Robsters

So I found a Red 5 door Ford Fiesta ST Line (2017) 22K miles on the clock 1.0 ecoboost engine 140ps. i have been offered a PCP deal of £161 a month for 4 years with a 1k deposit, at the end of 4 years i can buy the car for remaining £4400. my salary per year varys between 18-20k a year my wife also works part time. we really like this car but unsure if we committing ourselves to a large monthly bill, sadly we wanna keep older car we own as a 2nd car so means starting insurance again at 0 years cant believe no deal on using my 4yr bonus on my other car, so that will also mean £74 per month or £800 for 1 year insurance but i guess this will go down over time. thoughts and opinions

Adder

Robsters

i guess major difference is you get a newer car, and could get a loan at the end pay off the last 4k but yeah i see where your coming from. im umming and ahhing over the deal i am worried 161 a month + insurance for a 2nd car will drain us over a long term and i guess in 4yrs the car be 5yrs old and could be a wreck by then

RSMK4TURBO

I wouldnt be putting myself in financial difficulty over a car, unless you can afford to do so without worrying about how you will afford it then i wòuldnt bother.
And the new car feeling soon goes after a few months of payments and you have got use to it.

Robsters

yeah had a few say that to me also the car wasnt brand brand new it was 22k its a shame as it a real nice looking red ford st fiesta as well with 5 doors so ideal for family while looking sporty but ......expensive and make me wonder what first owner been doing to it to clock 22k in 1year, he said the first owner bought it for his son and traded in for a faster car....he refered to him as a petrol head young guy.....not ideal , good thing he was an honest salesman lol

fuzzy

how much would it be to get a bank loan and buy the same type of car as a low mileage 3-5 year old car? that would be yours after 5 years with no lump sum to pay at the end.sounds like that pcp option has been ragged hard with high miles in its first year.

Robsters

i looked into older cheaper ones sadly all 2 doors so means get 5 doors id have to get newer st line which started doing 5 doors unless older 5 door fiesta thats been modded, i have 1 kid so really need a 5 door car. but yeah i agree much better deals out there on st fiesta thats 3-4 yrs old with about same milage, and did you mean car prob been ragged in first year with 22k miles? guess engine could pop any moment? its 1.0 ecoboost

fuzzy

trading it in for a faster car ….bought for his son who did 22000 lmiles in a year and hes a petrol head all add up to it having had a hard first year in my mind !

Robsters

yep my thoughts exactly, something gonna need a repair and they dont wanna give extra warranty without paying another £500 which is a con giving i be paying a pcp for 4yrs this should be inc at least during the 4yrs!! there only 1.5yrs left on the ford standard 3ye warranty , either way i have not rang up and paid deposit this morning so prob realised that deal was fine milage and hard first yr of its life less so

DAN@ADRIAN FLUX

Hi,
If you need any help with insurance at all then please feel free to drop me a line.
Regards,
Dan.

Robsters

thanks dan yeah i mite do that, had a friend tonight who thought pcp deal was brillant for the car his main concern was the engine done 22k in 1yr by a possible boy racer

RichieST

iTrader: (2)

You could get a half decent runner for a couple of grand. Keep that for a couple of years while you save up to buy the car you want. No way would I be a part of that deal on the fiesta.

JayCC

Never understood the need for 5 doors cause you got a kid. Had a 3 door car since kiddo was 10 months old. She is 9 now. Never had an issue.

Always found it easier to put a seat in as well when the seat folds forward. Otherwise you got a static front seat to work around.

Anyways, I wouldn't touch that car. Buy an older model and own it. PCP is great, but not if you're worrying about payments on £161. Plus the balloon payment at the end? Sod that.

JayCC

Dan, you competitive with SkyInsurance? I tried a fair few companies and none could touch them. I'll give you a bell when it's due again.

Robsters

yeah im starting to feel the same and thanks for the advise on 3 door thingy yeah just what i was told, i guess more an issue at the new born stage more id would assume then when they get older right. and yeah not keen to go near it engine prob been fucked within a year 22k milage is a lot then you got PCP deal which i guess u can not break out of during those 4 yrs ?

visa_broke

Wouldn't bother tbh, cars are cheap as hell Just get something for the money and if the worst happens then you are not liable in the long run.

