying out over the duration of the loan, and the massive depreciation you'll face? You can get a 5 year old 1.3 Diesel Astra for £3,000!

Sure it has a warranty - But if you consider how much you'll actually be paying back on the finance, plus depreciation you'll discover that the all-important warranty is going to cost you over £15,000 for the time you have the car!!!!!!!!

Do you also want to tie yourself to one very ordinary car for 7 years??

It's economic madness. Why don't you do the wise thing and live within your means and get a £5K car. Maybe get a small loan for a couple of grand to pay for the insurance, and to keep in a 'pot' should the car need fixing?

JayKay

Ditto.

Buying the Astra you have to account for Finance, Insurance, Fuel etc. Buy a car for 5k, and you only have to pay for Insurance and Fuel. Even if it isn't as Economical as the Astra it definitely isn't going to cost you an extra £240 a month to fuel. And it isn't going to cost an extra £240 a month to fix either tbh.

20k on a boggo Astra is stupid. Fair enough i've got my year old Ibiza on finance - paid £8500 (but a decent deposit)for it and I pay pennies finance each month, which is why I did it. I could have paid the price in full but I put half deposit down, kept the other half in the bank for a rainy day and pay less than £100 a month. Should the shit hit the fan though, I know I can square the remaining balance up in cash!

If you have 5k to spare, spend it to buy the car outright or use it as a decent deposit on a car costing no more than 10k...

Just because a car is older doesn't mean it is any less reliable, providing it has been properly maintained. I'm also dubious about these extended warranties manufacturers are providing (i.e. 5-7yrs, 100k etc) - i can imagine that once a car has reached 90k and is 5 years old they may be reluctant to carry work out under warranty, blaming the faults on 'aggressive driving styles' etc.

Lambchop

iTrader: (1)

I think you're off your rocker trying to predict the future without a crystal ball and relying on hairy ones.

Get the job, see how the saving goes and only then start thinking how to spend it. At the moment instead of thinking about finance you should have a wank

Bailes1992

Well I was looking to Part ex my car, and pay another £1,500 and get a nice Peugeot 406 Executive HDi estate. And leave a few grand there for a rainy day. Seems like the best option.

Mr S1

iTrader: (2)

£20k for an Astra - you're off your conkers mate. As said before, £5k will get you a perfectly adequate car that won't depreciate anywher near like the new one will.

Bad, BAD idea.

maxest

iTrader: (1)

1st a 20k astra,, now a NICE 406 estate,, what have you been smoking

Stick with your focus and take chops advice and have a wank

Bailes1992

I'd love to stick with my Focus but the car needs a good respray and the engine is no good for motorway driving really.

I really fancy a new car, but taking aboard what most of you are saying. I'l wait and get a 406 for a few years

Iain Mac

If you are determined to buy an Astra for the warranty, in a year's time you will get a 1-6 month old pre-reg or ex-demo for little more than half the new price with the balance of the warranty.
You won't get 0% interest from Vauxhall, but the dealer may run a local scheme, though you can maybe haggle more off the price of the car if he isn't paying an interest subsidy.

MadMac

Absolutely spot on, this is the correct way to use finance.

Ive been in debt before without the cash in the bank and it's a total bind. Thesedays, unless I know I can pay it off when I want to I don't borrow the money.

I wish more people were this sensible.

Rick Astley

I'm sorry did he say a 1.3 Gastra for £20,000?

gouch1

astra 1.3 shite 1.7 shite you'd be far better getting a vw diesel lifetime warrenty our not ..and i own a vx diesel.

RichieST

iTrader: (2)

Fuck me A 1.3 tractor powered astra for 20k

Rab

I'd use your 5000 and buy a car with that. You get alot for your money now. I would reccomend NOT getting finance, as the way jobs are at the moment who know when you might end up out of work??

