Quote from: bytejunkie

Quote from: knightywhat he means is get a morgage that coveres buying a house and paying off the car hpi

thats crazy financial advice.
youre gonna be paying for a 10k car for 25 years.

not really, it all depends on your morgage tbh... a lot of the time it can be a better option than paying the morgage and the car payments at the same time.... which when your buying your first house can be a big deal...

either way.... your better off getting something cheaper

Quote from: bytejunkie

Quote from: knightywhat he means is get a morgage that coveres buying a house and paying off the car hpi

thats crazy financial advice.

youre gonna be paying for a 10k car for 25 years.

Not quite, you may be paying of both simultaneously but the interest rate for the car loan could be far less than if you continued to pay separate. In the end it could work out cheaper overall, especially if you were to pay the money you would have had to fork out for both loans into the mortgage. You might end up paid off a few years early and that could save you a lot.

By the time you need another car you should have gotten a raise anyway.

Quote from: Serious

the interest rate for the car loan could be far less than if you continued to pay separate.[/quote]

nah, not at all. absorb it into the mortgage and youve still got the outstanding amount at the mortgate rate for the duration of the mortgage.

a good mortgage right now is 5% ish. car finance, find me some around 6.9%... unless it was bought new (maybe as low as 0%) which we dont know. if it was, its a real easy decision.

however, 3 years of 7 % against 25 years of 5% which is subject to change... I know what Id go for.

and as knighty says. the best way is always the cheaper car. aint many cars increase in value the same rate as houses. and a fiests ST certainly wont.

Quote from: bytejunkiehowever, 3 years of 7 % against 25 years of 5% which is subject to change... I know what Id go for.

Pay the money into the mortgage, you have 3 years to pay off the car, but you just keep paying at the same rate. Now you have saved the 2% a year but are also paying off the mortgage quicker.

If you can get a zero% rate then all is good, otherwise go for the cheapest option. Some peeps wouldnt be able to pay for both their mortgage and the car over three years.

I have a feeling that the car thing is somewhat more complicated.  

I too have a car on finance, have got 2.5 years to go and have been paying off for 1.5 years.  Now the problem is if you give it back, then the car has depreciated and by jumping out the deal with the finance company means that you may well incur a get out cost as well as no doubt owing them money given the car is worth less (even though you have made payments) ... its like if you jump out of a mortgage before they want you to, normally a high cost to do so.  Chances are you will give the car back and no doubt owe them money ... you need to decide if this is worthwhile.  I hope this makes sense, but I have looked at this myself as both my wife and I have a car and want to be a 1 car family and it really did not work out in my interest to do so.

Now, I am not saying this is spot on, but I do remember it not being a good idea.  Finance companies make it really hard for you to break out of their deals.  The majority of those taking out finance will never be that bothered to really scrutinise the small print esp. at the point of buying a car.

Good luck though!

well at the moment ive been offered Ã,£8700 for it, and i owe Ã,£8900, so that isnt too bad to be honest. yeah, id have to pay Ã,£200, but to be honest its still going to be cheaper than to keep the car!

Quote from: chrisdickowell at the moment ive been offered Ã,£8700 for it, and i owe Ã,£8900, so that isnt too bad to be honest. yeah, id have to pay Ã,£200, but to be honest its still going to be cheaper than to keep the car!

Well done mate; thats a really great deal.

They wont deffo want my car though! He said thats what they would give me. But he didnt check his stock list, so will have to pop and see them when im home next.