Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • ashlear3
    • By ashlear3 30th Nov 17, 3:01 PM
    • 4Posts
    • 0Thanks
    ashlear3
    Loan advice!
    • #1
    • 30th Nov 17, 3:01 PM
    Loan advice! 30th Nov 17 at 3:01 PM
    Hi everyone,

    So I'm looking for some help with getting a loan...

    I'm 20 years old and looking for a £10k loan to purchase a new car and I want a budget of no more than £180 per month.

    I've applied for quite a few and been accepted but with a revised interest rate in which I then don't got through with it because it shoots up the monthly repayments. I don't want to continue applying because I know this will kill my credit file but getting a loan is cheaper and more reasonable for me as opposed to doing a finance option with a dealer.

    Would really appreciate any advice???

    Thank you!
Page 1
    • HappyLassie13
    • By HappyLassie13 30th Nov 17, 3:04 PM
    • 25 Posts
    • 60 Thanks
    HappyLassie13
    • #2
    • 30th Nov 17, 3:04 PM
    • #2
    • 30th Nov 17, 3:04 PM
    Do you really need to spend 10K on a car?

    Is there not a cheaper alternative for you rather than getting yourself into that much debt at a young age?

    Not trying to be rude, so please don't take it that way.
    • ashlear3
    • By ashlear3 30th Nov 17, 3:08 PM
    • 4 Posts
    • 0 Thanks
    ashlear3
    • #3
    • 30th Nov 17, 3:08 PM
    • #3
    • 30th Nov 17, 3:08 PM
    I suppose I don't need to but I think to myself that these are the sort of things is the reason I work hard!

    I've had my sights set on a new car for a while and just looking for some advise!
    • AndyBSG
    • By AndyBSG 30th Nov 17, 3:16 PM
    • 937 Posts
    • 1,143 Thanks
    AndyBSG
    • #4
    • 30th Nov 17, 3:16 PM
    • #4
    • 30th Nov 17, 3:16 PM
    Obvious advice would be don't do it...

    I did the same when I was younger and looking back now it was the biggest waste of money I ever made.

    Had the car little over a year, it got written off in a supermarket car park accident while I wasn't even in the car and I was offered a fraction of what I paid for it.

    Save money and buy a decent car outright for half that price while putting the other 5k and the money saved in interest and insurance payments away for something else.

    Cars are nothing but a way to fritter money away.
    • Arleen
    • By Arleen 30th Nov 17, 3:16 PM
    • 1,037 Posts
    • 761 Thanks
    Arleen
    • #5
    • 30th Nov 17, 3:16 PM
    • #5
    • 30th Nov 17, 3:16 PM
    The things you work hard for are the things you save up for, not bought on credit. So if you really want 10k car, save every penny you can, don't go out, don't eat out, and in some months you can buy this dream car of yours for cash. That is if, when having 10k gbp in your bank account, and seeing all the sacrifice it did cost you will still want it instead of something used for 2-3k.
    • ashlear3
    • By ashlear3 30th Nov 17, 3:27 PM
    • 4 Posts
    • 0 Thanks
    ashlear3
    • #6
    • 30th Nov 17, 3:27 PM
    • #6
    • 30th Nov 17, 3:27 PM
    Thank you for all the advise so far! I'm just trying to think of the cost in the long run... It's hard to know what would be more worth it...

    Interest on a loan can be so variable but then again so can the interest on car finance and then there's also the deposit and insurance etc.

    Ideally I don't want to dip into my savings :/
    • Tarambor
    • By Tarambor 30th Nov 17, 3:39 PM
    • 1,751 Posts
    • 1,201 Thanks
    Tarambor
    • #7
    • 30th Nov 17, 3:39 PM
    • #7
    • 30th Nov 17, 3:39 PM
    New as in brand new or new as in fairly new? Personally I'd look at 2 years old at the newest. If you are considering buying brand new check out the price of a 2 year old one of that car and you'll see why.

    Ideally I don't want to dip into my savings :/
    If the interest on the loan is more than the interest on your savings then you're better using your savings (still leaving an emergency fund) as you'll be better off, rebuilding them with what you would have paid in monthly payments on a loan.
    Last edited by Tarambor; 30-11-2017 at 3:42 PM.
    • ViolaLass
    • By ViolaLass 30th Nov 17, 4:00 PM
    • 5,149 Posts
    • 7,146 Thanks
    ViolaLass
    • #8
    • 30th Nov 17, 4:00 PM
    • #8
    • 30th Nov 17, 4:00 PM
    Why don't you want to use your savings?
    • ashlear3
    • By ashlear3 30th Nov 17, 4:01 PM
    • 4 Posts
    • 0 Thanks
    ashlear3
    • #9
    • 30th Nov 17, 4:01 PM
    • #9
    • 30th Nov 17, 4:01 PM
    Thank you all so much for your advice!
    • DCFC79
    • By DCFC79 30th Nov 17, 8:36 PM
    • 30,411 Posts
    • 19,227 Thanks
    DCFC79
    You can save money by going nearly new, would mean less amount would be needed so maybe a less monthly payment.
    Last edited by DCFC79; 30-11-2017 at 8:47 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • camelot1971
    • By camelot1971 30th Nov 17, 8:51 PM
    • 551 Posts
    • 861 Thanks
    camelot1971
    At 20 years old, be thankful you were even accepted for the credit product, even with the revised interest rate.

    Believe it or not, premier interest rates need to be earned, they are not an entitlement. You need to take what you are given, or you will end up with nothing at all.

    If you keep filling out applications, you'll end up being declined with everyone for looking desperate on your credit file's credit application search record.

    From a senior to a 20 year old minor... live within your means and earn your way to a low interest deal and start from the bottom.. you are subprime status and need to get used it.
    Originally posted by LisaSP
    Are you seriously giving financial advice when you posted you borrowed £1200 from a loan shark and didn't know the APR?? Hmmm, where is that Troll spray?
    • Candyapple
    • By Candyapple 1st Dec 17, 11:02 AM
    • 2,495 Posts
    • 1,862 Thanks
    Candyapple
    Please read this!
    http://forums.moneysavingexpert.com/showthread.php?t=5746050
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,478Posts Today

7,225Users online

Martin's Twitter