Am I likely to get car finance/loan?

somethingcorporate

I know a couple of 5-year qualified medics and none of them are on £70k.

The only people I know earning that are lawyers and bankers at <28. The salary for a consultant starts at about £70k so not sure you'd expect to be so senior so quickly before you have actually even started the job and as a matter of course.

Personally, I'd not want to get into so much debt so quickly, you're probably carrying a fair bit from uni anyway so why not try and balance the books so to speak and see how you feel when you have to hand over a massive chunk of hard earned rather than paying for it on the never never.

shonzyd

i would suggest you pay off your existing debts first before even thinking about another loan? presume you will have an extortinate student loan to pay off too?

in terms of a the car, earning 31k i would never enter into a contract to get a 20k car? have you worked out how much you would actually pay off given the interest you will have to pay also?

if you have your heart set out on a particular car, get one a few years old. Or if your a risk taker, go fo it. but i would hate to see another post in a years time stating 'i got a 20k car loan and now ive lost my job and cant make repayments, HELP!!' - because i would expect the responses you would get would be along the lines of 'we told you so'

It will do you no harm to wait until you can afford it, and get something cheap and cheerful in the meantime.

Wobblydeb

I'm guessing you will at least need to be finished your probationary period in your job before getting finance? I am hoping that doctors have probationary periods! :eek:

From the pleasant location of middle age, I can look back now and say you would be an idiot to spend that kind of money on a non-banger. However, I'll admit to spending 50% of my salary on a fancy car in my youth.

With the luxury of hindsight, I wish I'd put the money into an ISA instead. You're only borrowing the money from your future self. You'll have to give up stuff at some point to make those payments.

pheonixrising21

Zach2k wrote: »

I've got a warden position at the uni I am at. Which means I have no rent or bills. My monthly expenses are 300 odd a month total which means after tax I'll have close to 2k spare per month on my starting salary.

Also as mentioned I'd hope to get it over 5 years during which the average salary would be 60-70k. I dont feel a 300-400 monthly payment over that period would wreck my finances.

Do docs get taxed at a lower rate than everyone else? £31k pa is £2583 per month gross! By the time tax, NI and student loan are taken, I'd say about £8k per year will go to HMRC (just income tax will take £4.5k per year). And don't forget your pension too! That will give you around £1900 net, so around £1600 after expenses? Depends on you definition of close... hope you're not going to be a surgeon if you happy with 20% margin of error?

Joking aside, HP or PCP car finance is easier to get than a personal loan as it is secured on the car. It is also usually a lower rate than an equivalent personal loan. Again, this is because it is secured and therefore less risky (they can come and take the car back if you stop paying).

There are currently some good deals around, Toyota offering 0% on most Yaris models, Kia offer 4.9% on almost if not all their entire range. I think all of the VW group (VW, Audi, SEAT and Skoda) are offering 6.9%.

There are many small-medium hatches around for less than £15k. Some of these are really well spec'd (Kia Rio 3 has heated front seats!) and/or pretty powerful (you can probably get a SEAT Ibiza 1.4 TSi 150bhp for around £15k).

If you go on the leasing route, be wary of small print for excess mileage and damage, as they may charge ridiculous amounts (50p per mile) if you go over the limit or £500 for a stone chip repair when you hand it back. Not saying don't do it, just make sure you check the agreement for these costs.

Zach2k

NeverEnough wrote: »

OP, I'm a Consultant not a newly qualified medic and would hesitate to apply for finance for a 20K car..........I have also been made redundant from a senior role in the past and the Trust I currently work for are looking at halving the number of senior posts, so its not a job for life any longer.

I think you may need a longer period of being on a reasonable salary in full time employment before being approved for a loan of more than half your salary as a FY1 doc. Personally, I would not want to loan more than half my salary for a car which will lose value rapidly anyway.

The BMA do have a finance division with car leasing at very good rates to doctors who are members, it may be worth taking a look.

