Should I buy a car on finance?

NOO

1) YOUR GETING INTO DEBT

2) WITH £5000 YOU WILL BUY A CAR NEARLY 3 YEAR OLD AS SOON AS IT REACHES 3 YEAR OLD THE MANUAFCURE WARENTEE FINISHES - THE VALUE OF THE CAR DROPS - PROBLEMS START TO ARRISE - YOUR PAYING EVERY MONTH FOR A CAR THAT YOU WISH YOU NEVER GOT

3) YOU CANT SELL THE CAR OR NOTHING WHILE YOUR PAYING THE DEBT UP SO YOUR STUCK WITH IT THEN ONCE YOU PAID UP FOR IT YOUR CAR IS PROB WORTH £2000 - £2500 MAX

SAVE UP AND BUY OUT STRAIGHT BEST OPTION + MANY CAR DEALERS JUST GET AUCTION CRAP AND WAX THEM UP AND PAINT THE TYRES X CAR RENTALS ETC

You will obviously end up paying more in the long run because of interest. You should learn to save money at some point especially if you want a car. What would happen if you put it through its mot and it fails and its a couple of hundred pounds to put right? Or you're in an accident and have to pay the excess? You need a bit of money to one side in case these things happen. And what about the future, you should probably be saving money as you never know what could happen, e.g. losing your job, or what about a deposit for a house (if you don't already own one).

Maybe a good option is to save some money towards a car and cover the rest with a loan? That's what I did because I did not want to use all of my savings in case something came up. So by taking out a loan for a percentage of the cost is obviously keeping the repayment costs down.

But at the end of the day, if you never save money because you blow it on "something for yourself" and end up taking out finance and loans here and there for the big things you need because you have no savings, pretty soon all your income will be going towards paying off your debts, and you'll have no disposable income for the things you want. It's not a good habit to get into.

Here' s the best of both worlds: Save up for a down payment. Between $2000 and $5000 is good. If you have a cash down payment, the dealer will probably knock the price down of your vehicle a bit, or give you a lower interest rate (which means lower monthly payments).

Also, look for national deals that are going on. I know that Dodge is currently having a 0% APR (for "qualified buyers"...but with this incentive, even if you're not "qualified," you can still haggle over some insanely low interest rate), however, I don't know when this incentive will end. (I SO want either a Challenger, Charger, or, more realistically, an Avenger).

So shop around, and I'm sure you'll find an excellent deal if you have a down payment ready. Another tip? Go for 2010 models. Dealers will be trying to get rid of them to make room for their 2011 inventory, so you'll probably even get more savings.

Good luck!

Oh, and here's a tip for saving money: make a budget for yourself, and plan to spend a little on yourself every month, that way you don't go crazy not being able to get anything, but are still saving up money.

For example: Let's say you earn $3000 a month, and you know that rent, utilities, and bills will take up $1500 a month. That leaves you with $1500. Budget $200 for gas, $200 for groceries, and that leaves you with $900 a month. Now, you'll want to immediately put.... oh, let's say $700 into a savings account so you don't touch it, then you'd have $200 to spend every month on yourself (for dates, movies, eating out, and buying gadgets and stuff).

Within 5 months you'd save $3,500 which is a fair down payment :)

Another tip? Take that $200 out into cash, and when you're wallet is empty, then you can't spend anymore. Also, it's been scientifically proven that people will spend less when they pay with cash, because they can "see" the money leaving their hands, and see how much they have left.

Try your bank it may be better rate from them rather than a finance company.

responsibility vs paying a bit extra hmmm

if you cant save then you really dont have any other option do you.

not it you can help it.