How likely is this?

gizmo111

iolanthe07 wrote: »

Has she factored in the cost of Insurance?

Of course - it is something she has been paying for the past 3 years!

gizmo111

IainHL wrote: »

Irrespective of the relative merits of buying a new or old car, since she seems to be set on getting a loan and buying new, you would need to check and be certain that the overpayments she intends to make are allowed on the loan she actually gets. Not all personal loans/hire purchase loans facilitate such overpayments.

Looking at HSBC where she banks which allows overpayments.

pauletruth wrote: »

15k/2=7,500
she has a credit card of 1500
so 6000 max loan and thats pushing it.
with 3,600 she may get a loan. however has she thought of cheaper makes .

Don't think you get much cheaper than the KA.

AFK_Matrix wrote: »

No as she is dead set on a new car and getting a loan so the point OP made of saying she is good with money seems not true as if she were she wouldn't not want a loan and get a car with the money she has and not pay extra money she doesn't have. Not to mention on a new car she is loosing money when she drives it away. Not very savvy with money at all imo.

I think she is good with money and she has a car at present she wants a new KA!
So presumably everyone who buys a new car is a fianancial wreck then?

gb12345

gizmo111 wrote: »

Of course - it is something she has been paying for the past 3 years!

Has she factored in the insurance on a brand new £9,000 car rather than the £800 one she has at the moment?

She may get a shock.

jellie

gizmo111 wrote: »

Looking at HSBC where she banks which allows overpayments.



Don't think you get much cheaper than the KA.



I think she is good with money and she has a car at present she wants a new KA!
So presumably everyone who buys a new car is a fianancial wreck then?

Peugeot 107 starts at just over £7k. I had one for nearly 4 years from brand new - very nippy, cheap insurance and excellent mpg.

Has your daughter thought about when she might want leave home and get her own place? If she has this loan hanging round her neck, she won't be able to save for a deposit (rent or purchase) for years.

gizmo111

jellie wrote: »

Peugeot 107 starts at just over £7k. I had one for nearly 4 years from brand new - very nippy, cheap insurance and excellent mpg.

Has your daughter thought about when she might want leave home and get her own place? If she has this loan hanging round her neck, she won't be able to save for a deposit (rent or purchase) for years.

The loan will last max 18 months - she only wants it over 2 years before you count the overpayments. It'll hardly take years to save up for a deposit on a flat if she wants one after phone & rent she'll have around £500 per month to spend/save on car.

She has no plans to leave home until she has finished her training which takes her up to 23, by which time she will be on a far higher salary.

Insurance is about £65 per year cheaper than what she is paying now.

19lottie82

gb12345 wrote: »

Has she factored in the insurance on a brand new £9,000 car rather than the £800 one she has at the moment?

She may get a shock.

prob wont be that much difference tbh, in my experience.

Denning.

gizmo111 wrote: »

So presumably everyone who buys a new car is a fianancial wreck then?

No, the fact you even posed the question is alarming.

gizmo111

Denning. wrote: »

No, the fact you even posed the question is alarming.

It was a dry comment based on the posters analysis of how stupid buying a new car is.

AFK_Matrix

gizmo111 wrote: »

It was a dry comment based on the posters analysis of how stupid buying a new car is.

Where exactly did I say I think everyone who buys a new car is a financial wreck?

I was commenting on the situation you have presented. Which is someone young on a low wage wanting to saddle themselves with a loan and loose money on a new car! And the point being is they don't need to! That's what is crazy imo.

If she was sensible then she would buy a car that's within her means with the cash she has and you can get a perfectly fine car for 3k. This is after all a money saving forum so I am suggesting she saves a packet by avoiding the loan and a new car.

Horseygirl123

OP - I have two daughters and they are both very headstrong and when they wanted newish cars nothing we could say would change their minds. My youngest daughter laughed her head off when I suggested she look at my sister's Ford Ka which she was selling and said she wouldn't be seen dead in it:o

Anyway she bought a four-year old Corsa when she was 18 and it was nothing but trouble. When she decided last year to buy a newer car costing £8000 I thought she was mad but when I realised how much she had spent on trying to keep the old car on the road each year I understood how she felt.

Her salary is £18,000, she already had a loan with an Orthodontist of £3000, and a credit card bill of £1500. She banks with the HSBC and they did give her a loan for £8000. She sold her old car which paid off the credit card bill.

She is actually very sensible and has no problem in making the repayments. If she was to be made redundant (unlikely) she would get enough to pay her loan off.

I was surprised she got the loan and I suppose you're only young once so why not have what you want if you can afford it.

Interestingly, the new car was cheaper to insure