19 Year old - Car finance

Lifes_Grand_Plan

triticale wrote: »

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

I disagree... what about getting into considerable debt over clothes, food, boozing, gambling, holidays (possibly), get rich quick schemes, getting married.....

There are lots worse things, especially if you need the car for your job and its important that you have something reliable.

notafan

EdgEy wrote: »

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.

But it is his decision not anyone else's.

It isn't a home owner argument - I'm simply saying that your're buying an asset - the value of a house can go down. And its not a case of renting forever your making assumptions about anyone that rents - some people might well be able to buy a house outright but choose not to. Some people rent and save to buy.

Yes everyone could save up and eventually buy stuff outright but if he doesn't want to and is well aware that there is a cost involved then again its his decision. He'd be paying interest to get it right away instead of waiting years.

He doesn't want to give it to a charity and it has nothing to do with his post. However the 1.5k would serve him better (either as paying interest on a car on not) then on some charity. He'll struggle to that that much savings interest in 1.5k - a couple of % which is mi
nimal currently - and again he didnt ask for savings advice.

His original question was do we think he'd get it.

A rough guide would be yes. What he shouldn't get is everyone telling him how stupid he is because like the vast majority of people that buy a new or newish car most will do it through some type of finance.

His financial decisions are his own, and it is ultimately up to the OP to decide what is best for him and his situation. Nobody will know his own circumstances better then he will.

One last quick thought is that he'll likely save a decent chunk of cash over term of the finance anyhow in fuel prices if the cars more efficient then an older banger.

Peelerfart

When I'm lying in a hospital bed with my family (hopefully) surrounding me,I will take no comfort in not buying the very things that make life worth living. What those things are, is a matter for the individual.

This is, of course a money saving website and some are correct to point out the expense of it all,
but hey - "ain't we got no soul?"

notafan

triticale wrote: »

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.

Affordability of the finance isn't his issue, he's obviously well aware of the finance payments involved. He's also clear on his situation and what he earns.

You might well not be able to afford the car you want but chances are its because your priorities are different to the OP's. You might have chosen to buy a house, or have children or get an extension or whatever other reason.

- and i'm not saying they are bad decisions they are just your personal decisions.

- say for example you could get that 20k loan for a golf GTI, are you not able to afford the repayments because you don't earn enough or because you spend your money on other stuff thats a higher priority to you and your personal situation (house, kids, mobiles, satalite tv etc) is it really the paying X amount a month you'd have to pay that makes you cringe or is it what you'd have to be able to give up to afford it.

Peoples choices are down to their own circumstances not strangers perceptions of them.

notafan

Peelerfart wrote: »

When I'm lying in a hospital bed with my family (hopefully) surrounding me,I will take no comfort in not buying the very things that make life worth living. What those things are, is a matter for the individual.

This is, of course a money saving website and some are correct to point out the expense of it all,
but hey - "ain't we got no soul?"

Exactly - since when was the aim to save up as much money as possible so we can all die and give a large proportion to the tax man.

Derivative

We're not really getting anywhere here are we, just repeating the same points.
The 'average' person has no financial education whatsoever. If you choose to live your life like the 'average' person, that's the life you'll get. Average.

There's nothing wrong with buying a new car. What is daft is throwing £1500, 10% of net income, probably 150-200 hours of work, straight into the hands of someone who already has more money than you. And they have more money than you by not making daft decisions like this.

The homeowner comments are silly and I'm not sure why people bring them up. Over 25 years a house is likely to stay about the same in real terms. A car is likely to be worthless at that point. Not just in monetary terms, a car is going to be a heap to drive if it's been used a fair amount. House will still be there, barring natural disasters.

If you want to enjoy your money, not taking out a loan allows you to take a holiday as well as getting the car. It's all about deferring gratification. I'm not advocating never spending money, I'm saying that loans are directly taking a lighter to your hard work.

RedwoodBrook

OP - Just out of interest. You said you had considered all the possibilities..loosing your job, wanting to move out etc etc...

