Loan advice for new motor for newbie...

youngbuck88

honey10 wrote: »

It sounds as though you are set on the loan, so my advice would be to have a look on money supermarket to see the deals compared, then speak to your bank and see what they say. I would also do a budget to check you do have left over what you think you should each month.

Haha, well I'm one of those people, once I get something in my head I evaluate it and research. Thats why i'm here basically.

Mainly, because I've never taken a loan out before and I wanted to make sure that it's not a do and die scenario.

I will take whats been said on board though and it's definitely made me give it another 'mull over'.

Like I say, I wouldn't be spending the hypothetical 7k on a car outright, it just basically helps me to have the right money for a good one thats gonna last me a long time, and then ensures I'm in no rush to get rid of my current car.
I think when you say to a buyer " in no rush to sell " it gives them the confidence that you're not getting shot before it blows up again and allows you to hold out for a price you want.

Like I say, with the left over money, and whatever i get off my current motor, that would be used to pay off my credit card outright, minimizing at least the monthly payment and give my GF some money back that she helped me out with.

For the sake of the thread, imagine I DO go ahead with one, are the rates good enough.... would now be the time do do it ?

youngbuck88

londonTiger wrote: »

you can buy good family cars for 2K.

I understand parents are overprotective over children when it comes to cars. But this whole NCAP mallarky is a just silly. The best defence is to drive safely and not take any undue risk. Not be overcly concerned if you get a HGV drive straight into the side of you whether you will survive the blow or not.

If you want a big car just get a 6 seater like a zafira or something. Leave the back seats empty - there should be plenty of space there to buffer any shocks and protect your child.

At your income and your outgoings, I dont think you'll live comfortably with a 6grand loan payment.

Thanks for the advice. Even on for instance 23 k a year? I'm basically pro-rata at the minute, going full time and into network management. So my pay will shoot up. I just don't want to over guesstimate it. Which is why I suggested around 18-20k minimum.

I mean- Lloyds seemed fairly confident in me, does this mean I have a good credit rating ?



I think i may wait to see what my contract is offering then re consider this.

lindens

Not the exact question but - you live at home with your parents and your GF is moving in and then you'll have a baby?

Personally I would be looking to move out into my own place asap not be buying new motors. Speaking from someone who has done the above - all of us living in one bedroom of the parents house for 18 months. Cars were bottom of the agenda.

youngbuck88

lindens wrote: »

Not the exact question but - you live at home with your parents and your GF is moving in and then you'll have a baby?

Personally I would be looking to move out into my own place asap not be buying new motors. Speaking from someone who has done the above - all of us living in one bedroom of the parents house for 18 months. Cars were bottom of the agenda.

Your point is valid defo, but it's a strange one at the min. I pay mortgage here. As Mum's out of work. When she gets back in, she will be probably looking to get a smaller place for herself.

londonTiger

youngbuck88 wrote: »

Thanks for the advice. Even on for instance 23 k a year? I'm basically pro-rata at the minute, going full time and into network management. So my pay will shoot up. I just don't want to over guesstimate it. Which is why I suggested around 18-20k minimum.

I mean- Lloyds seemed fairly confident in me, does this mean I have a good credit rating ?

I think i may wait to see what my contract is offering then re consider this.

23K a year is Ok if you're outside of London. In London 23K is what you'd call "slumming it" territory. Either you live somewhere in zone4+ and spend 1.5 hrs a day commuting to work. Or you live in zone 2 and live in a single bedroom that used to be a double before the slumlord halved it to make more money.

But you're not on 23K yet. get on 23K first and then consdier upgrading yuor motor. Your childcare costs will gobble up your modest salary quick.

youngbuck88

londonTiger wrote: »

23K a year is Ok if you're outside of London. In London 23K is what you'd call "slumming it" territory. Either you live somewhere in zone4+ and spend 1.5 hrs a day commuting to work. Or you live in zone 2 and live in a single bedroom that used to be a double before the slumlord halved it to make more money.

But you're not on 23K yet. get on 23K first and then consdier upgrading yuor motor. Your childcare costs will gobble up your modest salary quick.

Yeah I think this is what i may do. Wait to see my contract first and then sort it out. I'm outside of London yes. Midlands. Work is a short distance away.

longtermplanner

youngbuck88 wrote: »

Part of it aswell is a treat for myself.

ah. I know it's hard, having grown up in a society that thinks cars are great, grown up, manly etc. But over the years you will save yourself a fortune if you can learn to think of a car a a means of transport, not a source of pride or enjoyment. 5k for someone in your situation is a fortune to spend on something that will quickly lose its value. By taking out a loan for this, you are limiting what else you and yopur new family can do. Think again...

youngbuck88

londonTiger wrote: »

23K a year is Ok if you're outside of London. In London 23K is what you'd call "slumming it" territory. Either you live somewhere in zone4+ and spend 1.5 hrs a day commuting to work. Or you live in zone 2 and live in a single bedroom that used to be a double before the slumlord halved it to make more money.

But you're not on 23K yet. get on 23K first and then consdier upgrading yuor motor. Your childcare costs will gobble up your modest salary quick.

We wont have to pay childcare. Misses works in a Nursery that has a baby facility upstairs. We're lucky.

ViolaLass

I'm a bit concerned that the loan started out as being 'for a 'new' car' (that you arguably don't need, as other posters have pointed out)...

...then to pay off your 0% CC (financially an odd decision there - it won't save you the monthly payment as that will have to go to the loan instead AND you'll be charged interest)...

...then to pay your gf back (is she charging you interest? Aren't your finances joint anyway?)...

...then for a treat for you.

What next? A holiday?

BillJones

youngbuck88 wrote: »

Thanks for the advice. Even on for instance 23 k a year?

No-one can say for sure, but you are going to have a new child, and that's a wage below the median household income, so please do be careful about taking on too many obligations now before you know how expensive day-to-day life is with a new baby.