20k Loan

crampo_2

jonesMUFCforever wrote: »

I don't believe that LTSB or any sane bank would lend you £20k at your age regardless of rates.

you sure lloyds have offered you a loan for that much with your salary taking into account your current outgoings?

It would seem insane, but my bank manager has assured me, checked my account and they are more then willing to give me the loan. He even phoned me the other day to ask me if i was or wasn't. And i don't pay out for anything else except the £200 fianace for my car, which will be settled in the loan.

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

Insurance is around the £2500-£2700 mark. Considering my Corsa cost me £1800 for first year then £1100 second year and the mustang's engine is 4 times bigger.

Yes it does seem very crazy that im doing this, but ive worked out what it will cost, My corsa is coming up for its second service in june and will probably need new tyres , brakes etc. It does 30 miles to gallon If that. Ive lost around 5K on my corsa in just over a year and its only done 13k miles from new. I dont won't to hold onto something that by the end of this year will be literally worthless. At least i know that in a mustang i know it will hold its value for a while.

elfen

Corsas are much nicer anyway. Women won't be as intimidate that you're trying to punch above your weight, and if you want a lady friend, you'll be less likely to get the gold-digging sluts.

*Vikki*

noooo dont do it! Talking from experience too! Never again.

CHR15

elfen wrote: »

you'll be less likely to get the gold-digging sluts.

Where can I buy a Mustang?? :j:j

bristol_pilot

The most successful lady-puller I know just tells them he has a Merc - in fact he can't even drive. He doesn't live with his parents though - all a matter of priorities really.

Don't waste your money on this nonsense, you can't afford it.

covmutley

Dont agree that it will be worth nothing in a few years,quite the opposite. Probably cheaper getting the mustang than buying a new ford focus over 3 years.

You are obviously into your cars- bide your time. There are plenty of great cars for not a lot of cash to have fun in. How about an mx5/mr2 for a year (4k), then go elise (9k), then boxster (13k)? Or clio 172- focus st. 20k is a massive commitment on 1k wage

Apples2

OP's on a low wage, no thought or consideration for the future

Inexperienced driver + Powerful car = carnage

Absolutely ridiculous idea.

OP, you have no idea just how bad this crackpot idea of yours is.

Get some experience behind the wheel, earn a proper wage and START SAVING...

By the time you can driver properly, you will have saved the bulk of the cash for a good car.

crampo_2

covmutley wrote: »

Dont agree that it will be worth nothing in a few years,quite the opposite. Probably cheaper getting the mustang than buying a new ford focus over 3 years.

You are obviously into your cars- bide your time. There are plenty of great cars for not a lot of cash to have fun in. How about an mx5/mr2 for a year (4k), then go elise (9k), then boxster (13k)? Or clio 172- focus st. 20k is a massive commitment on 1k wage

Oh yer , don't get me wrong , i know they say you lose the most within the first year, but as the way things are going with the market etc. i don't wont to find out that i own something thats worth like 5k.

I actually wanted a classic car to be honest , pontiac firebird. My dad owned one years ago, but insurance companies wont touch me until 23/25. So im going with the other end of the scale with 2005-2008 Ford Mustang, nice V8 engine & 400BHP.

Also dont get wrong that porsches are nice cars , but i will never wont to own one , they are such a common car now , and everyone thinks they are the car to have if you got money.

whats the road tax on that £450 a year?

£190 a Year

An expensive car will impress the girls, parking it on your parents drive wont"

Im not doing this to impress no-one. If they cant take me for me , well they know where they can go , but thats another matter.

LoopyPrune

Sigh. Well good luck with the new car I don't think there is anything else we can help you with.

welshy1982

crampo wrote: »

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 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

On 14.9% you will actually pay £7,903.17 interest charges...more alarmingly your monthly payment for the finance is going to be £465.05

leaving you with (provided the £1000 is your take home salary?) about 535 quid a month. Depending on the number of miles you drive from my best guess, you're going to pay about £4000 a year in fuel...thats £300+ a month...

The tax isn't too bad, but your approx 225 quid a month insurance leaves you with a tenner to spend on everything else...

A competition...

All the above makes you

a) An idiot
b) Of extremely rich parentage
c) A combination of A + B

Sorry to be blunt...

One question for you...with your current finance deal...once your £200 is paid, plus petrol in the corsa, tax, insurance etc...and your day to day living what amount of money are you honestly left with?

I am 27, I take home about £2000 a month, plus callout and on call payments, and this year got a £6000 bonus, but once my mortgage and debts are paid, its still a struggle come month end...and thats with my wife's wage of around £1400 on top of that...

I drive a KA...it costs me £30 for 340 miles, and my insurance is less than the cost of a meal out each month...I paid cash for it, and when I have enough money saved, I'll buy myself something nicer...

Some people like cars, quite frankly I am happy to drive one of the most feminine cars on the road...because I like having a life...5 years ago, I was earning about the same wage as you, and had slighly more than £20k debt...as of this week I paid back my last £4000 of it, and the weight lifted off my shoulders is awesome...my advice is don't do it....

Erica Jong said "Advice is something we ask for when we already know the answer but wish we didnt"...

My final thoughts...on a loan of that size, anyone who meets the expectations of a loan provider's cash models or propensity scoring system will receive a preferential rate...you clearly don't hence the 14.9%, and your bank manager needs to give himself a talking to for thinking about lending you this money...and honestly, you seem troubled at the thought of popping into the branch of a different bank and opening a new account and switching banks...so how much do you actually want the car...

You've probably already made your mind up, and I dont mean to patronise, but my experiences of debt led to some pretty bad times (financially, mentally and emotionally)...and it pains me to think of other people making the mistakes that I did...