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  • FIRST POST
    • Missl2019
    • By Missl2019 6th Jan 18, 9:01 AM
    • 2Posts
    • 0Thanks
    Missl2019
    Stuck don't no what to do .....
    • #1
    • 6th Jan 18, 9:01 AM
    Stuck don't no what to do ..... 6th Jan 18 at 9:01 AM
    Hello urgently need some advice. I have 12 yr old car but. I really want to change it now i brought it for cash in 2014 proberly was a bad idea thinking back now. Well i have applied for car finance my credit rating is not great the apr is higher than norm.and i have been quoted 35% on a 7000 car which means over 5yrs i will be paying back 14k at 230 max a month

    Would you recommend this as i have no other options at present and i was told it would build my credit rating up once i keep paying etc i have a bit of savings but not enough to cover the cost of the car

    Pleaase can anyone respond to this asap Thank you
Page 1
    • binaryuniverse
    • By binaryuniverse 6th Jan 18, 9:27 AM
    • 535 Posts
    • 306 Thanks
    binaryuniverse
    • #2
    • 6th Jan 18, 9:27 AM
    • #2
    • 6th Jan 18, 9:27 AM
    From an affordability point of view, if you can't afford it then don't buy it. There's absolutely no way I'd take up 35% APR over 5 years. As you have noted, you'll be paying back twice the price of the car. Does that seem worth it to you? Would you be setting yourself up for money issues, down the line?

    If you need to change your car then I'd suggest getting a cheap 2nd/3rd hand car that will do the job whilst you build up/improve your credit history. After a year or two, have another look what finance deals you can get.
    • zx81
    • By zx81 6th Jan 18, 9:36 AM
    • 14,933 Posts
    • 15,782 Thanks
    zx81
    • #3
    • 6th Jan 18, 9:36 AM
    • #3
    • 6th Jan 18, 9:36 AM
    Use your savings to buy a cheap car.

    Then put the money you would have spent on the loan away each month for any repairs needed . By the end of the year, you'll have built up a tidy sum of over £2,700.
    • DCFC79
    • By DCFC79 6th Jan 18, 9:54 AM
    • 30,639 Posts
    • 19,368 Thanks
    DCFC79
    • #4
    • 6th Jan 18, 9:54 AM
    • #4
    • 6th Jan 18, 9:54 AM
    Whats wrong with the car ?

    Can you not save up whilst using the car amd once you have enough you buy a ued car.

    It might be the fact your asking for £7k as the minimum for loans to get the best rate is £7.5k, maybe try asking for £7.5k and see what rate is offered.
    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.
    • stevenhp1987
    • By stevenhp1987 6th Jan 18, 11:48 AM
    • 476 Posts
    • 425 Thanks
    stevenhp1987
    • #5
    • 6th Jan 18, 11:48 AM
    • #5
    • 6th Jan 18, 11:48 AM
    Why do you need to spend £7k on a car?

    If the car is still run-able (sounds like it is?) then keep using it and save up for an affordable car.

    How is your credit history. It will be worth, if you've not already done so, signing up to MSE Credit Club, ClearScore & Noddle. Then, if you really have your heart set on an expensive car, you can see what kind of loans you'll be able to get.

    35% APR is sub-prime, so I guess you have a poor credit history? In this case, best keep driving your current car and keep saving money.
    • YorkshireBoy
    • By YorkshireBoy 6th Jan 18, 12:17 PM
    • 29,693 Posts
    • 17,647 Thanks
    YorkshireBoy
    • #6
    • 6th Jan 18, 12:17 PM
    • #6
    • 6th Jan 18, 12:17 PM
    ...i have been quoted 35% on a 7000 car which means over 5yrs i will be paying back 14k at 230 max a month

    ...i have a bit of savings but not enough to cover the cost of the car
    Originally posted by Missl2019
    On those numbers it looks like you have £500 savings, because www.whatsthecost.com throws up this, which closest matches your numbers...
    The bottom line, is that this loan for £6,500.00, over 60 months, will cost you £230.69 a month.

    In taking out this loan, you'll pay a total of £7,341.22 in interest. The true cost of this loan is £13,841.22
    So in answer to your question...
    Would you recommend this
    ...my answer would be if all you have in the world is £500, then using this and borrowing £6.5K to spend £7K on a car would not be financially sensible. If you were to lose your job you're just 1 month away from disaster!
    • Dobbibill
    • By Dobbibill 6th Jan 18, 12:30 PM
    • 2,654 Posts
    • 3,750 Thanks
    Dobbibill
    • #7
    • 6th Jan 18, 12:30 PM
    • #7
    • 6th Jan 18, 12:30 PM
    This is not a good idea.

    A good idea would be to save for the car.

    How much savings do you have towards a car?

    Go for an older/cheaper car using your savings.
    5 yrs is an awful long time to take out finance on a vehicle especially when they depreciate so quickly.
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    • Tarambor
    • By Tarambor 6th Jan 18, 3:47 PM
    • 1,959 Posts
    • 1,395 Thanks
    Tarambor
    • #8
    • 6th Jan 18, 3:47 PM
    • #8
    • 6th Jan 18, 3:47 PM
    i have been quoted 35% on a 7000 car which means over 5yrs i will be paying back 14k at 230 max a month

    Would you recommend this as i have no other options at present
    Originally posted by Missl2019
    No, not in a million years. Run the one you've got, put the £230 a month you would've been repaying on the car loan in a savings account and in a year or two use it to buy another car.
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