Me and the wife bought a 2017 hyundai tuscan which was my daily car, less than 9k on the clock and someone rear ended it. Insurance fixed it but its wiped off a lot of the value on the car which annoyed the hell out of me to the point its now my wife's daily car and I now drive her old 2014 car with 85k on it.

JayCC

You'll get out of a PCP deal extremely easily.. IF you can pay for it. Just save up some cash, deposit, and finance a little if you are desperate.
It might have been a daily motorway cruiser. It might be an extremely good car. Too many "might's" for me though.

Id much rather buy a car that's been "ragged" than one that's been owned by some old biddy who rides clutches and all that shit.

Eigdoog

Dont do it.

Robsters

yeah i still keen on the car but 160 a lot every month plus insurance :/ 4k to own the car in 4yrs is quite a good offer, i know what people mean about finding good 2nd hand cars out there but also ton of unknowns in that market as well plan is to have a 2nd car for the very long term

this is the car

mattman1234

Don't do it,Better of getting a bank loan

The Crocodile Hunter

What do they have the car advertised for?

If you decide to go for it your basically signing up to spend over £13k on a car but are worried about finding £161 A month. Sounds like you're going to be stretching yourself?

in 4 years if you haven't got 4.4k you'll likely end up using it as a deposit against another pcp deal or similar and the never ending world of constantly paying £££ every month.

most people get bored and fancy a change by that point too if not before so it's unlikely you'll want to put 4.4k into keeping it, especially as a 5 year old fiesta won't be worth a great deal

massivewangers

iTrader: (1)

If you're unsure of whether you can afford it, don't do it. It sounds like it might be too big a commitment given the tone of your posts.

However, despite many claiming PCP is the devil, it can work well. Yes, you don't technically own the car, but your costs are also fixed. It's all well and good buying a car for £1-2000, or buying something that's 5 years old but, while you're saving money initially, the risks can be much greater. A cheaper, older car is going to need maintaining and could throw up expensive bills. Almost everything on cars built this century is expensive. A clutch change can easily cost £1000, same for fuel pumps, injectors and all sorts of other frightening things. You only need a couple of those things to happen over your ownership period and the older car could end up costing you almost as much as the newer one. I should think that if people added up every penny they spend on their car - tyres, brakes, servicing, cam belts etc etc etc, some of them would be surprised at how much they spend, especially if they are paying someone to do the work.

A friend (who is a bit sad) has spent ages on spreadsheets, calculating the cost of ownership for his (and other people's) cars and it's amazing how close it can be in terms of the overall cost over a given period. Some of the older cars he has owned, although cheap to buy, have cost the most overall. Currently he leases a Skoda Octavia. It isn't exciting by any stretch of the imagination, but the deposit was about £500 and it's just under £150 per month for two years. There will be no surprise repair bills, as it's all covered by the warranty. He will just have to pay for one minor service. It's fixed cost motoring and, for a lot of people, it's a very convenient way to do it and worth the extra expense for peace of mind. Every two years, he simply picks the car that suits him best that's on the best special offer and repeats. I would also say, if you're going PCP, only do it on a car that will have warranty for the length of time you plan to own it. Again, it reduces the risk. I cringe when I see people taking out finance on 5+ year old cars with high miles. If it goes wrong, you could lose a lot of money, very quickly. I remember a friend financing a Focus TDCI Sport (several years ago obviously!). The warranty ran out, then the car did it's fuel pump and injectors. It cost £2500 to put it right. He ended up keeping it for years because it had cost him so much. That wouldn't happen on a new/nearly new car with a warranty.

It's also worth noting that you often get better interest rates on new cars instead of used ones. I was looking at a Focus ST a couple of years ago. A new one, with some discount, worked out cheaper than buying one that was six months old because the interest on the PCP was c.3%, rather than c.14% on the used one. A personal loan is often a better solution if you're buying used. The interest rate will typically be lower and you will own the car outright. You will have to borrow the whole amount of course though, as the PCP will have a balloon payment that pushes the monthly cost down. You could always take the loan out over a longer period than you intend to keep the car though. Then pay it off when you come to sell.

Ultimately, buying any car comes with a certain amount of risk and cost. What works for one person won't necessarily work for another.

