Kid Dynamite 7317 Posted December 27, 2010 Share Posted December 27, 2010 Anyone ever done it before? Our lass could do with a new car before her banger needs an MOT in Feb. Her mother has just got a Citroen C1 on hire purchase for £120pm with the option to buy it or give it back after 3 years. After looking around I see most companies do similar deals, Ford Ka and Renault Twingo for example. Anything I should be wary of? Link to comment Share on other sites More sharing options...
bawan 0 Posted December 27, 2010 Share Posted December 27, 2010 Anyone ever done it before? Our lass could do with a new car before her banger needs an MOT in Feb. Her mother has just got a Citroen C1 on hire purchase for £120pm with the option to buy it or give it back after 3 years. After looking around I see most companies do similar deals, Ford Ka and Renault Twingo for example. Anything I should be wary of? The small print Link to comment Share on other sites More sharing options...
Tom 14021 Posted December 27, 2010 Share Posted December 27, 2010 I thought most *young* people got their cars on HP? Two good friends, one a Dr and one a soldier both pay monthly for their cars. I thought it was the norm. My poor brain. Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 27, 2010 Author Share Posted December 27, 2010 I thought most young people bought a banger for a year or two to get their insurance down. Thats what most of my mates did anyway Link to comment Share on other sites More sharing options...
Tom 14021 Posted December 27, 2010 Share Posted December 27, 2010 I suppose at the end of the day you can only do what you can afford to. So I suppose you have to do the math - after paying for a wedding a banger might make sense! Link to comment Share on other sites More sharing options...
peasepud 59 Posted December 27, 2010 Share Posted December 27, 2010 Doesnt the NHS do a rental scheme from wages which works out cheaper than buying on HP? Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 27, 2010 Author Share Posted December 27, 2010 Theres not much difference money wise though, you just have to give one back when you have finished paying it off! Its not a question of if I want to do it, just asking if any else on here has? Link to comment Share on other sites More sharing options...
Tom 14021 Posted December 27, 2010 Share Posted December 27, 2010 Theres not much difference money wise though, you just have to give one back when you have finished paying it off! Eh? Hire Purchase. It's just monthly payments, you don't have to give it back! Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 27, 2010 Author Share Posted December 27, 2010 Theres not much difference money wise though, you just have to give one back when you have finished paying it off! Eh? Hire Purchase. It's just monthly payments, you don't have to give it back! You get the option of a final payment of £3-4k to keep it or you can just hand it back and end the contract Link to comment Share on other sites More sharing options...
peasepud 59 Posted December 27, 2010 Share Posted December 27, 2010 Theres not much difference money wise though, you just have to give one back when you have finished paying it off! Its not a question of if I want to do it, just asking if any else on here has? The salary sacrifice scheme ran by Northumbria NHS is a good one and includes everything from Insurance to Road Tax I believe. The important thing about it is though that it works out cheaper. For instance if you took a car that cost £300 per month from your salary it would only really be costing you just over £230 per month after tax and NI is taken into account. Link to comment Share on other sites More sharing options...
Tom 14021 Posted December 27, 2010 Share Posted December 27, 2010 Hmm my mates must be on something different because they are just paying off the cars. I got a guitar on HP and all it was just monthly payments for a fixed term. I suppose I may not be the best person to ask for advice on HP regarding a car!! Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 27, 2010 Author Share Posted December 27, 2010 I know, but I cant get over the fact that they are still taking £300 off my wage for a Toyoyta Aygo , regardless of the savings I make with Tax and NI. Lowers your pension contributions too. I'll still put a couple of quotes in though. I'm after a job in the community which halves your lease car costs as you are then an essential car user. Link to comment Share on other sites More sharing options...
Dr Kenneth Noisewater 0 Posted December 27, 2010 Share Posted December 27, 2010 (edited) I thought most *young* people got their cars on HP? Two good friends, one a Dr and one a soldier both pay monthly for their cars. I thought it was the norm. My poor brain. There's two ways of doing it though Tom. 1) You get a loan (ie the bank pays the garage for the car, and you pay the bank back an agreed amount per month over x number of years. Once you've paid the bank back the whole amount it's yours. Or 2) The sort of think KD is on about, where the garage owns the car but you are paying to lease it. At the end of the fixed term you either give them the keys back or have to pay up the remainder of the cars value in a lump sum. In both cases you can pay a deposit at the start to bring the monthly price down. Edited December 27, 2010 by Dr Kenneth Noisewater Link to comment Share on other sites More sharing options...
peasepud 59 Posted December 27, 2010 Share Posted December 27, 2010 I know, but I cant get over the fact that they are still taking £300 off my wage for a Toyoyta Aygo , regardless of the savings I make with Tax and NI. Lowers your pension contributions too. I'll still put a couple of quotes in though. I'm after a job in the community which halves your lease car costs as you are then an essential car user. Depends on how much insurance would cost you I suppose. Your best bet though would be to wait on that community job, anything that reduces the payments would be daft to turn down. Link to comment Share on other sites More sharing options...
