PhD Student Trying to Buy a car

mustang121

waterswims wrote: »

I will not be using it for day to day commute, maybe a shopping once a week, visiting my grandparents (~20 miles each way) once a fortnight and maybe once every 3 or 4 weeks a longer journey to cities further away.

The advice I am after is more to do with loans though, not a car recommendation. Does my status as a student and the fact that my income is not a salary paid by an employer but instead a grant from the Research Council effect my chances of securing a loan/car finance/HP/PCP/whatever? And if so, to what degree?

I think your chances would be low. Would you loan a lot of money to somebody who didn't have a fixed salary? How would they pay the money back? What's the chances your research grant might be cancelled?

I would imagine your Research Council would be pretty peeved if they discovered you were being reckless with their funding on something so vain as a car finance, which they gave to you to help with your studies.

waterswims

Who knows, how do you know you can afford the repayments when you don't know what the repayments would be?

That's why I am asking advice on a website called "Money Saving EXPERT", because I don't know how these things work internally and have had no experience in them.

I know I can afford the repayments because I can look at the advertised personal loan from HSBC and see the repayments and then also work out the repayments if the APR is double or triple the advertised one. I am not looking for a loan that would stretch my monthly budget to the limit, just enough to do what I want with it.

waterswims

I think your chances would be low. Would you loan a lot of money to somebody who didn't have a fixed salary? How would they pay the money back? What's the chances your research grant might be cancelled?

I would imagine your Research Council would be pretty peeved if they discovered you were being reckless with their funding on something so vain as a car finance, which they gave to you to help with your studies.

It is a stipend. That is a regular sum of money paid as a salary or allowance according to google. Its not to actually use on research. There is nothing in the contract for my funding that says anything about not being able to use it this way. And it is regular, just not monthly, and the only way that it would disappear is if I left the University. Same as a if I quit a job. The bank might take your point of view though so thank you for answering

Wyndham

It's a stipend, but probably for 3 years in total? So, you need to have a loan which is less than 3 years. But that's assuming you're about to go into year 1, which from what you've said doesn't seem quite right? So, what sort of length of loan were you thinking?

And, just to say, people are trying to help you but need more information. They are not judging you in some way, just trying to help you think it through. You seem a little prickly about that though, which means that other people won't be inclined to help you. There are some good people on here who will have good advice and who want to help, so do make the most of their advice and expertise.

waterswims

It's a stipend, but probably for 3 years in total? So, you need to have a loan which is less than 3 years. But that's assuming you're about to go into year 1, which from what you've said doesn't seem quite right? So, what sort of length of loan were you thinking?

And, just to say, people are trying to help you but need more information. They are not judging you in some way, just trying to help you think it through. You seem a little prickly about that though, which means that other people won't be inclined to help you. There are some good people on here who will have good advice and who want to help, so do make the most of their advice and expertise.

It is for 4 years total (I am in a Doctoral Training Centre), I have finished 1 year, so I have 3 years remaining. I am looking at loans of a maximum of 3 years.

I am sorry for sounding impatient, however you are one of the few that is asking questions about the question I asked.

jonesMUFCforever

When you apply for a loan you will be asked your occupation - if you say student - your application will fail.

waterswims

When you apply for a loan you will be asked your occupation - if you say student - your application will fail.

Yeah that was what I was worried about thank you

DCFC79

waterswims wrote: »

That's why I am asking advice on a website called "Money Saving EXPERT", because I don't know how these things work internally and have had no experience in them.

I know I can afford the repayments because I can look at the advertised personal loan from HSBC and see the repayments and then also work out the repayments if the APR is double or triple the advertised one. I am not looking for a loan that would stretch my monthly budget to the limit, just enough to do what I want with it.

No guarantee you would get the advertised rate.

I don't believe anyone here can give an answer to "Does my status as a student and the fact that my income is not a salary paid by an employer but instead a grant from the Research Council effect my chances of securing a loan/car finance/HP/PCP/whatever? And if so, to what degree?"

Whether you can source finance is down to the lender and how much a risk they perceive you to be based on the information you provide in the application.

downhillfast

Based on what you have said regarding usage I'd estimate that your annual mileage will be no more than 6000-7000 which is pretty low.

Just for the sake of throwing some numbers around lets say you get a car that does say 40 miles per gallon (which will equate to approx £750 a year in fuel for your usage)... costs circa £1k to insure (if not more as you say it is your first car)... £100 or so to tax... and £100 (absolute minimum) a year for maintenance - the yearly costs to run this car are approx £2k... to do 6000 miles... 33p per mile before you've even thought about the depreciation of the vehicle and the potential interest you may be paying on its purchase.

If you are absolutely set on having a car (and I can understand that as I've not been without a car since I passed my test 20 odd years ago...) then you should really be looking at buying an older car outright in my opinion as you really can't justify massive loss through depreciation or paying loads in interest.

Wyndham

waterswims wrote: »

I am sorry for sounding impatient, however you are one of the few that is asking questions about the question I asked.

You still haven't got it, have you? People are trying to help you and their questions are to do with that. I haven't seen anything on this thread that I've thought is an irrelevant question.

We're not necessarily experts, but there is plenty of 'life experience' here, which means that sometimes questions are asked to help understand, and to then advise based on the full information. As a PhD student, you should understand this approach.....?

And this is the internet. Once you've posted, you lose control. This thread could go anywhere!