Take it from me, I had car finance early in life and I lost my job. I was then saddled with 349 quid a month! It caused me no end of grief, and essentially, ruined my credit rating for 5 years. So, I learned to live quiet and not get into debt for anything. And trust me, theres nothing nicer than not spending all your take home pay before you've even been to the cashpoint. IMHO, if you can't buy it without finance, don't buy it. 5K will buy you a nice car!

Eigdoog

Is there a link to this 20k car?

I would rather get a evo 10 for 16k it dont do 40mpg or even 20 but its not a overpriced astra.

gordyshreds

do what i do and have a wank before making a financial desission.
Pre wank- I reallllly need a 1.3 Astra brand spankers for 20k
Post wank- what the hell am I thinking, i dont even like cars

xr_craig

iTrader: (2)

Are you insane? You fucking must be if your choices are a 20k astra or a 406 HDi at about 18 years old. When i was 18 i blew all my money on as fast a car as i could afford and going out.

Live your life, don't get tied up with finance on a shit car.

yellowsierra

ANY car on Credit is a bad idea, Theres loads of nice tin out there to be had for 5 geez.

The best Credit is NO credit

Ian

Isaac.Hunt

Has your apprenticeship been exposing you to harmful chemicals? If not, what on earth are you thinking?!

Finance on a £20,000 car when you won't even be on £20,000 a year? Jesus wept.

As a guide, I would not fancy finance of £20,000 on under a salary of £45,000. At £45,000 per annum someone should be saving to buy a car anyway or financing something cheaper.

Financing cars (for anything over a basic second hand car for work purposes) is ideal for people who never have any money to look like they have more than zilch until their cars are repossessed. Some sensible people have finance but they are the people who are using finance with cash in the bank like Jaykay up there.

I suggest if you are intending to live by finance in this manner a prudent step would be to look up on HMCS to see which county court you'll need to attend for your future bankruptcy/repossessions proceedings of various goods. I saw a letter the other day for someone who had bought one of those metered televisions and owed £4,000 having only paid £150 of payments. £4,000 for a bloody tv. Jesus wept.

ST24MK2

Madness mate, you could get a half decent motor with 5 grand, nevermind spunking out 20 grands worth on a pissy 1.3 engined astra, jeeze, why you want one of them i dont know, ive noticed the Ford market is so cheap lately when trying to sell a friends 2007 fiesta ST, thinking it was worth about £6500 ive found out id be lucky to get £4500 for it! you can pick a focus ST170 up for around £2500 on a 52 plate !

Mondeo ST TDCis, New shape astras, vectras, can all be had for the 3 - 4 grand mark !

RS Grant

iTrader: (1)

Your current car isn't costing you anything and is doing 40mpg... that's a nice place to be, stop trying to jump ship and find something that does everything, because the perfect car doesn't exist mate.

Have you talked to your dad about waxing 20k on an Astra?? I hope he sent you to your room without tea and bright red arse cheeks, because that plan is absolute madness.


Cheers,
Grant

Nick.W

iTrader: (1)

spend 5k on a decent car and keep your take home wage for enjoying yourself mate. You are young and will loose interest with finance and gash new cars after 1 year max.

You would be mad to spend 20k on a shite car thats worth fuck all at the end of the payment term. Both my brothers did the same when they were young and wish they hadn't.

vaughant

iTrader: (1)

Do what I should have done years ago,get a nice el cheapo reliable motor like a passat tdi as there's very little to go wrong,unlike these tdci mondeos etc,cane fuck out of it,STILL get great mpg,not really worry too much about parking it and getting it scratched/damaged etc,and enjoy your cash,perhaps buy something a little bit cheeky for the weekend once you get your £1000 a month.
I bought an UNO turbo,loved it but didn't love the constant breakdowns and bollockings for being late etc,got a golf gti mk1,great til the engine went,felt slow compared to the UNO,then got a series 1,oh dear,never got it to work properly,sold it as a going concern.

My point is,throughout this time I had use of my mums fiesta,which NEVER broke down,it was staring me blue in the face,if I'd got my own fiesta,I could have really enjoyed the other cars for weekend use only,which I eventually did a few years later and have done ever since.