Nixon

Ever since I was a kid I wanted an Impreza and yes I've had two recently but they were both classic MY99's costing no more than £10k a pop, little enough that I could buy them outright. Now that I'm looking at new/nearly new STi 8's in the 22k region I'd need to take out some finance, say 12k which would skin me for £350 or so a month over a 36 month term. I already have a mortgage, council tax, bills etc to worry me with (not staying at home!) which alone mounts to about £900 a month so with a loan for an STi 8 and some insurance I'm pitching my outgoings at about £1,300 a month leaving me about the same in 'disposable' income which would also need to cover servicing, mod's, fuel etc.

I will only be using the car for pleasure, covering no more than 8k a year as I already have a company car. Probably over the 3 year term I would only need 2 or 3 sets of tyres and twice yearly services (all minor if bought new)... do you think I'd be stretching my finances too far to live the dream?

Cheers, Duncan (22)

Danny B

Don't buy a car that that equates to 50% of your annual income ie- if you earn £30k per year you should be looking at cars in the £15k bracket and if you earn £15k a year you should be looking for cars about £6k or £7k.

You will not enjoy the car if you struggle financially, there are more important things to worry about than having the latest & greatest parked on your drive IMHO.

Nixon

Is that a well know statistic? I earn in the region of 45k a year, after pension, tax and NI I end up with about £2,600.00 in my pocket. The question was more in relation to what people earn and what they consider 'normal' in the way of financing cost...

Danny B

Christ I wish I had been earning £45k @ 22 !
Provided you have no other existing loans, credit card debts etc to pay off I'd say that you could afford to finance at least £12k over three years without too much of a struggle.

Ray_li

i take it you're in IT then

Abdabz

I use Gran Finance - much more competitive than the high street loan folks

chris's scooby

Based on those figures, as long as you don't have other loans and/or credit cards you should be fine.

If you're not sure why not try putting the money for the loan plus a bit for tyres/servicing/fuel/insurance by in a separate account each month and see how you get on.

Mitchy260

Why tell us your age matey, what do you want, a bone??

There are plenty of people on here much better off than yourself but they don't feel the need to go bragging about it.

Just buy the car and stop thinking about it. £1300 after everything is paid for is more than enough to live on.

Nixon

Yeah why not, a bone would be nice

I feel the age is entirly relevant as I wanted and thank those who gave constructive suggestions, everybody's situations vary dramaticaly and hence I was wanting to compare my dilema with others. At my age there may be many that suggest in investing in property etc and not a car!

I hate the feeling of being in debt (I already have the stresses of running my own construction company) and wanted to know what you lot made of paying £350 + a month in paying off your chariots!

john banks

Imagine the interest rate on your commitments tripling and think again?

If it doesn't then think of what you'll have saved by shifting your debt at a young age....

I'm 30 and if the interest rates tripled I wouldn't mind at all and would not have to change my lifestyle one bit, because I've not lived on the bleeding edge through my twenties.

Nothing to do with income levels, just living within your means.

You did ask...

Nixon

Sounds like major common sense! God I want this car, but maybe I should hang on till some dividend and buy it in one swoop (here's hoping!)

Do many of you lot have finance on your motors?

john banks

Maybe it would make an interesting poll?

Nixon

Thats what I'd thought, but I don't think as a lowly non-member I can start one??

sainge

well it doesnt have to just apply to subaru owners.

SiDHEaD

You can, but you have to add it shortly after starting the thread.

Oh and my car is £500/mo and I have a lot less left over than you as my wage is a bit crap. Just depends on what you want from life. At the moment my car is my hobby/interest and I don't waste money on drink etc..

alwong

I think only yourself will know what you can live with. It doesn't make a difference what you earn as most live to their means. You could be on 45k a year but have an expensive lifestyle.

Tone Loc

iTrader: (1)

If you own your own construction company i'd think long and hard before commiting to a big finance deal, 45K or not. Construction can be a varied industry to be in (as i'm sure you know). Can you guarentee the 45k per year for the next 3 years as a self employeed person.... if you can and have £1300 as disposable income after all bills paid i'm sure you can just about manage on that.

Tony (no finance on my car..... but i have owed it for 5 years now )

alwong

From what you have said. You'll need to take into account insurance (3k? maybe for someone at your age) petrol £120 a month approx for 8k a year)

Sounds well in your financial limit.

john banks

High interest rates would presumably be a double whammy, not only for the debt but for your business?

chris's scooby

Buy it!

At the end of the day if the worst comes to the worst you can always sell the car.

asagi

I bought my UK00 last year.

With Part ex I had to find £6000. I had 3 choices; pay cash, get a loan or add it to the mortgage I chose the second over 3 years as the interst rate was so good - will cost me £500 in interest over 3 years.

If you are very disiplined than adding to you mortgage can be an option, if it is fixed. Pay monthly into you mortage the cost of the car over 3 years and hey presto a low interest fixed loan payed off - ONLY FOR THE DISIPLINED AND PROVIDED YOU HAVE EQUITY IN YOUR HOUSE.

If the car is new than maybe take out a baloon finance arrangement.

Cheers

john banks

Worst coming to the worst may mean selling the car in a depressed market having paid front loaded finance on it whilst it has been depreciating quickly.

TopBanana

It's up to you, but I'd personally never take out finance to buy a luxury item like an flash car. Wait a few years. At your age I had a £4000 Renault Laguna V6

Danny B

Get the £12k over 3 years fixed at the best rate you can find. Don't pay anymore than £20k for a MY2003 STi as they are a few grand less from private sales and you will still have 2 years warranty left.

This one looks a good 'un http://bbs.scoobynet.co.uk/showthread.php?t=381509

Prodrive_Eddie

Try this, I did and have been a very happy customer for the last 4 yrs or so...

http://www.alliance-leicester.co.uk/...r&ct=loansmenu

Only my experience, not trying to make a buck! I always put residual in my cars. Primarily beacause I couldn't afford to buy outright, but also because I see my car as a necessary monthly expense (only doing 10k p.a. for SDP+C).

Ed

graham72

hi duncan! just wondered did you send me a cheque in the end? havent received anything and just wondered if its gone awol in the post!