19 Year old - Car finance

Mxttz0r

Hey guys, OP here - been busy working hard and such

I think a mod can close this thread now, it seems it has been more of a springboard for people's personal arguments/opinions than answering my questions.

Thanks to everyone who contributed and I will update if/when my situation changes.

Mx

[Deleted User]

EdgEy wrote: »

If you require a loan for something, you cannot afford it. And believe me, it is much more satisfying buying a car for £6k of your own money, rather than having a £300pm chain around your neck.

well, i guess if everyone thought that way there really wouldnt be any houseowners or private new car buyers.

Its amazing on this site how many people have paid cash for everything their entire lives and dont have a penny in debt!

Theres a huge difference between people living beyond their means and getting into a mess financially and using credit sensibly. You know you cant take money with you after you die, right?

nelly12

camelot1971 wrote: »

well, i guess if everyone thought that way there really wouldnt be any houseowners or private new car buyers.

Its amazing on this site how many people have paid cash for everything their entire lives and dont have a penny in debt!

Theres a huge difference between people living beyond their means and getting into a mess financially and using credit sensibly. You know you cant take money with you after you die, right?

Camelot I agree wholeheartedly.

Several of the people who post on here regularly have/or have had severe money problems because of their own irresponsible spending. But it's always the banks fault. Of course they are now experts in Sale of Goods Act, Consumer Legislation, the FSA, bank underwriting, Credit cards and of course the good old 'Law of everyone else's fault that I borrowed money and don't want to pay it back'. Did everyone think the bubble wouldn't burst (ie House prices?). Good luck to the OP. He sounds responsible for a young age. As for the rest of you, well you're probably jealous that he can afford to comfortably spend that amount of money per month and can raise a deposit.:beer:

Lifes_Grand_Plan

Same old, same old. Someone wants to *shock horror* get a loan to buy a car and gets shouted down for doing so.

Not everyone wants to drive round in a banger... as long as people understand what they are getting into, it is THEIR DECISION. There are many good reasons to spend good money on cars... there is one big reason not to and that is depreciation. Some people think the depreciation is worth it though, me included....

I am the root of all evil, I have a lease car... I pay £165 a month, every month for two years. In two years i'll hand the car back and be left with nothing.... big deal. I knew the costs, I worked out the benefits and decided to go for it. I'm happy and thats what counts.

diable

Do you work for yourself?

notafan

I don't get what the fuss is about.

Theres a pretty negative attitude towards the OP taking on debt.

Hands up all those that have cars which weren't bought outright with your own cash (80% aren't)

Hands up who has any type of debt that was money not spent on any type of asset (paid bills, frittered it away etc)

Who's also been committed to monthly rent or mortgage and all the bills that come with that whilst doing either of the above.

6k for a car these days is hardly a lot of money. Don't get me wrong having a loan or any debt is a pain to pay back but the OP was asking about how realistic he was to get the finance not an opinion on if he's daft for doing it.

Chances are living at home with parents with an income that is largely disposable and not responsible for much houaehold stuff (house insurance, gas, electric, phone, internet, sky etc and all the others) hes probably in one of the best situations to take on a relatively small finance agreement (in terms of getting a car i appreciate 6k isn't a small amount on its own). Whilst a car isnt the soundest investment it should still be worth something at the end even after the depreciation, so its not like he's just blowing 6k on nothing thats worthless at the end.

Also people are factoring in what he'll spend in petrol and other expenses etc and ultimately he's gunna have all that to pay anyway new car or old, with an older one maybe requiring more expense on repairs.

I think if the OP wants a car and has made the decision to buy one and do it on credit and is certain he can afford the finance agreement factoring in anything in the future - moving out/uni/ whatever else then he should do it. How many 18/19 year olds run up that kind of credit and have nothing to show for it. If the car was circa 20k probably even 10k then maybe not the best idea. But its a reasonable amount for a newish car.

Not all debt is bad. For many people without it they wouldn't own their own homes and cars and would maybe struggle to buy certain possessions. The thing everyone should be clear about is that if your using debt it costs more - and that the 6k car will most likely cost 7k with interest factored in, and as such you should be aware of the cost of any item using it against what its worth which will included the value of the item and what it means to the individual. What i would say is if you do take on the car then try and do it where you can pay early with no penalty and don't take anything else on whilst you have it be sensible.

Ultimately with the best will in the world you can tell someone not to do something and the reasons why but you need to learn for yourself. (not that im convinced its a terrible idea). If it all goes t''' up then he'll have learnt a valuable lesson that the car finance will have taught him either way.

What i would LOVE to know is who gave you insurance at 75 per month (which i loosely gather will be around 800-1k depending on the deposit and apr) for a 19year old lad that seems incredibly inexpensive in comparison to upto 3k quote you see on a regular basis for people round that age! I'm clearly with the wrong insurance company.

Derivative

It's all good and well to say it's his decision and the rest of it, but at the end of the day, taking loans out for 10%+ APR is a daft choice to make if you can avoid it.

The homeowner argument is a load of balls. With a house you're making the choice between renting forever and buying a house. Most people can afford to buy a car outright, even a shiny £15k minter if they want to save for a bit. Not exactly the same situation with a car.

There's something to be said about being polite but !!!!ing away 1.5k instead of saving up for 6 months is hardly a clever idea. 1.5k could do a hell of a lot of good at a local charity, or sat in a bank account for a deposit.

At the end of the day it is his decision and I respect it either way. I have a nice shiny mobile phone that cost me £250 more than it should have done as I loaned the money instead of waiting a month. Rather not see someone make a mistake that costs them 6 times more.

diable

EdgEy wrote: »

At the end of the day it is his decision and I respect it either way. I have a nice shiny mobile phone that cost me £250 more than it should have done as I loaned the money instead of waiting a month. Rather not see someone make a mistake that costs them 6 times more.

I have an ex wife that cost me 200k so count yourself lucky ;o))))

Derivative

diable wrote: »

I have an ex wife that cost me 200k so count yourself lucky ;o))))

No offence intended to any females that may be on this forum. I've had trouble finding a gender-neutral version of the above picture.

triticale

Lifes_Grand_Plan wrote: »

Not everyone wants to drive round in a banger...

You think we WANT to drive round in bangers?!?!:rotfl:

I want a 59 plate Golf GTI. I can't afford one so I have a '97 Mondeo.

Even if I were able to get a £20k loan, it still wouldn't mean I was able to afford one.

A car is the most ridiculous purchase to get in considerable debt over.