Getting a loan for a car, from my car insurance company

reidla

I'm 22 (nearly 23) in full time employment, living with parents, and in the new year I will be getting a loan of about £6,000 over 3 years to help buy another car (the loan is not for the full amount of the car, I will add in some of my savings to buy it). I am eligible for a loan, and can pay the monthly payments.

My question is, is it a good idea to get the loan to buy the car from the same place that will be insuring the car once I buy it?

I insure my car with Admiral, they give me great low prices for my age and I have heard good reviews about them in the case of a claim. After doing a soft search online of loans, Admiral give me the cheapest interest. Would this be a conflict of interest? As if I am unfortunately in a car crash (touch wood), the insurance money for the car I claim from Admiral, will be going back to Admiral to repay the loan I got to buy the car.

Thank you

[Deleted User]

The best place to get the loan from is the cheapest place you can get the loan from.

ratrace

As this is a money saving site and having seen people in (real life) get in a pickle my advise would be

Buy a car you can afford with cash, then put what you would have paid in payments in a jar every month then when you have saved up an amount then you can upgrade to a newer used car

my dad has done this all his life and never had a car payment always paid cash and we the kids do the same, next car on his hit list is a tesla which when they drop a bit more he may buy

Im not getting up everyday to go to work to make others rich sack that,

Anthorn

ratrace wrote: »

As this is a money saving site and having seen people in (real life) get in a pickle my advise would be

Buy a car you can afford with cash, then put what you would have paid in payments in a jar every month then when you have saved up an amount then you can upgrade to a newer used car

my dad has done this all his life and never had a car payment always paid cash and we the kids do the same, next car on his hit list is a tesla which when they drop a bit more he may buy

Im not getting up everyday to go to work to make others rich sack that,

Pretty much questionable. If everyone bought what they can afford with cash there wouldn't be credit cards and MSE wouldn't be promoting them. Therefore bye-bye MSE LOL.

I don't drive due to health reasons and therefore don't have a car. But my son got very good deals on finance and insurance from the car dealership he bought the car from. Kinda like a one-stop-shop which saved a lot compared with getting finance and insurance from different places. Certain car manufacturers have deals on used cars of their own make. i.e. Mercedes.

ratrace

Anthorn wrote: »

I don't drive due to health reasons and therefore don't have a car. But my son got very good deals on finance and insurance from the car dealership he bought the car from. Kinda like a one-stop-shop which saved a lot compared with getting finance and insurance from different places. Certain car manufacturers have deals on used cars of their own make. i.e. Mercedes.

The op has asked for opinions and thats what i gave my opinion
the op has a car already, the whole point of a car is to get you from a to b.

The main point i was trying to stress is that having seen people get into a silly amount of debt and regret it, for the sake of a car is not worth it once the novelty has worn off. im not saying dont buy another car just pay cash that way no one can take it if there is a job loss or ill health

also the op is very young so strating to get into good money habits will pay dividends as he/she gets older

we hear about how schools should teach kids about money and financial management but schools can only do so much, parents also have lead by example and take responsibility but if kids are growing upin households where mum n dad are always fighting about money and debt that then is already setting the kids up to fail.

having no debt is an alien concept in todays world

as dave ramsey says
"the borrower is slave to the lender" :money:

Anthorn

ratrace wrote: »

The op has asked for opinions and thats what i gave my opinion
the op has a car already, the whole point of a car is to get you from a to b.

The main point i was trying to stress is that having seen people get into a silly amount of debt and regret it, for the sake of a car is not worth it once the novelty has worn off. im not saying dont buy another car just pay cash that way no one can take it if there is a job loss or ill health

also the op is very young so strating to get into good money habits will pay dividends as he/she gets older

we hear about how schools should teach kids about money and financial management but schools can only do so much, parents also have lead by example and take responsibility but if kids are growing upin households where mum n dad are always fighting about money and debt that then is already setting the kids up to fail.

having no debt is an alien concept in todays world

as dave ramsey says
"the borrower is slave to the lender" :money:

The whole of Capitalism is built on credit and debt. If there was no credit and debt whole countries would go down. Only buying what we can afford is an admirable concept but as you say, an alien concept in today's world.