what to do?

black-saturn

OK, go ahead and get the loan. Why post on here if you didnt want advice?

budsowna

black-saturn wrote:

OK, go ahead and get the loan. Why post on here if you didnt want advice?

i'm only wondering if i'm missing something in my calculations and if i makes sense?, no need to be nasty!!!

YorkshireBoy

budsowna wrote:

i might be being daft (i'm sure someone will tell me!) but i really can't see much of a problem

i can afford the monthly payments over 6 years and if the worst comes and i need to sell the car, can i just pay a big chunk of the loan which will lessen the payments and everybody will be happy?

worst case scenario - get the loan = £21k (with interest), keep the car just one year (unlikely), sell it for £10k, pay off £8k of the loan leaving £2k for another car
minus 12 months of payments (£295 x 12 = £3540), leaving £9460 over 5 years = £157 a month
does this all make sense or am i being even more stupid than i thought i was in the first place? (probably!)

The £18K loan with PPI (or are you gambling without it?) will be £24K to settle £8K of debt and blow £13K on a car (less your £3K car trade-in).

Perm any 1 from 10 life events after 1 year, and if you have to sell the car you'll be lucky to get £8K.

Factor in your settlement figure for the loan, and you'll end up with a new loan for £14.5K and NO CAR!!!

Compare that situation to where you are now - £8K debt and a £3K car - ie a net £5K debt position.

Your plan *could* cost you £9.5K for one years ownership of a new car. Is that a gamble you'd be happy to take?

Didn't the debt-free wannabe board posts make you think a little?

mountainofdebt

Can I just ask what went wrong with your car? What has gone wrong with it in say the last year and how much has it cost you to repair?

The only reason I ask is that you seem to think that having a new car will suddenly make you the proud owner of a reliable car. What it will make you is the owner of a car that the moment you have driven it off the forecourt that has depreciated in value and doesn't come with a cast iron guarantee that it will be relaible.

Life has a funny way of throwing you in the s**t when you least expect it.

YorkshireBoy

YorkshireBoy wrote:

Perm any 1 from 10 life events

mountainofdebt wrote:

Life has a funny way of throwing you in the s**t when you least expect it.

You put it so much more eloquently than I could have. :rotfl:

Robert_Sterling_3

As I see it you are £8,000 in debt and are asking "Should I go further into debt?"
My answer is no not if you can avoid it. If you can't avoid it then I would suggest you keep the additional debt as low as possible.

budsowna

mountainofdebt wrote:

Can I just ask what went wrong with your car? What has gone wrong with it in say the last year and how much has it cost you to repair?

The only reason I ask is that you seem to think that having a new car will suddenly make you the proud owner of a reliable car. What it will make you is the owner of a car that the moment you have driven it off the forecourt that has depreciated in value and doesn't come with a cast iron guarantee that it will be relaible.

Life has a funny way of throwing you in the s**t when you least expect it.

my car's cambelt snapped while i was doing motorway speeds, caused a lot of engine damage, which is why it's costing a lot to repair.

the kind of car i'm looking at has had really good reviews and is well known for being ultra reliable (top gear recommend and my mechanic mate hate's them because he never makes money out of them!) piece of mind means a lot to me and cars are my only vice

i've worked out a budget and what i can afford a month and it doesn't look too bad to me but that's why i posted on here in the first place, to see if i'm missing anything, i don't want to make any mistakes

mountainofdebt

But you still haven't said what else has gone wrong with the car, to make you want to get rid of it.

Ok so the cambelt went and is going to cost you £800 to repair. But apart from that has it been reliable?

Another thing which seems to have been forgotten is that you might NOT actually get the loan. What would you do then?? Even if you did get the loan it might be at a higher rate than if you waited a while and paid off your other loans.

I worry when you say cars are your only vice....it only needs one for it to totally ruin your life.....ask anyone who has 'only' one vice. You mention that if the worst come to the worst you could sell the car....but what would you do then?

budsowna

mountainofdebt wrote:

But you still haven't said what else has gone wrong with the car, to make you want to get rid of it.

Ok so the cambelt went and is going to cost you £800 to repair. But apart from that has it been reliable?

NOPE!

in the last 6 months of ownership it's cost me about £1200 just to keep it going and it's not that much of a special car (peugeot 306) i just seem to be throwing money at it all the time!

southernscouser

From someone who has bought 2 brand new cars I can see the appeal in a brand new car but then I'm £38k in debt!

My advice is don't do it! OK so you have worked out how much it will cost you loan wise but have you thought about the other expenses?

You'll probably will go for a bigger sized engine (I did) which means more petrol, possibly higher road tax, higher insurance premiums. As you'll be so chuffed with you new set of wheels chances are you will want to show off in it more (more petrol). If you buy brand new then to keep your warranty in tact you will have to service it annually with that company which is always more than advertised, ie oil, spark plugs and overpriced anyway! You'll also spend a fortune taking it through car washes and all the like!

As soon as the keys are handed over to you you've lost a couple of thousand pounds already!

If you weren't in debt I'd say go for it but in your case I definately would say no. I'm talking from experience. I'm learning the hard way and although I don't know you I'd hate for you to go down the same slippery path I have.