So. What will you do if you loose your job?

notafan

EdgEy wrote: »

We're not really getting anywhere here are we, just repeating the same points.
The 'average' person has no financial education whatsoever. If you choose to live your life like the 'average' person, that's the life you'll get. Average.

There's nothing wrong with buying a new car. What is daft is throwing £1500, 10% of net income, probably 150-200 hours of work, straight into the hands of someone who already has more money than you. And they have more money than you by not making daft decisions like this.

The homeowner comments are silly and I'm not sure why people bring them up. Over 25 years a house is likely to stay about the same in real terms. A car is likely to be worthless at that point. Not just in monetary terms, a car is going to be a heap to drive if it's been used a fair amount. House will still be there, barring natural disasters.

If you want to enjoy your money, not taking out a loan allows you to take a holiday as well as getting the car. It's all about deferring gratification. I'm not advocating never spending money, I'm saying that loans are directly taking a lighter to your hard work.

In your opinion

notafan

EdgEy wrote: »

We're not really getting anywhere here are we, just repeating the same points.
The 'average' person has no financial education whatsoever. If you choose to live your life like the 'average' person, that's the life you'll get. Average.

There's nothing wrong with buying a new car. What is daft is throwing £1500, 10% of net income, probably 150-200 hours of work, straight into the hands of someone who already has more money than you. And they have more money than you by not making daft decisions like this.

The homeowner comments are silly and I'm not sure why people bring them up. Over 25 years a house is likely to stay about the same in real terms. A car is likely to be worthless at that point. Not just in monetary terms, a car is going to be a heap to drive if it's been used a fair amount. House will still be there, barring natural disasters.

If you want to enjoy your money, not taking out a loan allows you to take a holiday as well as getting the car. It's all about deferring gratification. I'm not advocating never spending money, I'm saying that loans are directly taking a lighter to your hard work.

And what a load of rubbish -

If he wants to go on holiday he could likely afford that too, you continue to make presumptions that either A) he wont be able to afford to or that he'd finance that too. And were not talking about housing or holidays except...

I didn't bring up a housing it was already mentioned. What i do point out is that people go get mortgaged to the hill and think its ok because its a house, and as though its a fail safe investment and think debt for a house and the interest which is a considerable amount over the term is ok because you bet on the value increasing. A house like a car can be a sensible or stupid decision - depending upon your circumstances.

Its not a person hes giving money to its a company. In a similar fashion savings you keep sat in the bank are also giving money to these companies or ''people'' you mention - the common misconception being theres no cost involved with saving because its not visibly deducted people dont see that theres a profit to someone else -(the interest they earn vs what you actually get).

The 'average person' likely has the financial education passed from parents or family and should use common sense to asses what's best for them. If they don't they use their own learning curve, taking on debt doesn't mean they're wrong.

If he chooses to buy one through finance or save then its down to him.

Bear in mind though that whilst your 'deferring your enjoyment' for a couple of years to save for this car outright, someone could have already had a couple years use out of it and have cleared any finance owing. They'll have been able to enjoy the car for however many years and whilst they might have KNOWINGLY paid more due to the interest, they'll have an asset, likely saved money on fuel, repairs, mot bills etc and are in a position to do exactly the same again should they wish. Also keep in mind that you can spend your life deferring your enjoyment but you might get hit by a bus after 3 years of saving and what would be the point.

The decision shouldn't be based on anyone else's view. I'm not saying your opinion isn't valid - far from it but it is only valid for you. You've come to a conclusion and anyone else such as the OP can do exactly the same. What makes the opinion matter more to that individual is their own values not the values of someone like yourself.

I just think its a bit sanctimonious for people to spout on about how ridiculous it is that someone wants to purchase something on finance yet if its a different product or if it was for them the scenario would be very different because of X,Y or Z.

drbesty

So you don't think that taking on £6k worth of debt, in a recession, at the age of 19 is maybe not the best idea? Aswell as the cost of the finance itself you have insurance at anything upto £2k per year, tax, repairs, petrol etc, all for the sake of driving round in a shiny box. Take a look on autotrader, you can get a really good car for less than half the price