Loan for a car

DCFC79

rachelonna wrote: »

Or maybe sometimes you need a new holiday just so you can unwind, you put it on a credit card, then come up with a solid plan to repay it within the interest free period?

Or your old car just gave up, and now you need to replace it so you can get to work, so you go and take a loan out and repay it asap before the loan term?

Debt is not perfect, but it is handy for big purchase items, and if used sensibly, there is nothing wrong with it

Im currently saving for a holiday and always have done, same for anything that needs to be done for the car. Id never use a credit card to pay for a holiday, i may use it when im over there.

As for a loan if my current car died then id look at all the options from borrowing from family to gettng a loan or an interest free card.

BugsyBrowne

DCFC79 wrote: »

Im currently saving for a holiday and always have done, same for anything that needs to be done for the car. Id never use a credit card to pay for a holiday, i may use it when im over there.

As for a loan if my current car died then id look at all the options from borrowing from family to gettng a loan or an interest free card.

DCFC do you own a credit card?

Apples2

BugsyBrowne wrote: »

DCFC do you own a credit card?

Take a wild stab in the dark Bugsy.....
Here's a little clue

i may use it when im over there.

BugsyBrowne

Apples2 wrote: »

If you think that is what happens, you too, are living in a dreamworld.

People pay for Holidays via Loans and Credit Cards because they don't have a spare £200 a Month to save for it, consequently they don't have £200 a Month to throw at their credit card when they return.

They end up making minimum payments over 3-4 years for that Holiday and pay off a whole heap of Interest along the way.

Why are you derailing Beegs post anyway? It was a sensible question from a young lad with a sensible view of a new car price.
Beeg isn't to know all the intricacies of finance/credit files so warning him of the pitfalls is a wise move from the board.

Apples your wrong, how DO YOU KNOW someone is going to end up paying just the minimum Payment if they pay for a holiday on a credit card, you don't your guessing that's what your doing you see people day in day out on this forum with most of them spending money they don't have and looking for an easy way out for this reason your judging everyone the same.

BugsyBrowne

Apples2 wrote: »

Take a wild stab in the dark Bugsy.....
Here's a little clue

yeah I spotted that after I wrote the post.

DCFC79

BugsyBrowne wrote: »

DCFC do you own a credit card?

Yes i do but its a crappy rate and i rarely use it

rachelonna

DCFC79 wrote: »

Im currently saving for a holiday and always have done, same for anything that needs to be done for the car. Id never use a credit card to pay for a holiday, i may use it when im over there.

As for a loan if my current car died then id look at all the options from borrowing from family to gettng a loan or an interest free card.

I also have a contribution to my savings each month for my annual holiday. However, paying on a credit card offers you extra protection if you pay a deposit on the credit card in the case where the airline/hotel goes bust, so there is some merit.

If you use a credit card whilst abroad, you get charged extra fees for foreign transactions, so that's a personal choice, depending on your personal circumstances/preferences.

I would never borrow from family members personally - it gets messy really easy. I would do it using an interest free cards, but not all people have the option of having a big enough credit limit in order to do so. I noticed whilst researching finance for a new Hybrid car yesterday that many of the finance deals on offer offered competitive APR, so that's certainly something I may consider when we are ready to buy our next car, since our current car is currently not very well or green.

BugsyBrowne

Agree rachel, like I say I use my card for cashback etc and it really works for me, Unfortuantly many long term members on here are giving answers with quite a few ruff raff on here and they tend to mix everyone with the same brush.

pvt

What am I missing here? Who posted anything on this thread about not using credit cards. I certainly do. And all of mine are cashback cards, and I never pay a single penny in interest because I pay them off in full every month.

And why can I do that? It would be because I never spend money I don't have. I only use my credit card when I know I can afford whatever I'm buying.

Apples sums it up eloquently by pointing out that if you can't afford to save for a new car, new kitchen, or new pair of tits, then what miracle will enable you to pay off a loan after the event!

This thread was not about using credit cards, it was about borrowing money. There's a world of difference to me, but perhaps not to you Bugsy.

And I hope you can see from a number of responses on this thread alone, that I am far from in a minority in thinking it's not alright to buy things you can't yet afford.

I have a good cushion of savings, no debt, and can afford most of what I want, and certainly everything I need. Now !!!!!! add 2 and 2 together and work out why I might be in that position, and why I'm on this forum challenging the pillocks who keep telling posters it's a really OK to borrow money for everything and live in a world of financial catch-up.

I've finished with this soap box now - does anybopdy else need it?

YorkshireBoy

pvt wrote: »

Apples sums it up eloquently by pointing out that if you can't afford to save for a new car, new kitchen, or new pair of tits, then what miracle will enable you to pay off a loan after the event

The "miracle" of the recent promotion/pay rise and/or final payment just made on the last finance taken out...that so many of the OPs seem to make fit to their arguments.

There's always a choice...build a savings cushion, or get into debt (but just a little bit more this time) all over again.