20k Loan

crampo_2

welshy1982 wrote: »

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

The first reason i came here was because i went to my bank and the had offered me that 14.9% , i wanted one that was around 8-9%. Im not going to take a loan out where i got to pay back more then 5kish.

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...
We've worked out its around £80 - £100 a tank , 35 miles to the gallon = around 350 miles in one tank. Compared to what im doing now that 100 Miles MORE.

The tax isn't too bad, but your approx 225 quid a month insurance leaves you with a tenner to spend on everything else...
I don't pay my insurance monthly, ive always paid it off in one lump sum. Its better , and also it looks good on profile & i dont get clobbered by their apr.

A competition...

All the above makes you

a) An idiot
^Why would i be a idiot for wanting something. Ive worked hard , so why not treat myself. Im not like every "teenager" out there, i have my money worked out for every month i have every documented , how much i can spend on things , i still go out a couple of nights a month and spend £20 a night, you dont have to spend to have a good time.
b) Of extremely rich parentage
^ never , my parents have never brought me anything. Only Bdays & Xmas's i used to get stuff. Ive worked every day since 16 and going to college to earn the possesions i own. TBH i actually hate people (& hate when people say) that scourge off their parents.
c) A combination of A + B

Sorry to be blunt...
I don't mind , id rather people be straight with me
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 Borrowed £7k on finance and paid £5.5k off . Car was £12,500.
Ive paid off half of the finance leaving me with £3500, i Pay £207 per month. In the loan i will be paying off the rest of finance.
I get left with around £800 a month spare to which, £250 goes into a isa acount which saves up for savings , insurance etc.
then i spend £80 a month on petrol. and the rest stays in my bank , normally for spare money or i pay off electric bill.
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...
As much as i would like , the way the job ecomony is at the moment im not willing to move to a job and risk it all , then leave my current stable job.
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%,
I hence its 14.9 and im paying back £8k over the £20k loan. Im never going to take the loan at the bank , i went to the bank to see if it was possible for to get the loan of that size in the first place.
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,
I havent made up my mind , infact i have been doing research on the car etc since last year , im not going to rush into something stupid. I have looked around loads of places selling these types of cars and finding best deals. etc. I know how everything will be paid and how everything would work out. 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...

But again, I know that i can pull out at any moment and say "you know what i actually cannot afford that" step back and take a reality check.

Happytogetdebtfree

Sorry it seems like we are all jumping at you and certainly no need to call you an idiot. I think 20k is alot just now why would you want a 20k car I haven't a clue of what car you talk of btw. You will get a Loan I you want one just becareful with your cash that's all I'm 26 and look at my combined debt wishbid of waited an paid cash for things learning the hard way now x good luck

vaporate

Apples2 wrote: »

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.

Love it lol

Op, these posters are talking pure sense. DO NOT get the 20k loan. It is madness. All for 4 wheels to get you A to B. Why does it matter if its fast? Still a speed limit via law.

Boozer

I am not sure you should do this, from your quote:

We've worked out its around £80 - £100 a tank , 35 miles to the gallon = around 350 miles in one tank. Compared to what im doing now that 100 Miles MORE.

You seem to be saying that it will be cheaper than the corsa because it has a bigger tank, and your 35 miles to the gallon, i will look it up later but is that a combined MPG???

I know you would love this car and i wish you all the best if you get it, but dont forget you also have to save up £200 a month for next years insurance also, or you going to take a loan to cover that when the time comes??

Boozer

I really do not know how much research you have put into buying this car, i am not even sure which model it is, 400 BHP does not seem to be standard( i may be wrong), the ones i see are quite a bit below that figure and even then the quote from EVO is:

Fuel proved to be our biggest headache with the Mustang. Not due to the amount it drank – motorway journeys would regularly average at 23mpg, mixed driving around 19mpg, McQueen-style clogging-it closer to 16mpg.

But you are quoting 35 MPG from a car which seems to have more power than the one they are testing.

I think you should stick to the corsa for now.

inmypocketnottheirs

You wont get 35 mpg from a Mustang!!

paulmcerlean

My friend has a mustang (MY2009) and although earning twice your wage cannot keep up with the fuel consumption.

It does 11MPG and 15MPG on the motorway. You will never see 35MPG, wise up.

I still dont think Lloyds will lend you the 20K at any apr when it comes to putting through an application - your income is just too low.

Also, I would be extremely surprised if you found a 20K loan for 8% or less at your age with your income, unsecured.

It wont happen.

viktory

crampo wrote: »

And i don't pay out for anything else except the £200 fianace for my car, which will be settled in the loan.

Quite apart from all the other pertinent points made on here, what about rent? What if you meet a super fit girly/guy and want to set up home together? You'll never be able to afford with this milestone hanging round your neck.

I take your point re depreciation but surely it would make more sense to buy a cheaper car (in all senses) until you are older and earning more.

R0bert_Sterling

You don't need a car to get to the Debt Free Wannabe Board or the Bankruptcy & Living With It.

Those are the only two places you will be in about 12 Months.

Fast forward 12 Months and I will pre-write your posts for you....

• I owe more money than the cars worth
• I can't afford to run it, can't afford to sell it
• I'm desperate to move in with Gavin so need a loan for a deposit, who will give me a loan?
• How can they expect me to make those ridiculous payments?
• They should never have lent it to me
• They should have known I couldn't repay that on £20k so it's their fault
• This was irresponsible lending
• Is the loan unenforceable?
• It's not my fault, this company should be closed down
• I've paid £1,000 to a Solicitor who told me he could get the debt written off but now I can't contact them

Your comment about 35mpg for a Mustang pretty much suggest your post is a Troll post, Absolutely RIDICULOUS !!!

yorkshire-lad

according to his other posts, he pays £25 a month for a phone.

i agree with the above, and there is no chance of 35mpg for a 4l v8.
i got 330 miles tank from my old car and that was a 1.8, and all motorway driving.
i now drive a 2ltr turbo and combined (town and motorway) i average around 28mpg.

anyway, im not on here to slate or anything. i just dont want people to make the same mistake as i did with getting a car on finance.

EDIT: just for comparison, my car is 200bhp and im 21 with 4years driving and most insurers would not give me a quote for this car until i turned 25 (sorry, they did give me a quote online, but when you phone up, they just turn you down)