Finance - how much would you pay?

[mono-stereo]

What would you guys say is a 'sensible' limit in terms of monthly imcome to spend on a car loan repayment in terms of % of your monthly salery?  basically im 26 and earning around 24k, i would love a mk5 gti but im not sure if im dreaming or not.  i dont really have any major outgoings apart from rent so i think now may be a good time to take the plunge, but i dont want to regret it!

any thoughts, or anyone in a similar position?

[>>Mart<<]

work out how much you have each month to pay out then work out how much you can afford
dont forget to put insurance / fuel costs into it
and make shure you have enough left for food clothes and beer money
200 to 250 maybe more if you think you can afford it

[J.stafford16v]

For a start finance is worth it if you are planning to do alot of miles and don't want to own car i.e. 5 year finance and give it back after 2 1/2 years and 100k (by the way finance company's don't like us to do this). Personal loan may be cheaper and the car is yours straight away, with regard to finance make sure they only make the bear commission.

24k you should be alright as long as your not cruising for hookers all night lol

[Martz]

Never put yourself in a situation you may regret. If you want finance get a bank loan or a big deposit.

[mono-stereo]

Cheers for the replies guys,
to be honest  when I say ‘financeÂ’ I actually mean  a loan from my bank, as you say, I really donÂ’t want to end up regretting my decision, but to be perfectly honest, I donÂ’t mind paying the loan over 5 years and taking the interest hit, rather then wait for 5 years, does that make any sense? 

possibly not financially, but then again, I think people that can afford to just buy these things out write are either really rich or on there 40s!

[madsingh]

or ask vw to give u with 0% over 2/3 years?

[maximk2]

In my opinion unless you really need a new car then dont get finance or take out loans on what is essentially a depreciating asset. If you get a mortgage its different cos the house is gonna go up in value so your beating the bank but with cars first your paying for the interest and then hammered on depreciation. I made the mistake of gettin a mini cooper on finance 15500 quid new 465quid amonth ovwer three years with no deposit or final payment sold after 18months for 7750 with 55k on the clock needless to say I had to fork out another grand just to finish the loan off (interest early termination charge etc) and was left with an empty garage and very little cash so got my mk2 8v and have felt chirpy ever since. Be careful m8 bright lights on shiny cars in showrooms aint all there cracked up to be.

[mono-stereo]

thanks for the advice mate, that must of stung! 

to be fair i dont want a new car, i would buy privatly second hand. i have my hart set on a mk 5 gti, the cheapest i have seen them goin on auto trader for is 14k. i dont do alot of mileage so a high mileage example would be ideal for me, although you dont seem to see any yet.  what ever happens im gonna have to get a loan, and my feeling is rather then get something 4 8 grand and end up selling it in a couple of years to get a gti anyway, i might as well just get one now.  however, as people have said its an awful lot of money and i dont want to make a mistake.

[RandomJord]

***Ahem, remembers FSA course*** Dude if your buying a MK5 u might aswell goin thru a dealer, an also i wouldnt go for a bank loan, youv got much more protection and rights with HP or PCP, such as voluntary terminanations half way through the term an that. J.staffords sort of right with the give it back thing but that WILL show if you want finance again, an if youd done 100K and your contract was for 12000 a year, theyl come after you for mileage charges. If you want the car an intent keepin it for a bit go HP. yep....rambling

[J.stafford16v]

J.staffords sort of right with the give it back thing but that WILL show if you want finance again

I have done this a couple of times and we have never had problems with getting finance, and it won't effect your credit rating as you have kept to the contact within your credit agreement. However the same finance company may not want you as a customer for a while, ah but there are plenty of the robbing b@stards waiting to be done over!!!!!