saving up vs financing for new (2ndhand!) truck

[arbmark]

anyone got a magic formula for looking at this!?!?!?! its getting towards new vehicle time and would appreciate any advice. is it worth getting a last couple of years out of the old girl whilst saving up? (her body's not what it was)

cheers

mark

[simonm]

Me personally would save up unless you were really in a bind and needed a truck asap. its ok keeping up with repayments while the goings good, but what if something happens that extra outgoing a month could get you in the shizzle. Its too easy to borrow money! save up you will get there in the end.

[muttley9050]

Imo finance is nasty on s/h vehicles. Always best to save if you can, if I was you I would price up how much extra the finance ends up costing, then compare this to an estimate if how much your old truck is likely to cost you over the saving period. Not including things like insurance or tax etc coz new truck would need these. The cheaper price is the cheapest option. But don't forget that over those 2 years a newer truck may still need some repairs.

I hate owing money so try to avoid it, I also hate the interest you have to pay.

How bad is your old truck really?

[Hodge]

Financing is great if you have money coming in regularly but its a nightmare when things get tough. I would never get anything on finance again. Now that I don't I feel like its a weight off my shoulders.

 

 

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[s o c]

i dont mind finance on something reliable and fit for purpose. if i need it, i need it now not next year. better a planned repayment than an unexpected breakdown and repair bill.

if the interest makes the difference between a vehicle being viable or not then its not worth buying it at all.

[testcricket01]

Sounds like your thinking about this to late, we plan our vehicles its got to last 4/5 yrs then chop it in for another new one in which time you save up from the moment you get the new one for the replacement in 5yrs or just finance it.

[arbmark]

thanks guys lots of wise words in there. yes I am probably a bit late. I expect that what money I can save up over the next couple of years wont go that far towards a new truck anyway. Its probably worth chucking the new truck in (bodywork issues, but I should get a grand for it).

I seems harmless to pay 10% say more for a vehicle over say 4 years - probably save 10% of hassle/downtime etc????? As long as I don't go silly with it....

[Ian C]

i dont mind finance on something reliable and fit for purpose. if i need it, i need it now not next year. better a planned repayment than an unexpected breakdown and repair bill.

if the interest makes the difference between a vehicle being viable or not then its not worth buying it at all.

 

I agree, I don't mind finance aslong as it fits your business model , I have finance on kit and it pays for its self on being reliable and ready too go every day.

[Hawthorn]

I seems harmless to pay 10% say more for a vehicle over say 4 years - probably save 10% of hassle/downtime etc????? As long as I don't go silly with it....

 

Be careful when you're thinking about interest. The compound effect increases your payback amount massively.

eg, to pay 10% overall interest over a 4 yr term interest rate needs to be no more than about 4.5%

 

Whether to save and buy cash or use finance is purely due to your own circumstances and happiness with exposure to risk.

 

I'd suggest save as much as you can for as long as you can (sensible) keep existing truck. Borrowing 50% is way better than 100% ;-)

[arbmark]

Be careful when you're thinking about interest. The compound effect increases your payback amount massively.

eg, to pay 10% overall interest over a 4 yr term interest rate needs to be no more than about 4.5%

 

Whether to save and buy cash or use finance is purely due to your own circumstances and happiness with exposure to risk.

 

I'd suggest save as much as you can for as long as you can (sensible) keep existing truck. Borrowing 50% is way better than 100% ;-)

 

yes I have a finance agreement on the chipper which is a little over 4%. good advice. I just don't want to have to scrap the vehicle as it has some value left in it. I think after the recent works I will get at least 6 months out of it before selling it on if I can.