Are car loans bad news for a 19 year old?

retepetsir

Save £500 per month and you can buy one in 10 months when they're cheaper (winter), or have I missed something?

Grimezy

retepetsir wrote: »

Save £500 per month and you can buy one in 10 months when they're cheaper (winter), or have I missed something?

Nope you've pretty much hit the nail on the head, as long as my Punto lasts till then!

And thanks Brock

katebl

Hi OP, just a thought - I agree that you should save as much as you could but if I were you I'd consider getting a credit card - even if you only get a 1k limit and still save the full amount for your car, use that card as part payment (and pay it off ASAP to avoid interest!). Buying a car on a credit card gives you another option should anything go wrong with the car - you then have some comeback with the card issuer - assuming you're looking at independent dealers

Sorry if it's not very well explained but basicallly spend over £100 on your card even in part payment for something and you get greater consumer protection, as I've found out before when buying a car can really come in handy

eschaton

Not one to normally recommend loans when young, but as others have picked up on, you don't come across as one of the usual irresponsible clowns that pop up on here.

I also see a bit of myself in your plans.

Close on 19 years ago, I had started working full time in retail management and was also 19. My existing car was one of the most boring possible (a Renault 9) and had been written off but I was able to get it repaired for more or less it's pre-accident value. I got it repaired as it was reasonably reliable.

I wanted a new car as I knew it would be reliable and it also came with free insurance which helped as I only had 1 years NCD, an accident claim and a CD30 conviction.

I bought a new car for just under £6,200 and put down a £2k deposit. Didn't regret it at all - but done the same thing 12 months later, then the same again another 12 months later

If you can put a reasonable deposit down (30% or more) then I don't see a problem with your plans.

Grimezy

eschaton wrote: »

Not one to normally recommend loans when young, but as others have picked up on, you don't come across as one of the usual irresponsible clowns that pop up on here.

I also see a bit of myself in your plans.

Close on 19 years ago, I had started working full time in retail management and was also 19. My existing car was one of the most boring possible (a Renault 9) and had been written off but I was able to get it repaired for more or less it's pre-accident value. I got it repaired as it was reasonably reliable.

I wanted a new car as I knew it would be reliable and it also came with free insurance which helped as I only had 1 years NCD, an accident claim and a CD30 conviction.

I bought a new car for just under £6,200 and put down a £2k deposit. Didn't regret it at all - but done the same thing 12 months later, then the same again another 12 months later

If you can put a reasonable deposit down (30% or more) then I don't see a problem with your plans.

Thanks for your advice I definitely am considering a part loan that would tie in with my insurance renewal in July. If I calculate correctly, I could potentially have £3000 thereabouts by my renewal date. I might even find a cheaper car that I prefer by then! Or it would help as a cheeky deposit on something smarter. I'm sure they'd give me close to £500 for my Punto as well as a part-ex.

I'm lucky to have stayed accident free so far! (touch wood.) If I had an accident I'd no doubt end up paying £4000-£5000 a year on my insurance -.- I don't know how the companies get away with charging so much!

chris-j

Unless you can get interest free monthly payments on insurance, if you can afford insurance from savings I would pay this and then re-fund the savings with what your monthly payment would be, that way instead of paying the insurance company a 10% premium you can effectively get yourself 10% on your savings compared to what you would have had. If you can discipline yourself to save the amount each month, at end of year you will have 10% more money + the interest on the account.

Bravehearted_2

Your story is no different to the x others who want a loan for a car (which in my book is not a bad thing) except that these particular posters usually can't afford it. But they think they easily can.