Sensible Financing

incensicle

The OP wants something he can't afford. This is why he needs to borrow money to get it. Although he does seem to be saying he has some savings in an Isa. If so then use that, with interest rates the way they are its probably not doing much in there anyway.

It really is best to save up. during that time you can ask yourself again do I really want it, need it, what other options are there, nearly new for example. Don't worry about missing a deal there are always deals to be done with people who have money to spend!
Theres nothing wrong with wanting a nice car btw. Just save up!

drew2k9

no im not waiting to hear what i want to hear, i am going to get the car regardless, but there are a number of avenues open to me, i was wondering was this a sensible one in my circumstances.

i cant rely on my car being sold before 31st march, so i will have the money from it, just not now, and i know that i could put it into my bank towards getting back up to the positive numbers in an overdraft, but some loans would add aditional charges for doing this.

if i were able to get the overdraft and get the deposit paid in full in one swoop, then i would be able to "regroup" my finances and the money i will get from the car into my bank then work out the shortfall and see where i need to go from there.

if i had an overdraft that is all part of the current account and is one of its main features, will they not be willing to let me do this? i didnt take the 3k overdraft at the start when it was offered as it would have made it to easy for me to get into trouble, they made it very hard to reject though, but they did say its easy to organise one in the future if i ever needed to.

i could also try to get a loan, then pay off the loan amount around 50 a month and the normal car finance payments of 99 a month at the same time for 3 years. but there is a chance this could affect my credit rating in a bad way.

i could borrow money from my family, as my grandad would rather have his family be in debt to him instead of banks, but i would feel as if i were just using him to get something i could get my self and take the responsabilities myself.

im just asking if any of you were in this situation what would you do?

hypothetically speaking, you need the car, have until 31st march to get it, have your own car to sell and some money in an isa, but may not get the car sold in time, and dont want to go into your isa if you didnt need to. would you consider an overdraft as a valid way of accessing essentially a "free loan"? and do some banks have deadlines on when an overdraft has to be paid? or are they happy as long as the overdraft amount is decreasing every month rather than increasing?

my total monthly spending from reworking out my budget would be lower due to lower insurance and lower spending on petrol than i am spending now. so would be able to quickly get rid of the overdraft, rather than paying interest over a few years.

i dont mean to be confusing people or seem like i just want to hear what makes me happy, i just wanted a bit of help from those more experienced in these matters.

KeithP

As Hintza said... why do you not part exchange your current car as the deposit?

That will avoid getting an overdraft, with the risks that come with it.

drew2k9

ive heard that the particular dealership doesnt do part exchanges at the moment, that would have been my best way of getting rid of my old car and securing a deposit.

i suppose i could have a look to see how much i actually have in my isa and how much i can get for the car, maybe even an auction for a quick sale?

do you think if i offered them a deposit maybe a bit less than what they were asking they would take it if it was cash?

KeithP

drew2k9 wrote: »

I've heard that the particular dealership doesn't do part exchanges at the moment...

"I've heard...", but have you asked them?

What does "at the moment" mean? You have until the end of March don't you?

drew2k9

im going to see them on saturday to find out more and see how flexible they are, hopefully if i look interested enough (but not too interested) then they will drop the price and trip over themselves to accomodate me.

Inactive

drew2k9 wrote: »

im going to see them on saturday to find out more and see how flexible they are, hopefully if i look interested enough (but not too interested) then they will drop the price and trip over themselves to accomodate me.

You may just get lucky, there will not be a queue to buy them, that's for sure.

Good luck.;)

emmell

Is it a main agent, I thought they all did p/x, or is it a broker or some kind of middleman.
Why don't you take a bank loan out for the full amount of the car instead of part finance part loan/overdraft.
ML.

eschaton

Need lots more info.

You say car is £4600 (payments + deposit) - any interest?

What are you getting for this £4600?

What have you got the now.

If you have money in an ISA - use it, interest rates are low.