What's the best way to get £8000 loan?

scholesfan88

heartbreak_star wrote: »

I didn't particularly want a banger either, but it's what I could afford so it's what I bought.

Then I started saving hard and now have a slightly newer car that runs better. It still only cost me £1200.

£5k on a car is excessive, and £3k on a holiday even more so.

Post up an SOA on the Debt-Free Wannabee board and see if the nice peeps on there can help you save up.

HBS x

5k for a car is expensive? What planet are you living on...

Coopdivi

Read the quote again, scholesfan. It says 'excessive' not 'expensive'.

scholesfan88

Coopdivi wrote: »

Read the quote again, scholesfan. It says 'excessive' not 'expensive'.

Same thing

Apples2

scholesfan88 wrote: »

Same thing

£5k on a car is both excessive and expensive if you don't have £5k spare. How could it be anything else if you have to borrow money to be able to afford it?

scholesfan88

Apples2 wrote: »

£5k on a car is both excessive and expensive if you don't have £5k spare. How could it be anything else if you have to borrow money to be able to afford it?

Will if you sat inside every car dealer for a day and checked wether the cars being purchased were being paid by finance or by cash you'd find the majority were by finance.

sharp82

scholesfan88 wrote: »

Will if you sat inside every car dealer for a day and checked wether the cars being purchased were being paid by finance or by cash you'd find the majority were by finance.

Not really the point though is it? If you dont have £5k, then you cant afford a £5k car

John1993_2

sharp82 wrote: »

Not really the point though is it? If you dont have £5k, then you cant afford a £5k car

I think that this is just a case where "afford" means different things to different people. I'd view "affrd" as meaning "can be bought out of spare cash", whereas to others it means "can find a way to make the payments if I finance it over a long enough term".

Taking my view, I've spent years not having quite as nice a car as I could otherwise have had, but it means that I've not paid away anything in interest payments, either. I've also been able to get some quite serious discounts, even when buying new (30% off list on the last car), which has allowed me to drive some very nice things and suffer not too much depreciation.

BeenThroughItAll

scholesfan88 wrote: »

Same thing

No, it isn't. They're different words with different meanings.

Excessive means 'more than necessary'

Expensive means 'costing a lot'

So a Land Rover Defender at 20K can be expensive, but not excessive if you're a farmer who needs a Defender.

Equally, a 5K Focus could be deemed to be not expensive, but would still probably be excessive if you only go to the shop 1 mile away twice a week by yourself.

Whilst I take your point that 5K is *not* a lot for a car these days, it would IMHO still be excessive if one doesn't need to spend 5K.

Idiophreak

jonlb72 wrote: »

Just another quick question to anyone reading this. What in your mind is considered normal or ok to get a loan for? When is it justified? Or should we stay well away from borrowing money at all costs? I thought it was the norm for people to get a loan to purchase something like a new car. I don't think many of us have 5k or more saved up for a rainy day. I do have savings but that's to pay the mortage off one day.

I'd get a loan for anything, as long as it made financial sense and I was sure I could keep up the repayments. I've had loans for uni, cars, holidays, wedding, laptops, new bikes, furniture, moving costs...you name it. 90% of the money I've ever borrowed has been at 0%, however, and the eased cashflow has been worth transfer fees etc. I've never paid more than 7% on a loan, except on the odd occasion I've been away and missed CC payments.

That said, your post doesn't really add up. You mention that you haven't saved 5k for a rainy day..well this isn't a rainy day...it shouldn't come as a shock to you that you need a new car now and you should have been saving for it for years. Rainy day savings are for when the worst happens, not for when something completely expected happens.

FWIW, if you have the money in savings - spend it.

You *will* pay more interest on a loan than you're getting on your savings, so it's really not worth going to the hassle of getting the loan if you have money sat there. You can just start saving hard to top your mortgage money back up ASAP.

sharp82 wrote: »

Not really the point though is it? If you dont have £5k, then you cant afford a £5k car

Oh nonsense...Plenty of people don't have 5k sat in the bank, or 5k they want to spend...but could easily "afford" the repayments...Out of interest, do you feel that anyone with a mortgage can't afford their house?

sharp82

Idiophreak wrote: »

Oh nonsense...Plenty of people don't have 5k sat in the bank, or 5k they want to spend...but could easily "afford" the repayments...Out of interest, do you feel that anyone with a mortgage can't afford their house?

Not really nonsense. If the rest of the world thought this way we would have not been in the pickle that 2007 brought.

I'm not against loans at all. I'm just against loans for things which are 'nice to have' flashy cars and expensive holidays.

Comparing mortgages and loans is nonsense. Mortgages are seen as an investment. Generally once you've finished paying for your home, its worth more than when you started. The same can't be said for 90% of cars.