Car loan at age 22. How?

hardcorehobbit

Hi all,

I'm looking at buying a new car. I'd need about 3500£ for this.

My problem is where to get it. I am aware that car dealers interest rates are, shall we say, not the best, but I'm thinking it might be the only way.

Apparently, I could get a graduate loan from my bank (HSBC), but they only list interest rates for £7000 and above.

Most of the other providers, including most of those mentioned in the Cheap Loans article have age restrictions which prohibit me from getting the loan.

I'm currently on about £600-700 a month (part time hours which vary) but will hopefully be starting a new job soon which would lead to fewer outgoings, my major one being petrol currently.

I think I have a reasonable credit rating, have never had trouble paying anything off, and currently am circa £950 into a £1500 interest free overdraft, with a further £500 agreed at 20% APR.

Any advice?

Thanks in advance.
J

vaporate

This is purely my opinion, not professional advice...

Wouldn't it be best if you cleared the overdraft first?

£3500 is a doable saving target for you, even with part time hours.

Even if you did get a loan, you will pay alot of interest and you also need to pay car insurance, road tax, petrol, maintenance of the car, MOT blah blah blah.

SAVE UP.

it is your best interest, not mine.:beer:

Trust me, it does feel better to save and buy something with your money, unless its a mortgage.

vaporate

hardcorehobbit wrote: »

Hi all,

I'm looking at buying a new car. I'd need about 3500£ for this.

My problem is where to get it. I am aware that car dealers interest rates are, shall we say, not the best, but I'm thinking it might be the only way.

Apparently, I could get a graduate loan from my bank (HSBC), but they only list interest rates for £7000 and above.

Most of the other providers, including most of those mentioned in the Cheap Loans article have age restrictions which prohibit me from getting the loan.

I'm currently on about £600-700 a month (part time hours which vary) but will hopefully be starting a new job soon which would lead to fewer outgoings, my major one being petrol currently.

I think I have a reasonable credit rating, have never had trouble paying anything off, and currently am circa £950 into a £1500 interest free overdraft, with a further £500 agreed at 20% APR.

Any advice?

Thanks in advance.
J

I can not believe I missed this key point.

If you MUST borrow, then make use of your 1500 INTEREST FREE overdraft and save up the other half.

There is your answer (once you paid off your 950). Or else take note of my above post if you want to save.

p.s Please note, your overdraft can be called in and removed at any time. Usually if you pay no money in or always in the overdraft, despite it being interest free.

I take it you live at home with parents?

Also, put up a SOA. This may help posters to put up more detailed replies to help you more.

Hughesy84

If you have an existing car - keep it and then save.

If its desperate that you get another car, see if someone like Family could lend it you?

IWantToBeFree_2

If you are desparate for the car, how about looking at getting a credit card that allows a super balance transfer?

Virgin currently offer 0% on balance transfers for 16 months, you can transfer the balance to your current account for a 4% fee. If you can pay the loan off in 16 months, or at least the bulk of it, it is one of the cheapest ways to get the cash.

Welshwoofs

Why do you need to spend £3.5k on a new car? Last car I bought was a second hand estate with 70k on the clock - cost me £1,100 and it's still running after 2 years without a problem and no garage bills other than standard MOT and one service.

I've bought run-arounds for the dog even as low as £500 before now which have lasted a year with only a few minor parts needing changing...you don't need to spend £3.5k and I'd say that if you have to borrow the money, it'd be madness to do so.

hardcorehobbit

Welshwoofs wrote: »

Why do you need to spend £3.5k on a new car? Last car I bought was a second hand estate with 70k on the clock - cost me £1,100 and it's still running after 2 years without a problem and no garage bills other than standard MOT and one service.

I've bought run-arounds for the dog even as low as £500 before now which have lasted a year with only a few minor parts needing changing...you don't need to spend £3.5k and I'd say that if you have to borrow the money, it'd be madness to do so.

You're quite right. :T As are the above. I've come to my senses.

And I'm well versed in the subtleties and rules of bangernomics. I drive a £500 Astra with 33k on the clock.

Saving is the way forward, till I can afford something faster and more desirable. No need to put myself in more debt.