Bank loan at 18?

TheMoney

If possible don't pay your insurance monthly, my insurance cost me £4300 for the year, but would have been close to £1000 a month if I didn't pay in full. As much as you work out your finances to make sure you can afford it, you never know what will happen...but I'm not saying don't do it. I would say you're better looking for HP from a dealer, you would almost certainly get a lower APR as it's secured on the car, and you also have the option of VT if you are really struggling to afford it further down the line. Any car you buy, no matter how many miles or it's age can, and probably will have problems. I'd recommend looking at Ford's, relatively cheap to buy, low insurance, low tax, and if you do have problems with it they're generally pretty cheap to fix.

forgotmyname

27col wrote: »

The idea of paying your insurance via a long term loan is absolutely ridiculous.
Selling the car and expecting the proceeds to cover the outstanding loan is also fanciful to say the least. especially as part of the loan will be for the insurance, and the car will likely have depreciated in the mean time. What you are proposing is a recipe for disaster. Natnay and others are giving good advice, I suggest that you take it. High mileage does not necessarily equate to a banger. It is all about the quality and records of servicing.

Exactly what i thought when i read the 1st post.

Insecure job also.

You will be in year 3 or 4 of ownership before the car is worth more than you owe. Selling the car to pay off the finance any earlier will leave you with a huge bill and possibly onto the road of debt collectors hassling you. Dont do it.

If you have £3000 saved then find out what the insurance is and buy something with the rest.

I bought a new car once, I lost £6400 in 5 years of ownership. Since then i have bought high mileage cars around 5 years old for £2000/£2500 or so.

Ive had my current car since 2009 and it's now pushing 170,000 miles. I may look for another one next year.
Its not clapped out. Just think its time for another one. Will it be another Mondeo? Probably...

CKhalvashi

iancrt wrote: »

Ill be impressed if you get insurance for £1000. My 18 yr old son was quoted £8000 for his at 18 - in a little old group 4 car!

Peugeot 406, Mercedes CL420 (with Swedish license), Volvo 760, Skoda Octavia.

None of which are 'cool', but I've owned a 406 and my OH an Octavia, and they were both practical, usable cars. All four can be had for less than £1000, and Peugeot's 2.0 HDi engine, and Skoda's 1.9 TDi are indestructible!

Before I'm told 'the insurance group is too high', think about how many of the above you hear 18 year olds wrapping round trees, compared to Corsa, Fiesta, 206 etc. This is why the insurance is cheaper, and unless you're in a city, I'd be surprised if it went over the £2k mark.

CK

bigadaj

CKhalvashi wrote: »

Peugeot 406, Mercedes CL420 (with Swedish license), Volvo 760, Skoda Octavia.

None of which are 'cool', but I've owned a 406 and my OH an Octavia, and they were both practical, usable cars. All four can be had for less than £1000, and Peugeot's 2.0 HDi engine, and Skoda's 1.9 TDi are indestructible!

Before I'm told 'the insurance group is too high', think about how many of the above you hear 18 year olds wrapping round trees, compared to Corsa, Fiesta, 206 etc. This is why the insurance is cheaper, and unless you're in a city, I'd be surprised if it went over the £2k mark.

CK

Interesting view, my impression is that insurance cost would be relative to engine size and power. Take your proint about super minis but that's surely an indication of their popularity rather than an indication of the frequency of accidents. Relatively speaking.

CKhalvashi

It was cheaper (and we're talking £1000s) for my niece to insure a '53' plate 406 2.0 HDi estate (the one mentioned above), than to insure an '03' 206 1.4 petrol.

I ordered that 406 with the 110, so it's certainly not relative to size/engine.

CK