Sorry to hear about losing your job. I'm sure you can still locum at a pretty nice rate though. The reason I am maybe seeming a little reckless to others, is that, push come to shove, there is always that option to locum isnt there?

I mean my friend last year (only 25) took a year out after F2 to locum on A&E and was earning £50 an hour, he totalled over £100k in one year, albeit before tax.

Also to the other poster - it sounds like your friends are following the long route to consultancy. I'm intending to follow the GP route, which is 5 years flat from medschool (there's talk of adding an extra year, not sure if it will actually be implemented).

My 20k estimate actually included the insurance cost which I thought would run into the several thousands. Actually turns out to be no more than 500, maybe because I'm 30 now. So maybe I'll just try for 12-15k, taking that and the advice from posters into consideration.

taylor11_2

I would apply...

I was 20 when I purchased my first brand new car. Was a student and worked part time and was accepted with Volkswagen Financial Services for a car @ £19000 (£5000) deposit.

If you want a new car and you know that you can afford it then buy it.

gb12345

@oncemorewithfeeling13 you seem very keen to tell us all about this wonderful firm, that you have posted the same thing in 3 separate threads. Do you have a vested interest in them?

Zach2k

taylor11 wrote: »

I would apply...

I was 20 when I purchased my first brand new car. Was a student and worked part time and was accepted with Volkswagen Financial Services for a car @ £19000 (£5000) deposit.

If you want a new car and you know that you can afford it then buy it.

Wow, nearly 20k total whilst working part time. Did it wreck your future plans/cause you to have big regrets afterwards?

NeverEnough

somethingcorporate wrote: »

I know a couple of 5-year qualified medics and none of them are on £70k.

The only people I know earning that are lawyers and bankers at <28. The salary for a consultant starts at about £70k so not sure you'd expect to be so senior so quickly before you have actually even started the job and as a matter of course.

Personally, I'd not want to get into so much debt so quickly, you're probably carrying a fair bit from uni anyway so why not try and balance the books so to speak and see how you feel when you have to hand over a massive chunk of hard earned rather than paying for it on the never never.

Quite right, it takes around 10 years to become a Consultant - if you get there in your early to mid thities you are doing well!

The training grades earn quite a lot less of course and the higher tax bracket eventually catches up with you as well as highervpension contributions.

My current CT 1 is driving a fancy new 62 reg car which takes up most of his salary........go figure!

NeverEnough

Zach2k wrote: »

Sorry to hear about losing your job. I'm sure you can still locum at a pretty nice rate though. The reason I am maybe seeming a little reckless to others, is that, push come to shove, there is always that option to locum isnt there?

I mean my friend last year (only 25) took a year out after F2 to locum on A&E and was earning £50 an hour, he totalled over £100k in one year, albeit before tax.

Also to the other poster - it sounds like your friends are following the long route to consultancy. I'm intending to follow the GP route, which is 5 years flat from medschool (there's talk of adding an extra year, not sure if it will actually be implemented).

My 20k estimate actually included the insurance cost which I thought would run into the several thousands. Actually turns out to be no more than 500, maybe because I'm 30 now. So maybe I'll just try for 12-15k, taking that and the advice from posters into consideration.

Locums are great if the work is available- thats what I do now, but its an anxious time when they come to an end and the work dries up, most trusts are struggling moneywise and locum expenses are cut to the minimum they can get away with, so you really need to be at the top of your game to get noticed amongst the hundreds of cvs that go forward for each post these days - i have been very fortunate in this regard.

Don 't overstretch yourself financially so early in your career though - theres enough to worry about with training etc than to stress about huge car loans.

You do need to be fully registered to do locums though, not FY docs, but I guess you know that, and of course the more senior you are the more likely to land a good position. There are good CT locums though, called "locum for service" posts.

Sorry, all a bit off your original topic. My advice still to take care with big car loans, look at a lease if you really want the flash new car, but don 't be tempted to overextend yourself for a few years!