DAN@ADRIAN FLUX

It's a bit difficult to put a definitive answer on that one I'm afraid. all I could say is that Sky insurance are one of our competitors in the specialist car insurance field.
Regards.
Dan.

STeve

iTrader: (11)

last renewal quote I had from flux made me change insurers lol only a diff of £160

Eigdoog

If £161 is a lot then maybe its not for you, how much is the car? I paid £250 a month for a £9000 car once but then i owned it with no balloon payment over 4 years. Just to compare with however your deal is.

Also to note would be what is the car worth at the end of 4 years? If its worthless at the end then its defo not worth it.


Off topic but Adrian flux was mega money for me, It was something like £3500 when everywhere else was £700 for my RS3. Was just a joke so ive never tried them again.

JayCC

Thanks for the response Dan. I was insured with you around 10 years ago but moved away. Will remember to give you a call next time around!

BigChuck

Robsters

Why do you say on those miles....bare in mind car was new from jan 2017. They ramg me again today i ask them to inc extra warrenty as warranty that car expires in a year and half. I worked out my wages and bills i cud just afford it obv insurancecwud go down once i build more no claims up again unless i ditch old car but ideally want keep other as a spare and for wife when she driving seeing as though we own it. Just thinking with having a child living remote not good be relying one old car hammering a lot of miles

visa_broke

If as you say above you can just about afford it then don't bother as what if something comes up you would lose all what you've paid so far and the car. You say you are worried about an old car hammering a lot of miles, just get hold of something like a b5/5.5 passat 1.9tdi and enjoy that they go on forever and cost peanuts and can be messed around with if you require that.

steppy

No pcp is a good deal, saying that I am on the belief of if it's not in my pocket it doesn't get spent, buy a £1000 car and religiously put the £160 into a savings account each month as if you were paying the finance and don't touch it, you will thank me in 4 years when your nearly £7700 better off

nick46

This exactly! That way if shit happens and for whatever reason you can't afford to put 160 away for the odd month it doesn't matter. Also the car will be yours and you can put as many miles on it as you like, you don't need to worry if you scuff a wheel or pick up the odd car park wound.
Do your homework and you can pick up some very decent reliable cars for not a lot of money. A car that has been with the same owner for a good few years that comes with a folder full of receipts for everything and you're off to a good start. Sometimes a private sale can be better than buying from a dealer as you get to see the cars home and it's owner. This for one can give you a good idea of what sort of life a car has had. A car with a 100k on it that has had the same owner for the past god knows how many years that comes from a good clean family home can be a much better option than buying a low mileage car from a dealer who doesn't give a fuck what sort of life the car has had and is only interested on one thing.
Buying a second hand car is a minefield, but like I said, do your homework and there are some gems out there.
I'm sure if there is someone on here who is not too far from you, they'd be more than willing to help you find a decent family car. In fact if you're anywhere near Bridgwater in Somerset I'll be more than happy to help you out.

Robsters

thanks for all help and advise. I agree always gems out there. i guess what i have noticed these days is 2nd hand car market not as good as it was 7 years ago when i bought my first fiesta. i feel now people ask a lot of money even for 10 year old car. sure can always barter them down. i get what you mean can see where it come from and sort of people but a used car is still a used car, like anything used it won't be 100%. i had some mental repairs on my car over the years, first year i owned it i had the clutch go but luckily my 7 yrs owning it the last 6 yrs clutch been fine but i dont tend to rest my foot on it , also I had a serious issue with a coolant leak to the point of putting a new manifold onto the engine from another fiesta down the scrapyard just to keep the car alive, haha. A lot of my friends and family laugh my car keeps going, even my mechanic says he has no idea how my 17yr old fiesta is still going. I guess thing is i am now torn between going 2nd hand car again or for a newer used approved car. my wife found this car tonight on there site....lower milage but slower engine but not much difference in price over the 22k st line ford. https://www.baronsgroup.co.uk/ford/u.../zetec/rv67yxb

i have a 2 year old child so def feel like not safe be driving him around in a 17yr old rusty car even though i am careful i cant stop other drivers from doing something dumb

