• collaborative post
OH and I are about to upgrade our car; it’s done us proud for the past five years, but has crazy-high miles (we inherited it from a salesman) and every time we take it on a long drive we’re slightly crossing our fingers that it doesn’t break down.
Not the best feeling when you’re travelling with two young children.
The wellbeing of the girls is our number one priority, so we’ve made the decision to spend more to get a model with a great safety record, and protective features. After years of travelling down to Devon with every square inch of the car crammed with luggage (I’m talking knees practically up around our ears) we’re also desperate to get the extra space a bigger car will offer.
This is my dream car, the Volvo XC90 Hybrid, but at a starting price of £60,000 it’s going to stay just that – a dream! At half the price, and a much more realistic option for us, is the Volvo XC60. This model is packed full of safety features, including adaptive cruising, built-in steel safety cages, a forward collision warning system, and lane-keeping and blindspot sensors. Amazing peace of mind when you’re travelling with a young family.
Getting into debt isn’t something we take lightly (I always remember someone telling me for every pound you get in debt it takes two to pay it back – one to pay back the original amount and another get yourself ahead) but the reality is we don’t have savings we can use to buy a car outright.
We’re considering several options, including taking out a low-interest car loan.
Something I’ve been looking into is peer-to-peer lending. If you’ve never heard of this before, it’s when private lenders are matched with credit-worthy borrowers, cutting out the middle man (and all his additional fees!) to offer low-cost, flexible loans. As well as getting a better deal, making regular payments will also enhance our credit rating – something that will come in handy when we ask (beg) for more money to carry out home renovations in a couple of years.
We’re also researching the benefits of leasing. You don’t own the vehicle, but can upgrade regularly without having to worry about depreciation, or locking yourself into a lengthy finance contract.
Each option has its pros and cons – which would you choose?