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What to do financial wise with bike/car


Takanta
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I cant decide what to do :)


I currently have no bike due to selling it to my dad . And with that money i put a deposit down on my car.


I currently have roughly 3.2k worth of car to pay off , that's without interest added.


Im desperate for another bike though as Its just boring as fk driving.


So should I save up and pay off car, then buy a bike on finance. OR


Save up and buy a bike and continue paying off car thro finance over the 3 years. OR


Pay car off , sell car , buy a bike and a cheap banger of a car.


Dont know whether to wait till october when my restriction is up either .



Opinions please :D

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Pay car off , sell car , buy a bike and a cheap banger of a car.

Sounds the best option to me if you can afford it!

Get a bike and restrict it, you are not going to want to buy a bike now and another once your restriction is off, but the better weather is starting, you are not going to want to e stuck in a car either!

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Pay car off , sell car , buy a bike and a cheap banger of a car.

Sounds the best option to me if you can afford it!

Get a bike and restrict it, you are not going to want to buy a bike now and another once your restriction is off, but the better weather is starting, you are not going to want to e stuck in a car either!

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How much is the car worth? Could you get a dealer to buy the car back and pay off the finance that way? Then get a new bike on finance and a cheap car to run around in. Thats what i'd do.. 8-)

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cheap small economical car and a nice bike for summer is ideal as you get a little older,Rain gets wetter,winds are stronger and cold is much colder after your 40 !

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3.2k is a bit steep, you can get 5 year old Ford Fiestas for £2.5k or so with less than 60k on the clock :?


Id get saving up, pay off the car and then dont sell it as the money you put into a car keeping it going you never get back so you may as well stick with it now. Then save up some more and either buy a 600 project bike you can work on and get going on the cheap or buy a decent one but that takes a bit longer in saving.

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  • 3 weeks later...

haha it was an impulse buy :D,



may have came up with a solution , the maw has a few k sitting doing nothing and shes wanting an automatic car. so she did offer to pay off my car , basically buy it off me , then she trades it in for an auto.


or she pays off car , I sell car , give her money back , Kinda like a loan haha

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My advice:


1) get rid of car, get yourself out of all that finance. Get yourself back in the black.


2) NEVER EVER EVER EVER BUY ANYTHING ON FINANCE!!!!!!! It's dead money and a fool's game.


3) Buy a bike, or bike and car if you can afford both.

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Even if its 0% finance as many places now do (by that I mean Honda) xD

 

There's no such thing as a free lunch. 0% finance invariably means you have to pay more, later. Rarely (if ever) do companies give things like that away for free.

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My advice:


1) get rid of car, get yourself out of all that finance. Get yourself back in the black.


2) NEVER EVER EVER EVER BUY ANYTHING ON FINANCE!!!!!!! It's dead money and a fool's game.


3) Buy a bike, or bike and car if you can afford both.

 

What about a mortgage? Is that a fools game?


It's relatively easy to get a decent rate on finance, my girlfriend bought a 10k astra, she went to the bank after hearing the dealerships initial offer, took back all the interest details and such the bank could offer her and the dealership drastically dropped their initial offer to beat the bank and she ended up paying by finance.


I do have a savings account and put some aside each month, I wouldn't consider myself bad with money. Let me put forward two scenarios.


Guy A & Guy B;


Both have 12,000 in savings.


Guy A goes and blows the lot on a brand new R1.


Guy B works out he can comfortably spare £150 a month so he goes to the dealership and gets the exact same bike on finance.. Knowing he's gunna pay 1500 more, but he still has all his savings.


Now say they both have a work related accident and are on statuary sick pay for 6 months.


Guy A would be knackered. Within a few months he would probably have to sell his bike for much less than he paid for it.


Guy B would have 12 grand to cover his finance payments and cost of living untill he could go back to work..


I have a savings account on my own with just over 2k in, I have a joint savings account with my misses with 1,900 in that we started in November last year to save for a mortgage. I also have an account set up that's about £300 in it for my 7 month old son when he turns 21.


I would rather work out a monthly figure I can afford and get a bike that way than to blow all that on one and have nothing to fall back on. I dipped into my own personal savings for my current bike, because I bought it in august for £675 (I think) and just wanted a winter hack that I wouldn't be bothered about if I threw it down the road, fortunately mechanically it's a gem, aesthetically it's a turd, I'm hoping it will see me through to next February without me putting too much money into it when I get another years no claims and my insurance on the next bike I'm after drops by £400 to £350.


Also if you spend your life saving up for things and never getting any credit wouldn't you have a nasty surprise when you came to get a mortgage and got refused?

I mean my credit file has no mention of my account balance or savings, all I can see over the past 6 years is mobile phone contracts, two loans I have had and cleared and my credit card info. Banks want proof your a good borrowerer before they will happily let you walk off with a couple of hundred thousand of their money.

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Even if its 0% finance as many places now do (by that I mean Honda) xD

 

There's no such thing as a free lunch. 0% finance invariably means you have to pay more, later. Rarely (if ever) do companies give things like that away for free.

 

How do you work that one out ?

0% finance with the likes of Honda means exactly that.

No extras, no additional value added to the cost of the bike, nothing.


I agree on the principle of buying on credit though, as it is something I would never do since I was stung buying a Sega Mega Drive that should have been about £100, and ended up costing me three times that.

My house has a mortgage, but other than that no other credit for me.

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Also if you spend your life saving up for things and never getting any credit wouldn't you have a nasty surprise when you came to get a mortgage and got refused?

I mean my credit file has no mention of my account balance or savings, all I can see over the past 6 years is mobile phone contracts, two loans I have had and cleared and my credit card info. Banks want proof your a good borrowerer before they will happily let you walk off with a couple of hundred thousand of their money.

If you get a loan and clear it you're OK but if you have outstanding finance when you apply for a mortgage it affects your mortgagability so time it carefully.


I bought my car outright couple of years ago since the Mrs and I were hoping to get a house and a mortgage within 6-12 months and didn't want any outstanding loans or finance on our records when we applied. (Mrs was a mortgage adviser in a previous life so I'm taking her word for it on this)

Admittedly that plan has since flown out the window but still...

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It's an arse about he whole credit history thing though.


Because I don't use my overdraft, rarely use my credit card & always pay the balance off in full, don't have any household bills in my name (they don't seem to count insurance or mobile accounts) my credit history is cr*p!!

My bank reduced my overdraft & credit card limits to pathetically low amounts and they're not even worth having really! :roll:

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It's an arse about he whole credit history thing though.


Because I don't use my overdraft, rarely use my credit card & always pay the balance off in full, don't have any household bills in my name (they don't seem to count insurance or mobile accounts) my credit history is cr*p!!

My bank reduced my overdraft & credit card limits to pathetically low amounts and they're not even worth having really! :roll:

 

I don't agree with the way it works. Being good with money shouldn't mean you have to borrow, they should class people with the ability to save up and buy things better than someone who has credit up to the eyeballs as IMO it takes a lot more self restraint. I do stand by the rather take finance and have some money to fall back on, but finance can be a very bad thing for people who are crap with money.

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0% finance invairably means you pay more for whatever you're buying in the first place. Afterall no such thing as a free lunch. An example being when we bought our sofas the discounted price advertised in the window was further discounted when we said we'd buy it outright rather than use their finance deal.


I'd never buy anything on a finance deal from a dealership, instead I always shop around for the best available loan, usually via moneysavings expert website. Nothing wrong with keeping a bit aside for a rainy day, but then again I spent all my savings on my bike rather than get a loan as I've got my hubby's earnings to fall back on if need be. We all manage our money differentley, horses for courses.

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