Ruler of Planet Houston 1 Posted December 28, 2010 Share Posted December 28, 2010 (edited) Depends on the deal. I have had a couple of hire purchase cars and both were a fairly small deposit (£500 & £2000) and the payments were over 5 years. After 5 years it's mine. After 2.5 years (and any time from then) I can hand it back and cancel the direct debit and we are all square. First one I had for a couple of years and traded in (they ended the hp and added the 6 months balance onto my new hp) - the second one, I paid for about 3 years then handed it back...squits! I chose those schemes because I didn't fancy the thought of a lump sum to keep my car, not knowing how my finances would be in a few years time. Some allow a deposit and then 60 equal monthly payments, some no deposit and 60 smaller equal monthly payments followed by a lump which would have been the deposit - and some do no deposit and no final lump sum (but interest is higher) Probably wouldn't do it again but that's just personal - don't like how much interest I was paying. But it's good if you think you will be after something else every few years. Edited December 28, 2010 by Ruler of Planet Houston Link to comment Share on other sites More sharing options...
Ruler of Planet Houston 1 Posted December 28, 2010 Share Posted December 28, 2010 On that note...when you hand the car back, you have to drop it off at an auction place (well I did). If you drop it off and then hang around and follow it to the auction, you can probably buy it back for a bargain! Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 28, 2010 Author Share Posted December 28, 2010 Well Im off to Evan Halshaw/Renault/Citroen tomorrow so we shall see how it goes. I'm not the most patient with car salesmen, slimy pricks most of them. Link to comment Share on other sites More sharing options...
Dr Kenneth Noisewater 0 Posted December 28, 2010 Share Posted December 28, 2010 Well Im off to Evan Halshaw/Renault/Citroen tomorrow so we shall see how it goes. I'm not the most patient with car salesmen, slimy pricks most of them. Aye, most of them. It's a buyers market, so if they can't do what you're after walk away. VAT goes up next week mind. Link to comment Share on other sites More sharing options...
Ruler of Planet Houston 1 Posted December 28, 2010 Share Posted December 28, 2010 Think about how long you will keep the car. If you can see yourself having it still in 5 years, then a loan is gonna be best. If you intend to get rid and keep renewing with a decent car, hp is great for that cos you end up paying a little over half the value of the car and getting rid of it when it is worth less than you owe (if you get my meaning). Mine at 2.5 years old when I handed it back was probably sold for about £5000 but I could have paid another £10000 to keep it. Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 28, 2010 Author Share Posted December 28, 2010 Well Im off to Evan Halshaw/Renault/Citroen tomorrow so we shall see how it goes. I'm not the most patient with car salesmen, slimy pricks most of them. Aye, most of them. It's a buyers market, so if they can't do what you're after walk away. VAT goes up next week mind. Hence the urgency. The Citroen C1s do 70mpg, are Band 1 to insure, cost £20pa to tax and can be had for around £6500 OTR Yes they have zero street cred but my Mrs doesn't give a fuck Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 28, 2010 Author Share Posted December 28, 2010 Stop being a vain bastard and save yourself a fortune then Link to comment Share on other sites More sharing options...
Mac-Toon 1 Posted December 28, 2010 Share Posted December 28, 2010 Theres not much difference money wise though, you just have to give one back when you have finished paying it off! Its not a question of if I want to do it, just asking if any else on here has? The salary sacrifice scheme ran by Northumbria NHS is a good one and includes everything from Insurance to Road Tax I believe. The important thing about it is though that it works out cheaper. For instance if you took a car that cost £300 per month from your salary it would only really be costing you just over £230 per month after tax and NI is taken into account. My mothers partner does that. He's just got one of them new VW Sciroccos on the nhs deal. He's had a civic, slk, primera and just gives them back after 2 years. Seems canny I think. Link to comment Share on other sites More sharing options...
jaythesouthernmag 0 Posted December 28, 2010 Share Posted December 28, 2010 One if the main things is not to go over the agreed mileage as they charge any excess per mile. If you do less than 6-7 k per year then no probs Link to comment Share on other sites More sharing options...
Kid Dynamite 7317 Posted December 28, 2010 Author Share Posted December 28, 2010 Done. They offered me a super special never to repeated offer of the C1 with VTR trim (leccy windows, AC, central locking) for £148pm for 3 years. Told them to piss off and they ended up doing it for £122pm. Her mother was foaming as she had signed up for the next model down for £128pm That will take her through her Nurse Training and then she'll be on enough to afford something decent so we can just cancel the lease for no extra cost. Chuffed as her Y reg Ford Ka was due its MOT next month and was probably going to fail on about 10 different things! Link to comment Share on other sites More sharing options...
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