Soon to be Barclays staff, need £10,000 loan for car.

no_more_cards_for_me

MARKMAKAVELI wrote: »

4. Public transport in not an option, would take over 2hrs.
5. It's an entry level job, so won't get company car.

4. 2hrs - Why so far from home ? Why so long ? Have you tried it ?

5. Even more reason not to borrow further then, see my above response.

MARKMAKAVELI

ILW:
Which part of the numbers don't you agree with? Basically, to do it the way everyone is recommending, the difference in outlay for the first year is not that much different.

I appreciate that I am taking on a big commitment for 5 years, but I'm in a position where I am starting a career and all going well my financial status will improve as time goes by.

I want a nice car, so I either start paying for it now, or in a years time. Given the reasons above, I don't think cheapo would be cost effective for the year, so I might aswell do it now.

Are you hinging your arguement on the fact I have no job security? If so this is a fair point, but if I decide I want to take that risk, can anyone offer me advice to my OP please?

no_more_cards_for_me

As I worked for Barclays for two years can I make a further point.

Barclays take a dim view of anybody who cannot manage their finances, you will have a credit search prior to any offer of permanent employment. Your really want to be squeaky clean when working for a bank, not in hock to your eyeballs with £3k or credit card debt plus £8k on a car.

It's an entry level job, I don't want to make assumptions about your pay grade but £11k of borrowing is a sizable commitment.

Personally I get a cheap car for cash and pay off the borrowing.

Tixy

MARKMAKAVELI wrote: »

Which part of the numbers don't you agree with? Basically, to do it the way everyone is recommending, the difference in outlay for the first year is not that much different.

I appreciate that I am taking on a big commitment for 5 years, but I'm in a position where I am starting a career and all going well my financial status will improve as time goes by.

-But what about the second year and subsequent years? have you costed it out to see that you can afford it in year 2 (assuming you do keep the job).

- What if all does not go well? what is the back up plan to repay the debt? If you want a career in finance/banking you simply cannot take the risk as a CCJ or worse an IVA or bankruptcy will signal the end of your career in that field.

no_more_cards_for_me

Not that different £1k car vs £8k car.
Pay off the £3k loan you already have and be debt free.
Insurance might be expensive but you cannot avoid that when young.
What guarantees do you have that your career will go well - none. 5 year committment when you don't even know if you like the job.
Nice car doesn't have to mean expensive, your confusing want with need. You need a car to get to work (?) and for socialising.

You want an expensive car - how much have you saved already ?

Or are you financing 100% with nil deposit ? (bad idea - please confirm your not doing this!)

Yes, you have no job security. See my earlier post and Tixy.

andys15

MARKMAKAVELI wrote: »

ILW:
Which part of the numbers don't you agree with? Basically, to do it the way everyone is recommending, the difference in outlay for the first year is not that much different.

I appreciate that I am taking on a big commitment for 5 years, but I'm in a position where I am starting a career and all going well my financial status will improve as time goes by.

I want a nice car, so I either start paying for it now, or in a years time. Given the reasons above, I don't think cheapo would be cost effective for the year, so I might aswell do it now.

Are you hinging your arguement on the fact I have no job security? If so this is a fair point, but if I decide I want to take that risk, can anyone offer me advice to my OP please?

Mate, most of us have been where you are right now, and if we had these forums perhaps we would have taken advice. We have had to learn the hard way.
Yes on paper your idea sounds feasable to you. Its the real effects it will have, and those effects will live with you a lot longer than the thrill of owning a nice car. What happens in year 2 when you need to get insurance, and god forbid you haven't had to claim in year one. What happens when your tax needs renewing and you haven't put money away for it. What about servicing the car. Say you dont get your contract renewed at the end of your probation. My first job was with yorkshire bank and i hated it, and they never took me on.

MARKMAKAVELI

No more cards for me: So your paying either £2,160 or £2,880 - so young driver ? On top of your £200 per month 5 year loan that's another £180 or £240. Up to £440 per month - out of how much take home ? No, a 1k car, would be about £100 p/m, insurance about £80 p/m.

2hrs - Why so far from home ? Why so long ? Have you tried it ? Yes, journeyplanner tells me a collection of buses, trains, trams and walking. It’s just not easy to get to on public transport. Driving 20mins without traffic, possibly 1hr with traffic.
Pay off the £3k loan you already have and be debt free. – I don’t have 3k debt, that is my limit. I will have around £1,700 debt by my first paycheck. The wage is crap at first, £12.5k plus bonuses, but I have factored in all my outgoings on my spreadsheet.
You want an expensive car - how much have you saved already ? Nope, I am in debt from travelling as per above comment.

