First Job, First Loan... Help needed!

JonSimmonds

4000 on a car is alot for your first car,the insurance its self will be alot, consider getting a cheeper banger (as someone else said) or else use public transport.

Now your working full time you will want to spend your free time enjoying yourself and having fun, not spending it looking at the bank ballance and releasing that you have the grand total of £20 left for "socialising" for the 3 weeks till the next payday

al86

okay, i appreciate that you guys slandering the fact of me getting a loan are just trying to give me guidance.

To get one thing straight, this is NOT my first car at all, and not my first insurance policy, I have had a few cars since I started driving, and not inexperience in the world of cars / insurance.

I have worked it out, that after my monthly outgoings through a loan, car insurance, board and petrol, I will have between £650 - £700 left over to play with after tax each month.
So I'm by no means going to be stuck with no money each month.

Oh and another thing, the car is not NEW, I am not so stupid as to buy a new car. I do know my cars, and have dedicated most of my time over the last 2 years to my cars. Thanks for the advice none the less.

Now that I have cleared those things up, could I have some advise with regards to loans please!
thanks a lot.
al

jonesMUFCforever

Quote from Al86 To get one thing straight, this is NOT my first car at all, and not my first insurance policy, I have had a few cars since I started driving, and not inexperience in the world of cars / insurance.

He is all of EIGHTEEN years of age!
Not sure if his name suggests year of birth or his IQ!

Would he also like to answer the questions about his salary and he amounts he intends to pay his parents for his upkeep.
Eric

daveboy

I'd suggest that he has parents with loads of money and no common sense. Therefore he is living for free.

You have the internet, use it to search for loans instead of expecting someone to spoon feed you.

Too many people come on here asking for things that it is easy for them to find out.

Josie_Jump_3

Blimey, give the guy a break. Nothing like a nice friendly welcome to a new member seeking advice.

I purchased my first car via a loan when I was 18 and didn't have any problems. Not everyone on here has problems with finances, do you think Al would be taking time out to seek advice on the best loan/deal around if he hadn't thought it through ? NO, we would have already signed up to a deal and would be driving around in his new car already. Sometimes it's nice to be positive about things and give a little encouragement.

Al, my only advice would be start with your own bank first. Thats what I did and was accepted first time. If they decline then try someone like Alliance & Leicester as they do car loan deals - ok they're not the best in terms of interest rate but for your first loan I don't think you'll find that good rate straight off.

Good luck

hey and for what it's worth, we bought a brand new Civic Type R on finance from Honda and I still smile everyday when I drive it. So I hope you enjoy your new car !

'Josie_Jump puts on hard hat and retreats for inevitable verbal bashings shortly passing her way'

daveboy

Spoon feeding time and today we have Josie_Jump to do the honours.

Josie_Jump_3

daveboy wrote:

Too many people come on here asking for things that it is easy for them to find out.

Correct me if I'm wrong but isn't that what this place is for ? To offer advice to people ? Or some club where you can only join if you agree with the senior folk ?

daveboy

I'm not against questions being asked on complex problems but this is basic - you do some research in relation to what you want to borrow and when you've found one that matches what you are able to repay, you apply to them.

It appears that the OP and his spoon feeder didn't learn a lot at school.

youngandreckless

Al,

Apologies if my post seemed off topic, I personally like to make sure that any advice I give is balanced and felt that as my loan is my only debt left and I'm desperate to get rid of it, it seemed right to mention the down sides I've discovered.
Anyway, loan wise I'm currently with Cahoot and personally I've had no trouble with them. They do fixed and flexible loans and very decent rates of interest, I'm sure that when I read my paperwork they're part of Abbey which may further help you. As I said before you'll need to shop around, and unless anyone knows better, my experience has been that you don't know whether they'll provide the loan until you apply, so there isn't really much more I can say of any help. Good Luck

mrcow

Hi Al,

With you only having started work, I think that you may find it difficult to get a good loan with anyone but your bank. If you can, then the best option may be to make an appointment to see someone in the branch and apply for the loan face to face. Having a look on the Abbey site though, their typical APR for a loan of this size is 14.9% (and could be even higher as it's only a typical APR).

Therefore a £4000 loan over two years will cost you £191 per month (total finance £4584). A loan on similar terms with for example Cahoot at 6.4% would cost £178 per month (total cost of loan £4284). So as you can see, shopping around can save you hundreds.

I can't comment on whether you'd be accepted by Cahoot or not, but you could always call them for advice, they may advise to wait a couple of months so that you have more of a wage history? But I can't comment for sure.

Are you on a probation period at work? As this may come into it too?

A couple of tips whilst searching for a loan for any purpose...(in my opinion anyway!)

1. Don't be tempted to borrow more than you absolutely need. If you can afford to save for a couple of months before you take the loan out, then you will benefit. For example, if you can get a better deal on a cheaper car that will do as good a job then consider it.

2. Make sure that the are no 'hidden' charges, for example overblown penalties if you pay off the finance early

3. Don't be tempted to take the loan out over a longer period just to reduce the monthly repayments, you'll end paying more in the long run - it's a false economy.

4. Don't sign up to a loan that is forcing you to take compulsory payment protection insurance. It's often completely overpriced. Do your homework and find out what you're getting for your money.

5. Always make sure that you are comparing like for like between loans. Always compare the APR (all loans will state this, although some may try to 'blind' you with figures, for example by quoting a flat interest rate, or a monthly rate).

6. If you get a loan offer, walk away and read all the T&Cs in your own time. You'll have plenty of time to repent at your own leisure if you sign before you've read the small print.

7. Personally, I wouldn't consider a loan with any of the numerous companies that you see advertising on the TV (many of these are for secured loans anyhow) as I feel that they aim at the more vunerable end of the market. I've heard lots of horror stories (which I won't bore you with now!) - so stick with what you know and be sensible about what you put your name to.

Whatever car you are looking at, make sure you do your homework on that too. Cars can be very expensive if/when they go wrong, and if you are not buying a new car, then you won't be protected by a warranty.

Good luck and drive safely.