nick46

A few other things to consider:
The Fiesta is quite a small car if you have a family. Say you commit to one of these newer cars and then in a couple of years another child comes along. You'll then be stuck with a car that you may not be able to afford and a car that is way too small.
Honestly if I were you I'd be looking at something like a mk2 focus (bigger boot than the mk3) or even a mondeo - loads of space for your family even if more kids come along.
Plus as others have said, the fiesta will be worth nothing in 4 years so are you really going to be willing to put 4k in to a car you've already had for four years (I know I wouldnt), providing you can save 4k in the first place.
My advice, get a loan for lots more than you need to get the cheapest interest rate. Then buy a car at a sensible amount of money. Then with what's left, pay it off the loan. The term will then be reduced and you'll still have the low monthly repayments.
This is exactly what we did with my wife's car. We wanted 4k over 3 years - we borrowed 7.5k over 5 years. The monthly payments were less than borrowing 4k over 3years due to the lower interest rate. We then bought a car for 3.5k, spent 500 On putting a new clutch in it and then payed the remaining 3.5k off the loan. This then reduced the term to just over 3 years while still having the nice low monthly repayments. So in a nut shell we got 4k over 3 years for quite a lot less than we should've. It was actually the bank manager that advised us to do it that way. When I thought about it, it was a no brainer.

BigChuck

The Crocodile Hunter

not that I'm in the market to get a bank loan ever again but I never knew you could do that!

Saving and buying outright is all I'll ever do now. Personal Finance of any kind its just a mugs game and you want something you can't ultimately afford.

I can understand from a business point of view as your earning money out of it

nick46

Finance is definitely a mugs game. Been there for that and got stitched up!
Bank loans these days are just so cheap, and like I've said if you play the game you can get them even cheaper, and you can even get around any penalties for paying them off early. In our situation that I mentioned above, the bank manager even told me to go home and do it online as the interest rate was even less than he could offer in the bank. The only clause was a early repayment charge. He then explained that to get around this should we want to pay it off was to pay everything off apart from one month. Then the following month the payment wound go out as usual and the loan would then be cleared with no penalties.
If you're really clever about it you could probably get an interest free credit card and do it that way. Then when the interest free period runs out do a 0% balance transfer on to another 0% card.

nick46

Having said all that, I am a firm believer of living within your means, not spending money you don't have and trying to be something you're not and just trying to keep up with the Jones'. I got finance on a motorcycle when I was young and stupid - never again!
However, when it comes to cars which are a necessity, there are few families who have a few grand just knocking about that they can afford to blow on a car. Therefore a loan is the best option as it's by far the cheapest (unless you're very clever with a credit card). The loan we have for the mrs car is the first loan I've had for many many years, but unfortunately needs must. I would only ever borrow money if I could easily afford it and I would never stretch myself cos you just never know what's around the corner!

RichieST

iTrader: (2)

I often use an interest free credit card for large purchases, cars, furniture, other house related stuff, eBay etc. You also get a bit more protection from the card issuer on a credit card purchase.

Once my 0% deal is about to expire, if I have any remaining balance I will simply apply for a new 0% balalnc transfer and purchases card and transfer the balance (usually there is a 2% charge to do this so I try and avoid it).

My last car i bought was 10k, it all went on a 0% credit card, I paid 4k off straight away with the sale of my old car, then paid off a grand a month so the debt was cleared in 6 months, without paying a penny of interest. Of course you have to resist the temptation to blow the lot on shit you don't need.

My dad also uses a credit card for every purchase he makes, as the card issuer gives him points that he can use for cheaper holidays etc. He clears the balance in full at the end of every month so never pays any interest.

The Crocodile Hunter

0% finance deals if you can get one are different as you're not paying more just to own something. 0% credit cards are fine as long as you're disciplined with your finances, and don't fuck up and miss a payment as you lose the 0% offer

personally speaking, if I was really in need of something I'd just get a personal loan and buy it

nick46

Yeah you definitely have to be disciplined, even with the loans. If you go down the road I did and borrow way more than you need, to benefit from the low interest it can be very tempting to spend the lot instead of sticking to your budget. If you can discipline yourself then there's definitely money to be saved.
I like the idea of getting a credit card to buy everything on like has already been mentioned, so that you get discounts on stuff or cash back etc, but there's always that temptation there so as yet I've steered clear of credit cards all together. In fact I've never had a credit card.