Best loan for an 18 year old?

Swirlywurly

Please listen to the advice people are giving you! Don't take a loan save up the money instead. Have some willpower. You've survived this long without a car, you will regret the amount of debt you are in if you do this.

Bananasplit

Please listen to the advice that everyone else has given you. Everyone has said the same. DON'T DO IT.

To put it into perspective, I went into the bank yesterday to talk about getting an £8500 loan for a new car. The interest rate I was offered (I didn't apply folks just spoke about numbers.) was 24% APR over 5 years. On £8500 I would have paid back a total of £14500:eek:. I walked out. I figured a car on finance (a more expensive one btw) was better for me. I would pay back less than this. Oh and I'm only 5 years older than you.

Can I ask what the interest rate you've been offered is?

will369

Bananasplit wrote: »

Please listen to the advice that everyone else has given you. Everyone has said the same. DON'T DO IT.

To put it into perspective, I went into the bank yesterday to talk about getting an £8500 loan for a new car. The interest rate I was offered (I didn't apply folks just spoke about numbers.) was 24% APR over 5 years. On £8500 I would have paid back a total of £14500:eek:. I walked out. I figured a car on finance (a more expensive one btw) was better for me. I would pay back less than this. Oh and I'm only 5 years older than you.

Can I ask what the interest rate you've been offered is?

Its is 15%


Will

Bananasplit

That's not too bad. But as others have said. If you are paying back this loan over 5 years, the chances are you will not have the car by the time you have finished paying it. So you'll be paying for a car you don't own anymore, nevermind the insurance. Is this what you really want?

Burlesque_Babe

15% makes it an even more poor decision. Think of all the interest you will incur - google a loan calculator to see how much you will pay over 5 years.

will369

As I have said before

I might be able to pay some back as a big sum

like £500 in one go

etc

Burlesque_Babe

the word there is 'might'. You'll still have the remaining balance plus the interest on top.

Please don't do it. I know you probably think you are making a good decision, but you really aren't - just for the sake of saving for a few months, it isn't worth it.

will369

Anyway


As I have just started my job wont the bank decline my offer as there aint much on my statement?

They approved it when I applied online... but they can still decline?

Burlesque_Babe

was it approved in principle?

will369

Burlesque_Babe wrote: »

was it approved in principle?

What you mean?

It was approved online

But dont they now have to have a look at my bank statement?