Loan trouble!

BoGoF

jonny14391 wrote: »

over 5 years the monthly payments are more than managable though but i suppose its alot the other option would be to buy the car on finance and get a seperate loan for £4000 for insurance for a few years

No lender will give you a loan for more than 100% of your income.....or even 75%. Stop dreaming and start saving.

Tixy

Definitely don't let gran take out a loan in your name. Do not go down that route. What if you lost your job and couldn't afford repayments? it would be totally unfair on her.

You won't get a loan for anything like that amount on your income. I'd doubt you'd be able to borrow anymore than £2k max and likely only at a higher rate than the advertised 'representative' rates. Talk to your bank - see what they think based on your finances.

How much did you work out you could afford for repayments? start saving that now towards your car/insurance. If you really need a car look for a cheap car (£1k or less) and do research into how cheap you can find your insurance, you could also consider paying for your insurance over a year (the APR might be more than a loan's representative rate, but you'll only be borrowing it over 1year so probably won't be anymore expensive).
If a car isn't essential (and as you are already working without one presumably its not - then better still save up for a year or so and buy one outright.

meer53

jonny14391 wrote: »

over 5 years the monthly payments are more than managable though but i suppose its alot the other option would be to buy the car on finance and get a seperate loan for £4000 for insurance for a few years

The monthly repayments may be affordable but you won't get a loan for that amount, or £4000 either, or buy a car on finance. You've been rejected twice, doesn't that tell you something ? Listen to what people are saying.

jonny14391

Ok ok people thanks for your fast replys and advice will have to work something else out

RichGold

You'll be very very lucky to borrow anything like what you're asking for.

You'll have to revise your plans down while you are on a low wage.
Whatever you do, don't get your Gran to take out the loan for you, although depending on what her income is, she would likely as not have no chance either.

Bravehearted is right, there are many good cars to be had for under a grand, I had many at a lot less than that when I was your age.

jonny14391

Then loan would be joint between her and my grandad, and my job is secure and i have a good relationship with my grandparents a fallout is not going to happen

Errata

jonny14391 wrote: »

Then loan would be joint between her and my grandad, and my job is secure and i have a good relationship with my grandparents a fallout is not going to happen

Jesus wept! NO job is secure, and your grandparents won't be thrilled when the bailiffs turn up and remove their telly, microwave, car and anything else they can lay their hands on.
I sincerely hope your grandad has more sense than you appear to have. And start standing on your own two feet.

dealer_wins

Whatever you do, do NOT let your grandparents take out this loan for you.

If (Probably when) you cant afford it due to <losing job, illness, needing money for rent, holiday, emergency, new girlfriend etc etc etc> then your grandparents will be in the $h1t.

RichGold

jonny14391 wrote: »

Then loan would be joint between her and my grandad, and my job is secure and i have a good relationship with my grandparents a fallout is not going to happen

You aren't listening are you?

Don't drag your grandparents into your financial downward spiral. On £500 a month you cant afford to repay them and live as well. Trust me, I was your age once, not so long ago, and I got by quite happily until I could afford better on things like this
http://www.ebay.co.uk/sch/Cars-/9801/i.html?LH_PrefLoc=0&LH_BIN=1&_dmpt=Automobiles_UK&_fln=1&_ssov=1&_trksid=p3286.c0.m1539&_mPrRngCbx=1&_udlo=&_udhi=800

WhiteHorse

jonny14391 wrote: »

Then loan would be joint between her and my grandad ...

Oh, so two old people will be in debt because of you?

...and my job is secure ...

No, it isn't.

... and i have a good relationship with my grandparents a fallout is not going to happen

You cannot predict the future.