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

taka

Honestly, if I was in your shoes I would be buying a cheap car with as long as possible before next being due its MOT. I would concentrate on getting something that will do the job until your probation period is up and you know whether you will still continue to be employed.

Pay off your remaining debt ASAP and start saving for a nicer/better car. At worst this way you'll only have a small amount of debt (if any) to pay off should the worst happen and don't continue to be employed after your probation period. You would also have a car that might not be worth much but then again it didn't cost you too much to begin with and minimal depreciation.

This does not mean you have to have this car for the next 5 years just that it is the best and most practical solution AT THE MOMENT (eg for the next 6 months to a year) until you know where you stand with your job.

MARKMAKAVELI

Taka, no MOT due as it's a new car, so for the 2 years I have it, no MOT.

No road tax costs for the 2 years I have it.

Warranty so anything major mechanically goes wrong, I am covered.

Could argue that it could be more cost effective than buying a 2k banger. Banger - I would have to MOT, road tax, pay for anything that needs doing. Even if everything went amazingly well , no repairs, with banger my outlay for year 1 would be roughly 200 p/m. Same as the lease car. Banger would depreciate anyway and in 2 yrs I should be in better position to commit to something better long term.

no_more_cards_for_me

Mark

How much do you have to put down ?

3 Rentals or 6 in Advance ?

Insurance still has to be paid - I'd get a quote BEFORE I did anything.

Good luck

stclair

MARKMAKAVELI wrote: »

Hello All,

Please help me if you can. I am due to start as a cashier for Barclays in the next week or so. I would like £10k for a car (with insurance etc all inc in this price).

1. Do I have to finish my 6month probation before I can get cheaper loans etc?

2. If I am eligible straight away, what is the standard rate? I read 8.8% on website, but this seems quite high.

3. If I'm not eligible, what is my best course of action? I already have a £3,000 credit card with Natwest, 0% on purchases for 6 months but this would not be enough as I can only afford repayments of around £200 p/m for 5 years. Do I just need to ask Natwest for a more funds on the credit card, or for a separate loan for x amount?

Appreciate anyone who replies, if you need more info I'll reply in a matter of minutes.:T

You would need to complete your probationary period first if you wanted it at staff rate i can imagine !

samhuzz

Hi Mark

If I were you I'd definitely look at the leasing option, but make sure you really like the car or else you will soon resent paying £180 per month on a car that is only "nice enough"! My sister was in your situation, she wanted a Mini a few years back and got a loan out for one that was 6k. She only bothered about it for a few months, and has been moaning about paying for it ever since! She paid £220 a month I think. Anyway, she sold it the other week and only got just over 2k for it. This is why I think you would be better off leasing esp. if you get to change the car after a while. Plus you are in an ideal position if your dad can do it through his business.

BLT_2

I am going to watch the papers with interest on this one - starting a job as a cashier and wanting to borrow 8k because he or she doesnt want to buy a cheap car. My monthly available cash after outgoings is more than the OP earns each month before outgoings, and I wouldn't take out a loan for an 8k car.

asharon

Give yourself a budget of 3k and look for a car that has FSH and look after it. You could go cheaper, but I sense you don't want to which is fine but the argument that buying a 1k car eats money can be true but once you have bought the 8k car that will loose its value a lot quicker and every dent you see will be very painful.

It's only advice, take it or leave it but a car is just a car and you would appreciate it more if you saved for one and purchased the one you really wanted with cash and not a loan even if it was not for a few years.

MARKMAKAVELI

no_more_cards_for_me wrote: »

Mark

How much do you have to put down ?

3 Rentals or 6 in Advance ? 3 rentals then 23 monthly payments

Insurance still has to be paid - I'd get a quote BEFORE I did anything. I did and it's the best price I have seen for anything in ages, given my circumstances. It's only a 1.4 which helps!

Still gonna cool off a bit an check job out. Thanks again, i'll edit first post to stop people replying.

taka

MARKMAKAVELI wrote: »

Taka, no MOT due as it's a new car, so for the 2 years I have it, no MOT.

No road tax costs for the 2 years I have it.

Warranty so anything major mechanically goes wrong, I am covered.

Could argue that it could be more cost effective than buying a 2k banger. Banger - I would have to MOT, road tax, pay for anything that needs doing. Even if everything went amazingly well , no repairs, with banger my outlay for year 1 would be roughly 200 p/m. Same as the lease car. Banger would depreciate anyway and in 2 yrs I should be in better position to commit to something better long term.

Sorry I wasn't very clear - I was meaning if you bought a banger (for the MOT).

Personally I wouldn't want to commit to a leased car either until I knew for sure I could afford it for the minimum term. If that is the route you want to go I would be looking to take on the lease after your probation is up and you definitely have a job to pay for it!

Over 2 years...

Choice 1
Lease car @£180/month for 2 years = £4320
No repairs, MOT or road Tax
= £4320 +insurance (with no car at the end of it)

Choice 2
Banger £2000
Road tax - say £155/yr x 2 = £310
MOT £55x2 = £110
£??? repairs
= £2420 + ins + repairs (with a car at the end of it worth £XYZ)

Will the banger cost you more than £1900 + the bangers value in repairs??

I don't think a £10k loan would be possible on your salary especially as you are only just starting work with the company.

Insurance x 2 years - what is the difference in insurance costs between the 2 options?

Good luck with your choice!

PS. Are you sure you'll be able to park at your new job or nearby? Is there a charge for a parking pass? Parking passes are like gold dust at my work and cost ~£300/year. Essentially you need to live umpteen miles away and have multiple children to pick up from nursery/school or need a car as a requirement of your job to even be considered and even then it is majorly oversubscribed.

MARKMAKAVELI

Good post taka.

In summary with option 2 I feel that I know I defo have a good, reliable car with the focus on I know what my costs will be.

The banger has variable costs, which could go either way but in my position, a
"no suprises" option is the best imo.