Or are you financing 100% with nil deposit ? (bad idea - please confirm your not doing this!) Yes, I know it’s not ideal but as per my spreadsheet mentioned above, I can do it. AndyS, I also have factored in a buffer of around £150 p/m left for emergencies. Also, if it comes to anymore, I can simply not go on nights out for a month an save a further £120.

Tixy: What if you don't get a permanent position after your probation period? How are you going to afford the loan repayments? There is no reason why I shouldn’t. I am at a stage where it’s all or nothing for me in terms of a career, I’ve made mistakes, I’ve been travelling, I’ve done all sorts, now is the time to be career focused and I am determined to succeed. I’m so determined, I’m willing to contemplate doing this!
How have you worked out that a £1k car will cost you £180 per month?
With the expensive car are you planning on paying your first years insurance from the loan figure? thereby paying back 1 years insurance over 5years? Thats not a sensible strategy at all and you'll still have to find the money for insurance in year 2. My wage will increase as I hit targets and the longer I am with the company. I aim to get to a personal banker level within a year, which puts me on a lot more money. If I don’t achieve this, or a similar wage in another role, then I don’t deserve a nice car and would sell, probably losing 2k max. Tough break oh well, calculated risk or added incentive if you will.

Overall I appreciate what you are all saying an I do need to take a breather and have a re-think. I am aware it is a risk but even with worse case scenario, I could sell the car at a loss, it would not ruin me. Please don’t think I’m not taking your advice because I am. To be continued. Thanks.

Jon_B_2

Trust me after 3 months you will regret it. It will be fun for about a week and then you will realise that it does exactly the same as every other car on the road.

I wrote off a 5k car. Words cannot express how soul destroying that is. I now drive a 2k Ford Focus. Have had no problems whatsoever with it and I pay a little extra on my breakdown £14/pm that will cover me up to the value of £500 any mechanical breakdown.

I drive new cars for a living. Trust me, they are boring and bland and they are all the same. If you want a half decent car you need to spend £20k +

Have you thought about this for a second? You are planning on taking on a 10k loan, as we speak there are rumours that petrol could be at £1.50/litre by the end of the summer. What will the situation going to be like in 5 years? I wouldn't surprised if prices are touching £2.50 based on current trends. Will running a car and paying off a loan still be so feasible?

Think about it. If you have any doubt don't do it.

no_more_cards_for_me

Mark,

So you haven't actually done the journey yet then ?

Not your point about the level of debt, sorry for the misunderstanding.

You owe £1,700 and want a further £8k. Total borrowing £9,700 on a wage of £12.5k. Bonuses are irrelevant as not guaranteed. I'd say there is not much chance of you getting this sort of loan. Sort of removes the problem as nobody in todays market is going to lend you that sort of money.

100% Finance :eek:

Your going to work for a bank and you think this is a good idea. You have no equity in the car. Little point in worring about resale value then as you will always be in negative equity. Bad idea!!!!!!

£150 for emergencies - Tax, maintenance, tyres etc. Not enough ! What happen's when the car breaks down. How are you going to pay for repairs. Or are you going to pay for a warrenty on this car as well.


No Guarantee that your going to stay with the bank, what percentage of workers on probabtion stay. Like a said Barclays is a nice place to work but Do you like the work ?

Sell the car for a £2k loss - you have no deposit. What ever you sell the car for you will be out of pocket. You don't have the money for a deposit - exactly how are you going to cope with this ?

Sorry Mark but you haven't thought this through, save some money first. 100% finance is a ridiculous idea - you will be out of pocket.

Jon and Andy make very good points above.

Tixy

Mark, glad to hear that you are listening. I know its exciting to think you can afford a great car, but we are all trying to help (even if it doesn't feel like it).

Once you have been in the job a year and know that you enjoy it and maybe have had a small payrise that would be the time to consider something a bit more flash. Hopefully by then you'll have saved up a bit of cash. That said by then you may decide you would rather use your money for something else (savings for a house or something) rather than a car.

Just one further thing, on the starting salary you have mentioned you would probably find it really tough to get an unsecured loan for £10k, its too high compared to your income level in the current economic situation. Now maybe if you are an employee barclays would be prepared to lend you more (I don't know?) but hopefully the fact that other mainstream lenders would not should be an indication to you that its to great a risk.

Good luck with your new job (and I hope you do rethink).