Car loan advice needed

moordown66

Hello, this is my first ever post. Wondered if someone could give me a bit of advice as I’m thinking myself round in circles at the moment.

My car is getting on a bit and has reached the point where everything is starting to fail. I’ve spent far too much on it over the last 9 months and am now at the point where I’m convinced that I’m throwing good money after bad.

I want to get a loan of about £6000 to fund a new car but am currently working on a contract basis – 6 months left. It may get renewed, it may not so I’m banking savings to ensure I have a safety net if I don’t find something else quickly. Nothing – nothing is going to convince me to do otherwise on that front!

On that basis, I don’t think I can get a ‘normal’ loan or finance deal as I can’t guarantee in 6 months time that I’d be able to pay it and could find myself in difficulty. Is that assumption correct?

A thought I had was taking a 12 month mortgage holiday (I’m entitled to do that apparently) and getting a loan using what I’d have spent on the mortgage instead. Should be able to clear £6k-ish in one year very easily, even if my contract doesn’t get renewed. Is that a good idea or am I failing to notice something obvious that would make me slap myself on the forehead?

Or is there something out there I know nothing about which would be ideal?

Fairway871

moordown66 wrote: »

Hello, this is my first ever post. Wondered if someone could give me a bit of advice as I’m thinking myself round in circles at the moment.

My car is getting on a bit and has reached the point where everything is starting to fail. I’ve spent far too much on it over the last 9 months and am now at the point where I’m convinced that I’m throwing good money after bad.

I want to get a loan of about £6000 to fund a new car but am currently working on a contract basis – 6 months left. It may get renewed, it may not so I’m banking savings to ensure I have a safety net if I don’t find something else quickly. Nothing – nothing is going to convince me to do otherwise on that front!

On that basis, I don’t think I can get a ‘normal’ loan or finance deal as I can’t guarantee in 6 months time that I’d be able to pay it and could find myself in difficulty. Is that assumption correct?

A thought I had was taking a 12 month mortgage holiday (I’m entitled to do that apparently) and getting a loan using what I’d have spent on the mortgage instead. Should be able to clear £6k-ish in one year very easily, even if my contract doesn’t get renewed. Is that a good idea or am I failing to notice something obvious that would make me slap myself on the forehead?

Or is there something out there I know nothing about which would be ideal?

Have you tried talking to your current bank, mate? or maybe even your current mortgage lender if you are entitled to a payment holiday

CLAPTON

have you checked with the mortgage company about a payment holiday?

if you can how much will that 'save' each month with the payment holiday?

how much savings do you have?

eschaton

moordown66 wrote: »

Hello, this is my first ever post. Wondered if someone could give me a bit of advice as I’m thinking myself round in circles at the moment.

My car is getting on a bit and has reached the point where everything is starting to fail. I’ve spent far too much on it over the last 9 months and am now at the point where I’m convinced that I’m throwing good money after bad.

I want to get a loan of about £6000 to fund a new car but am currently working on a contract basis – 6 months left. It may get renewed, it may not so I’m banking savings to ensure I have a safety net if I don’t find something else quickly. Nothing – nothing is going to convince me to do otherwise on that front!

On that basis, I don’t think I can get a ‘normal’ loan or finance deal as I can’t guarantee in 6 months time that I’d be able to pay it and could find myself in difficulty. Is that assumption correct?

A thought I had was taking a 12 month mortgage holiday (I’m entitled to do that apparently) and getting a loan using what I’d have spent on the mortgage instead. Should be able to clear £6k-ish in one year very easily, even if my contract doesn’t get renewed. Is that a good idea or am I failing to notice something obvious that would make me slap myself on the forehead?

Or is there something out there I know nothing about which would be ideal?

Reality here.

To borrow £6k for a car when you might be unemployed in 6 months is crazy.

I wouldn't borrow £6k and I don't expect to be unemployed in 6 months time.

Bear in mind a new car will depreciate so you will just be losing depreciation instead of repair bills.

If you have already spent a lot of your existing car, maybe there isn't much left to go wrong?

If you do get a new car, try a cheaper one unless you can live with the fact that your actions could leave you with serious financial problems in the future.

chalkie99

Holiday - A happy time when you take a break from the years hard work to relax and enjoy yourself.

Payment Holiday A misleading term coined by lenders to fool you into thinking it is a good thing rather than something which is actually going to make them more money.

Remember, there is no such thing as "A Free Lunch". you will pay for this in other ways. Lenders are not there to help you, they are businesses which aim to maximise their profits.

There is an article here http://www.money.co.uk/article/1003348-how-to-take-a-mortgage-payment-holiday.htm

which might be worth a read for you.

Ilona

I was in a similar situation a few years ago. I have never had a loan for a car in my life. always saved up for it. I needed to change my old banger and couldn't save enough for something decent so I remortgaged and took a lump sum to get a car. I have never ever missed a mortgage payment, so even with a slightly higher monthly payment it was always going to get paid. I owe very little on my mortgage now so my repayments are very low. Now I put money aside for when I need to change my car.
Ilona