question

cd02

Hey all..

first of all just want to make it clear.. this info is not for me.. i learnt from my mistakes and will never touch another loan or credit card..

Right, even thou i've tried to talk my cuz out of it, he wants to take out a £8000 loan to purchase a new car. he's 19, works full time, lives with parents and earns about £13000 a year.. any ideas on where he could start..

he's looking for a good rate etc etc

any help i could pass onto him would be appreciated...

thanks

Xbigman

He should try his bank as a first step. After that there are lots of lenders but most won't touch him at that age and that amount. Are his parents prepared to go guarantor? That might make a difference.

Point out that buying a new 8k car on credit means the car will actually cost 10 or 11k, and it will be worth 6k after 6 months.
Regards



X

Rafter

He should also get an insurance quote!

Usually the only sensible reason for someone aged 19 to buy a new car is that fully comp insurance (usually costing about £2k) for someone that age is sometimes thrown in for free - I think Citroen used to do these deals.

Otherwise much more sensible to buy a £3k second hand car for a few years until some no claims bonus is built up.

R.

cd02

I'll put your ideas to him and see what he says.. thanks...

finallydebtfree!!

the best finance I found believe it or not seemed to be from the car dealer (through black horse) but I was young and niave then!
tell him to beware, I only financed the last £2000 of a £6000 car but it took me 2 1/2 years to pay off, by then the car was worth less than £4000!
then when I paid that off I wanted a trip of a life time to Australia so thought ive done without the monthly payment for the car this long and took out a loan for £3000 to pay for it (and credit cards, store credit for laptop, etc) I was half way through paying off the loan and thought "this is rediculous" have just paid off the loan and have sworn to myself that I will never get credit again!!!!
if I had never got the car dont think I would have ever got into that mess! (not to say it hasnt been worth it, but its taken 5 years now to get debt free!!!)

cd02

finallydebtfree!! wrote:

the best finance I found believe it or not seemed to be from the car dealer (through black horse) but I was young and niave then!
tell him to beware, I only financed the last £2000 of a £6000 car but it took me 2 1/2 years to pay off, by then the car was worth less than £4000!
then when I paid that off I wanted a trip of a life time to Australia so thought ive done without the monthly payment for the car this long and took out a loan for £3000 to pay for it (and credit cards, store credit for laptop, etc) I was half way through paying off the loan and thought "this is rediculous" have just paid off the loan and have sworn to myself that I will never get credit again!!!!
if I had never got the car dont think I would have ever got into that mess! (not to say it hasnt been worth it, but its taken 5 years now to get debt free!!!)

I know all about money problems because of loans and credit.. had to go bankrupt cause of them but my cuz won't listen..

Robert_Sterling

Xbigman wrote Point out that buying a new 8k car on credit means the car will actually cost 10 or 11k, and it will be worth 6k after 6 months.

Here here to that

mrcow

finallydebtfree!! wrote:

the best finance I found believe it or not seemed to be from the car dealer

Errr.....please define "best"? (because I don't believe it )