Loan spiral - young and naive!

moonrakerz

scho wrote: »

Looks like even the old and wise still have lots to learn clapton:

-Insurance for any new young drivers is usually around £1500-2500 for the most basic 1.1 shopping car.

The OP still needs at least 3K to get herself on the road.

'Fraid Clapton's "oldness & wiseness" has left you trailing far behind ! His comment about "being entitled to money you haven't earned yet" is the crux of the matter.

Your comment about insurance is wide of the mark.
Why does a 19 year old require a £5000 car, other than purely for status ?
Any one with a modicum of common sense would buy an old banger for a few hundred quid.
a. it's what can be afforded
b. it only needs 3rd party, f & t insurance
c. it will gain ncd
d. Most important - it keeps you out of debt


The OP DOES NOT need £3000 to get herself "on the road".

Final question: Does she actually NEED a car ?

RobertoMoir

moonrakerz wrote: »

'Fraid Clapton's "oldness & wiseness" has left you trailing far behind ! His comment about "being entitled to money you haven't earned yet" is the crux of the matter.

It's correct as it goes but it's missing the point. The OP didn't ask why no bank would give her the money she "deserves", she identified for herself some of the mistakes she's made and then asked what her choices were now she's been turned down for a loan. What exactly did she say to deserve the replies she's got from some people?

I can't believe the tone of some of these replies to what is actually a reasonable question. And to think I thought *I* was the one who was a bit too blunt at times.

CLAPTON

RobertoMoir wrote: »

It's correct as it goes but it's missing the point. The OP didn't ask why no bank would give her the money she "deserves", she identified for herself some of the mistakes she's made and then asked what her choices were now she's been turned down for a loan. What exactly did she say to deserve the replies she's got from some people?

I can't believe the tone of some of these replies to what is actually a reasonable question. And to think I thought *I* was the one who was a bit too blunt at times.

I agree that we could perhaps all modify our tone on occasions.

However, the issue of borrowing 5k at such a young age is a serious one.
You only need to read the debt free wannabe board or this board for a while to see the mess people get into very often starting with 'needing' a car.
One car leads to another, so a new loan is taken out before the old one is paid off so a spiral of debt is started and its easy to end up to 10k worth of debt on a car worth a couple of grand.

Better to buy at the cheap end, pay insurance monthly (even if there is a surcharge) and live within one's means.

A young person living at home should take the opportunity to save and not to get into debt.

And for the record I'm not particular old and certainly not wise.

RobertoMoir

Clapton,
I absolutely agree that it's a risky choice and agree with the idea of pointing the OP towards using their money better and avoiding the traps. I just believe you catch more flies with honey than you do with vinegar, y'know? (and your post wasn't one of the ones that concerned me, by the way)

Bananasplit

scho wrote: »

-Insurance for any new young drivers is usually around £1500-2500 for the most basic 1.1 shopping car.

I got my first car at 19. A brand new 1.2 Fiat Punto. Insurance was £1200 for full comp.

I would agree with others though, maybe a cheaper car and monthly insurance payments.
Save up and in a few years not only will you be able to buy a car outright, but insurance will be a hell of a lot cheaper.

3 years on my insurance was £500 still at full comp!

moonrakerz

RobertoMoir wrote: »

The OP didn't ask What exactly did she say to deserve the replies she's got from some people?
I can't believe the tone of some of these replies to what is actually a reasonable question. And to think I thought *I* was the one who was a bit too blunt at times.

As you have quoted my response, could I point out that my post was not addressed to the OP but rather to one of the responses - so in this case, sorry, but it is you who is missing the point

Clairestar13

Bananasplit wrote: »

I got my first car at 19. A brand new 1.2 Fiat Punto. Insurance was £1200 for full comp.

I would agree with others though, maybe a cheaper car and monthly insurance payments.
Save up and in a few years not only will you be able to buy a car outright, but insurance will be a hell of a lot cheaper.

3 years on my insurance was £500 still at full comp!

I've just sold my 1.2 punto!!

I just wanted a nice car to drive around and have fun with before i have to think about getting a family car or anything more "practical". Yes I understand I can get nice cars between 1-2k but i actually wanted something to be proud of.

mrcow

What makes you think that buying something you can't afford is something to be "proud of"

Clairestar13

RobertoMoir wrote: »

It's correct as it goes but it's missing the point. The OP didn't ask why no bank would give her the money she "deserves", she identified for herself some of the mistakes she's made and then asked what her choices were now she's been turned down for a loan. What exactly did she say to deserve the replies she's got from some people?

I can't believe the tone of some of these replies to what is actually a reasonable question. And to think I thought *I* was the one who was a bit too blunt at times.

I agree, I feel like half of these replies aren't actually advice at all, they're just expressing their opinions and telling me what i should have done in hindsight... well thats not much good now!

Clairestar13

mrcow wrote: »

What makes you think that buying something you can't afford is something to be "proud of"

The issue wasn't that i couldn't afford it. I could afford the monthly repayments, plus more if necessary, its just i dont have the money right now to buy the car, which is why i applied for the loan originally.