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

no_more_cards_for_me

Tixy wrote: »

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).

Couldn't put it better myself.

Good luck with the job.

andys15

MARKMAKAVELI wrote: »

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.

I would probably have been the same as you, and would not have listened, but one day you will see the error of your ways. On paper everything looks rosy, but it doesn't go to plan. Life throws a whole tonne of mess at you, but I really do understand your excitement of new job, new car. Its when you meet all your new work mates and have more invitations to go out, holidays etc. Your mindset will change, your assumed wage rises will be used as an excuse to get more debt, and you will justify it to yourself in the same way as you are now. In 5 years you might be on £30000 per annum, but your debt will be in the high 20k. Your life will have changed, married, kids and you will be stuck because your late 20s early 30s will be a constant of consolodated debt and robbing peter to pay paul. Your car will be old, and you will have to get older and older ones..trust me

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Andys15.

Good post mate, I won't quote it but completely agree with the contents.

Jon_B_2

Another thing. Didn't notice you said you'd be on 12.5k.

Absolutely outrageous, you must be living with your parents to be even considering taking out such a gigantic loan! My gosh.

ILW

But it's soooo shiny.

MARKMAKAVELI

There's alot more backdrop to this.

I went travelling, left my nice ford focus on drive as I wasn't sure when I would be back. Came back 9months later, failed MOT, needed £500 to repair, figured car to be worth £1,300 max. Sister went travelling, left her car, said I could use it til she gets back Dec 2010. So I sold my car to a mechanic for £800 which helped knock some of my debt down.

All is fine, then sister is offered money from my brother who is older and has a family to support, to simply rent the car from her until she gets back. I do the noble thing and step aside, as it would be a good deal for both parties.

Now, I am advised not to get the expensive car. So now I’m looking at cheapos. The only car I like that is cheap enough is… you guessed it… Ford Focus. The price for the same spec I had, around £1,700.

It’s humiliating enough having a naff car when all mates are doing well for themselves, but now I’m gonna end up spending the money I made from the sale, plus about £700 more to get the car I already had!

I am usually good with finances as well. It is actually something I am really good at, I know you’re all going to laugh at that but it’s true! I feel sick.

ILW

MARKMAKAVELI wrote: »

There's alot more backdrop to this.

I went travelling, left my nice ford focus on drive as I wasn't sure when I would be back. Came back 9months later, failed MOT, needed £500 to repair, figured car to be worth £1,300 max. Sister went travelling, left her car, said I could use it til she gets back Dec 2010. So I sold my car to a mechanic for £800 which helped knock some of my debt down.

All is fine, then sister is offered money from my brother who is older and has a family to support, to simply rent the car from her until she gets back. I do the noble thing and step aside, as it would be a good deal for both parties.

Now, I am advised not to get the expensive car. So now I’m looking at cheapos. The only car I like that is cheap enough is… you guessed it… Ford Focus. The price for the same spec I had, around £1,700.

It’s humiliating enough having a naff car when all mates are doing well for themselves, but now I’m gonna end up spending the money I made from the sale, plus about £700 more to get the car I already had!

I am usually good with finances as well. It is actually something I am really good at, I know you’re all going to laugh at that but it’s true! I feel sick.

Think you are falling into a real trap here. The reason your friends drive nice cars is probably because they earn more than you. Getting into debt just to try and impress your friends is a very bad idea. You need to step back and look at this logically.

andys15

Have you ever considered leasing a car. And I dont mean having the option to make a balloon payment at the end, but actually handing the car back at the end. You will never own a car, but who wants to own something that depreciates in value. Also having a loan for a car technically means you never own it anyway. Barclays might have a leasing policy where it comes out of your wages before tax. This is my next move when my car dies.

no_more_cards_for_me

MARKMAKAVELI wrote: »

It’s humiliating enough having a naff car when all mates are doing well for themselves, but now I’m gonna end up spending the money I made from the sale, plus about £700 more to get the car I already had!

No it isn't, your mates couldn't care less what you drive. If they are mates then they really don't care. As long as you have money for the next round what difference does it make. If they judge you by what car you drive they obviously don't know you very well.

What can you afford ? An older reliable car or a flash motor.

You have no deposit at the moment, so save your money.

If your journey has that much traffic then not much point having a flash car anyway, buy something cheap. That leave more money in your pocket for the fun things.

flossiejo

Mark,
Have you factored in the possibility that Barclays may not keep you on?
You seem to be assuming that you're guaranteed a job there - but there're no guarantees in the job market anymore.