19 Year old - Car finance

dmg24

Mxttz0r wrote: »

To DMG:

Need is a strong word - in a word no, I do not NEED a £6000 car but I do desire one and it is well within my means to afford one. Driving has been a strong passion for me ever since I started lessons and I believe I would benefit substantially from it.

Many thanks though

Surely if you benefit from driving, you would get the same benefit from driving a car with a fifth of that value?

Chances are your life will change considerably in the next few years - you may meet someone and want to move out, you and new partner may become three and you have to move out ... you may lose your job, you may become too ill to work. These are pretty extreme examples, but can and do happen to people everyday. I would hate to see your next visit to MSE being a request for help with a debt you cannot afford.

ryan86uk

You seem to have you heart set on the idea of getting a 6K car. I particularly like the brilliant idea of using your credit card to fund your deposit. I look forward to talking to you in 18 months in the DFW forum!

Honestly though mate, I don't want to come across like a T**T to you but seriously (and everyone is of the same opinion ^^) you will regret it in a few years. Trust me when I say you will want to get your own place in a few years and if you can bank as much money as possible now when you are young with no ties do it. I'm only 5 years older than you, which is not a great deal really and because I had people telling me this stuff when I was your age I now have my own place with a low mortgage in comparison to most people my age.

I truly hope you take our advice. If you decide to go against it then like I said above I look forward to your post in about 18months time in DFW!

Mxttz0r

DMG - I really appreciate the input and I am fully aware of the potential for 'what ifs'. Without sounding like I'm trying to disregard your advice, I'm still just wondering what the likelihood of being accepted for the finance is and whether the £500/800 balance on my card will affect that.

I really do respect your concern

Derivative

Mxttz0r wrote: »

Edgey: When I said it was in my means to afford one - I meant the monthly payments on a finance deal

Indeed, but that is really not a good metric to consider. It is essentially throwing money down the drain.

If you take out a 10% APR loan to get a £6k car and pay it back over 2 years, you'll end up paying about £7200 at 300pm.

Other option is putting £245 in a 3% savings account every month and paying £5880.

Think about what that £1320 could do for you.

I want to be very candid and say you will not be living in your parents house come age 40. Decisions you make now are going to affect whether you buy or rent, what size house you can buy (if you can scrape a deposit), if you end up on state pension eating beans.

It might seem a long way off now but you're in a position right now, today, where you have the choice between living a life on the edge of a knife worrying about debts, or being the fellow with £6k in his bank account not having to worry about next weeks bill.

If you really want to know about the loan, I have a mate making about your wage in the Army, so with accom paid and similar. He got declined for a 7k car loan. I would call that responsible lending.

Mxttz0r

For the record the £500 on the CC is only to hold it till the end of the month when the bonus will pay off the CC and add anothe £1k to the overall deposit fund.

Thanks for the support(!) You've just made me feel like a complete c**t

Mxttz0r

Ok Edgey, might be worth considering savings as everyone seems to think I'm being a bit naive.

Thanks for the input everyone

ryan86uk

EdgEy wrote: »

Indeed, but that is really not a good metric to consider. It is essentially throwing money down the drain.

If you take out a 10% APR loan to get a £6k car and pay it back over 2 years, you'll end up paying about £7200 at 300pm.

Other option is putting £245 in a 3% savings account every month and paying £5880.

Think about what that £1320 could do for you.

I want to be very candid and say you will not be living in your parents house come age 40. Decisions you make now are going to affect whether you buy or rent, what size house you can buy (if you can scrape a deposit), if you end up on state pension eating beans.

It might seem a long way off now but you're in a position right now, today, where you have the choice between living a life on the edge of a knife worrying about debts, or being the fellow with £6k in his bank account not having to worry about next weeks bill.

If you really want to know about the loan, I have a mate making about your wage in the Army, so with accom paid and similar. He got declined for a 7k car loan. I would call that responsible lending.

^^ The figures speak for themselves!!

The general public don't actually care what car you drive and if it's just for getting to work then how can you justify spending so much on a car? :eek::eek:

My car is only worth £500! Does me :rotfl:

ryan86uk

Mxttz0r wrote: »

For the record the £500 on the CC is only to hold it till the end of the month when the bonus will pay off the CC and add anothe £1k to the overall deposit fund.

Thanks for the support(!) You've just made me feel like a complete c**t

Well if it stops you making a mad decision then I don't really mind that you feel a complete c**t! Rather that than 6K out of pocket! :beer: Drinks on you? :T

Mxttz0r

That seems fair. Admittedly, you're only trying to stop me do something I apparently will soon regret. I asked for the advice and a response I got.

Many thanks to all of the above, no more patronising comments necessary I think.

lawrie28

I would suggest buying a decent car with your bonus - £1500 will get you a good car, if you shop right you can even get something that looks good and is nippy enough. Save the £300 per month - religiously - for 12 months. You'll have £3600 and and a car worth a grand in a year. Now you can buy a car worth £4,500 if you wish. Do the same for another year and you'll have another £3,600 in the bank and a car worth £3500. SO you could get a £6k car and go on a fantastic holiday.

The reason people are suggesting this is not because they don't want to see you get what you want, it is because they want to pass on wisdom that maybe they never received to help people avoid making mistakes.

ANd if you like cars that much, you won't want to keep it that long, and then you'll be paying settlement charges etc. to swap the vehicle adding to the cost even more. Do it the other way and you can chop and change your car every month if you want and it won't cost you.

If you wanted to, now would be the time to pick up an old convertable - MGF, MX5, Megane and run it till the sun comes out. Flog it in three months for more than you paid for it because people pay more for a rag top when the sun shines.

Would be more fun to do this as well!