Looking for £7,000 loan.

Tixy

YorkshireBoy wrote: »

Savings interest rates are currently 2.4%ish after tax.

With each birthday may come a 5% reduction in premium.

Insurance costs, particularly for youngsters, are probably rising at 20-30%.

Better to get on the 'insurance ladder' sooner rather than later in my opinion.

But also
Borrowing for insurance on a say 3year loan at maybe 15%
If insurance is say £1800, actual cost to the OP = £2246.
Or at 20% APR it would be £2408.

If they have to keep borrowing each year for their insurane (because they can't afford to save up for it as they've saddled themselves with this loan, and all the running costs of a car etc) thats going to mount up in extra cost.

(Not that I think they stand any chance of getting such a loan).

Miss_Spendalot_2

YorkshireBoy wrote: »

Better to get on the 'insurance ladder' sooner rather than later in my opinion.

I do agree, but at what cost? OP would still be better off saving up as much as they can towards the costs, otherwise they are always going to be trying to catch up financially. And each year is only going to get harder.

If OP loans everything to pay up front then has to not only pay the debt out of his income but MOT, Tax, Servicing, Petrol, living expenses etc where is he going to find the money to pay off the loan? before long a year has gone by and he will be back to square one again only more in debt then he is today.

So yes YorkshireBoy I quite agree but in this circumstance I do not see what OP will gain from it, other then scratching an itch to get a car and a whole lot of trouble to go with it..

Still OP I do feel for you, we have all been there before so I am definitely not trying to patronise you in any way...

JoshBee25

No, 3000 for a car 1800 insurance as I'd be going under my dads name as old policy cost me £2800. I owe £200 little woods £400 credit card £790 to pay for my holiday.

With monthly bills I'd pay 500 a month including all bills, taking the loan into account I live withy my dad so don't pay rent....

I'd probably bank £600 a month which would also mean saving up around £100 a month which would cover my deposit for next years policy an give me a lump some for a holiday, but with prices of insurance paying £250 a month to insure a £500 car isn't worth it if I get a loan I can tick all the boxes & get a car to keep for years to come still leaving me with £600 a month+ to my self.

So don't come onto this thread basically callin me stupid, I've put a lot f thought into it serious advice only please.

KingElvis

Josh, this is all well and fine but you stand 0.0% chance of getting this loan...and there's only a 50% chance of that.

The current lending market makes your dreams about as relaistic as a squirrel on a tractor.

Sorry.

jee

Nobody has called you stupid. Everyone on this thread has just said that you really won't get, and shouldn't even think about a loan.
Can you go for monthly payments on your insurance?

Miss_Spendalot_2

JoshBee25 wrote: »

No, 3000 for a car 1800 insurance as I'd be going under my dads name as old policy cost me £2800. I owe £200 little woods £400 credit card £790 to pay for my holiday.

With monthly bills I'd pay 500 a month including all bills, taking the loan into account I live withy my dad so don't pay rent....

I'd probably bank £600 a month which would also mean saving up around £100 a month which would cover my deposit for next years policy an give me a lump some for a holiday, but with prices of insurance paying £250 a month to insure a £500 car isn't worth it if I get a loan I can tick all the boxes & get a car to keep for years to come still leaving me with £600 a month+ to my self.

So don't come onto this thread basically callin me stupid, I've put a lot f thought into it serious advice only please.

Personally I do not see anybody coming here telling you that you are stupid, just trying to give you advice. It might be me but your maths do not add up to what you say you earn ? EDIT: Oh yesI see you will Pay £500 plus an extra £100 on top of that to save for next years tax and then you will have over £600 to do with as you please, I get it now...

JoshBee25

jee wrote: »

Nobody has called you stupid. Everyone on this thread has just said that you really won't get, and shouldn't even think about a loan.
Can you go for monthly payments on your insurance?

Yes I can but they're stupid

I payed £500 for a car cost me £400 to pass its not £2800 to insure so in 12 months that cost me £3,700 not forgetting the car I originally took out the policy on cost me £350.

~Brock~

JoshBee25 wrote: »

No, 3000 for a car 1800 insurance as I'd be going under my dads name as old policy cost me £2800.

Do you realise that doing it this way is fraudulent and could get you into big trouble if you should even need to make a claim?

Apples2

KingElvis wrote: »

The current lending market makes your dreams about as relaistic as a squirrel on a tractor.

Emmzi

if you have so much spare cash, why do you have £200 on a clubby book and £400 on a credit card?

It's a reasonable question and indicates you are living beyond your means already.