20k Loan

crampo_2

I need some help with a loan, ive looked on the loan guide and comparing loan websites.

I need £20,000 over 5 years , The Bank (LloydsTSB) have offered me one , but at 14.9% which means i be paying back around £9,000 interest.

I was looking for more along the lines of 8-9%.

I see that First Direct & Nationwide have got these type of loans , but its says you already have to be a customer or sign up and have a least X amount being paid in. I dont want to leave my current bank account with Lloyds.

Im 20 earn around £1k a month and only pay finance on my current car of £200 a month and part of the loan will be used to pay the rest of the finance off.

Can anyone help me out

Happytogetdebtfree

I think all loan intrests are very poor at the moment. Is it worth it against the apr of car loan? If your not happy with the rate you are offered don't tak the offer maybe wait and see in a few months ? Good luck x

crampo_2

Oh right , Forgot to mention that this new loan is for a new car.

Happytogetdebtfree

don't know what to suggest what's te car dealership offering that may b better that the standard loans loan offered if you can save 30% of car value you can get at 0% on rest of payment of some cars but then I never have a stash of cash that would cover 30% of car value hence why I have an old banger lol

crampo_2

The car dealership is offering to take my current car (Corsa 08 Design) and give me around £6500 and px with a Ford Mustang which is for sale at £19,995. They dont offer any fianance etc.
£20,000 Split
- £2700 : insurance
- £3500 : fianance left
- £13500 : Car

Thats how ive worked it out.

tripled

Seems a very expensive way of getting a car... can't you save up for it instead? The bank then pays you money instead of the other way around.

yorkshire-lad

ford mustang at 20:eek:.

do you have a gurantor? i was unable to get any loan at 19 for 5k without having someone over 21 to agree it with me.

IMO, getting involved on a 20k loan at 20 is daft...im talking from past experience (check sig:o)

good luck either way;)

housebuyer_abc

crampo wrote: »

I need some help with a loan, ive looked on the loan guide and comparing loan websites.

I need £20,000 over 5 years , The Bank (LloydsTSB) have offered me one , but at 14.9% which means i be paying back around £9,000 interest.

I was looking for more along the lines of 8-9%.

I see that First Direct & Nationwide have got these type of loans , but its says you already have to be a customer or sign up and have a least X amount being paid in. I dont want to leave my current bank account with Lloyds.

Im 20 earn around £1k a month and only pay finance on my current car of £200 a month and part of the loan will be used to pay the rest of the finance off.

Can anyone help me out

The insurance on that is going to be mental...

paulmcerlean

you sure lloyds have offered you a loan for that much with your salary taking into account your current outgoings? that would put your credit to debt ratio sky high and i am surprised lloyds are taking it on.

did you use the online banking personal loan tab where it gives you an apr based on your account or did you actually apply and get offered the loan?

consider carefully before commiting yourself.

CHR15

Will you be able to save another £2,700 for insurance next year along with paying out for this astronomical loan (assuming you don't make any claims)??

Have you considered running costs (servicing, Tyres, brakes, fuel etc)?

Do you intend moving anywhere during the period of your loan repayments (unlikely to get further credit with that debt over you)

Seems like financial suicide for a 20yr old on £1k a Month... crazy.... pure crazy.

LoopyPrune

I was in the same boat as you when I was 21. I went to my local Suzuki dealership and was taken in by the brand new Vitara. Salesman saw this and must have been rubbing his hands with glee. He secured me car finance for 15k with GE Capital. Looking back he must have told the finance company some porkies to get the loan cause I had only been on a temporary contract with Orange for 6 months. Anyhow, I kept up the repayments for like 6 months before I couldn't manage anymore and they ended up auctioning the car to reduce my debt. Fast foward 13 yrs and there is still 9k owed on this fiance but I never heard from them again.

You may be nothing like me but I hope you arent seeing this car through rose tinted spectacles. 20k is alot to have around your neck for 5yrs and 21-26 are the fastest years of your life where anything can happen and often does. Also take into account buying the car is the easy part, a mustang is a very costly car to keep and maintain. Your 1k per month would be halfed by loan repayments with a further payment for insurance around 200 say for a 20yr old. Petrol on a 4.6 litre engine per week say £100. Suddenly your 1k is now about 50 quid per week. Step back and give yourself time to think about it.