Need help - first time loaner!

matthewv93

Ok,

So I'm a recently university grad, who has just started work at IKEA, I do 34 hours a week at £16,619 Gross income per year. If I do overtime to top it up to 40 hours a week which is 99% possible but not contractual it bumps it up to around £19.5k.

I'm looking to borrow a loan of around 5000 split over 48 months, which would help me buy a new car which is needed as my old car costs too much to run and I've worked out the switch i'd make would save me £1,200 a year due to lower tax,petrol and insurance and in the meantime give me a new car. and I would use the rest to pay back my mum, and to pay off some of my student overdraft. I've worked out that I can definitely afford the repayments on most of the <10% interest loans each month due to my outgoings and still have disposable income after that.

On Sainsburys bank online calculator it says I have a good chance of being accepted but just wanted advice from somebody who knows more about loans/finance than myself. In terms of is what I'm doing even a good option, is it likely and if their is anything that is a red flag that I have missed.

Thanks Guys

BrassicWoman

hi,

yu have an ovedraft and owe mum money - are you quite sure about the repayments being affordable?

I would pay both of those off first then get the car.

[Deleted User]

Get some savings in the bank first. You don't want to be sitting at home in a month's time with no job and a shiny new car on the drive.

enthusiasticsaver

How much do you owe on your overdraft and your mum? Is she willing to wait for her money? I would be reluctant to get yourself into further debt when you have only just started work so would agree with the above that this is not a good move. Moving to a less expensive car in six months time when you have had a chance to repay some debt and get some savings is a better option. I would have thought most lenders would at least want you to get out of your 3 month probation period before loaning you money anyway. When did you start this job?

[Deleted User]

Lower your sights and buy a cheaper car, you won't get a "new" one for 5k anyway and shopping around you should get something half decent for 3k