Taking Out A Loan (Help Wanted)

flyingguy

I don't usually reply to posts like these, but I thought I'd just mention something which I think hasn't been said yet.

If you borrow £12k, and have £6k to pay some of it back, it won't be just £12k you have to repay. If you manage to get a loan which atm is highly unlikely, you'd be lucky if your total figure is less than £15k to repay. So a £12k car is going to cost you a lot more.

I've learnt this lesson the hard way. Bought a car for £12k, had £6k in the bank to pay it off, and guess what, I didn't pay it off as I thought, I'll keep this money and just make the monthly repayments. Well a year down the line, I couldn't afford the repayments and the £6k in the bank was a lot less than £6k. Had a car worth nearly £12k and couldn't sell it for love nor money. Other posters have mentioned this, unless you trade it in with a dealer (which they'll pay you way below the asking price), you won't be able to sell it privately as how many people have £12k in cash to buy a second hand car? Ending up selling the car for £8.5, and used that money and the rest of my savings to pay off the loan.

End result = no money + no car

I now earn over £30k and drive a car worth £500, and though I wish it was a nicer car, it acts as a good reminder for what I had, and what I lost, and now I look at the car market with open eyes. I'll probably spend 2k of savings on a car soon, but anything more than that is pointless. Having an old car means you don't worry about scratches, bumps and dents. Oh and if this isn't enough info, when your 12k is out of warranty, wait till you see how much replacement parts cost. My ABS unit failed 1 month before the warranty was up, and I was told it would have cost me circa £1500 to replace.

Anyway that's my bit said, if you're still dead set on buying this car, then at least sell your car (which I think you'll struggle with, and I doubt you'll get £5-6k for a chipped 2004 seat), and borrow someones car or hire a car for two weeks. Then all you'll need is to get a loan for £6k. It might cost you £200 to hire, but that's a lot less than the interest on a 12K loan!

Happy driving!

Added afterthought, have you had any insurance quotes on an M3? For a 23yr old I can't begin imagine how much that would cost what with prices they way they are?

laidbackgjr

In the current car market, I reckon you'd get around £3,500 for trade in on the Seat and a private sale might net £4,500 after costs of advertising, paying 2 lots of car tax, 2 lots of car insurance (possibly only one policy can have your no-claims bonus, so be prepared to pay a lot) whilst you have both cars. By all means buy then sell if you can get the credit (I did it once and will never do it again due to the hassle). It would also be a lot easier getting credit for £6k rather than for £12k if you sold before you bought.

glasgowsaver2011

bill_whu wrote: »

Nice to hear from another enthusiast in a similar situation, was starting to realise I'd posted in completely the wrong place about splashing money on what I want when people are telling me how much they've found in the street.



Thank you for your help and advice, the car is a BMW E46 M3 Coupe.

:mad::mad::mad::mad:

I hope your next poo is a hedgehog