Finance options for 13 year old banger

Legacy_user

Hi everyone

I own outright a 13 year old hatchback, middle of the 1.0l range
Do you know what my finance options are or where I could go for a secured loan on it? I'd like to make a pension topup. I expect that because it depreciates slower than a new car it must be better security for what I do borrow

Thank you in advance

worried_jim

I’ll give you £25.

force_ten

are you talking about a log book loan?

if you are then I dont think you will get any decent loan against a thirteen year old car that you describe as a banger

System

Yea, it doesn't have to be much, it just has to be at a lower rate of interest than the average return on Vanguard lifestrategy 100. A margin loan would be marked to market, this wouldn't be...

AdrianC

MatthewAinsworth wrote: »

I own outright a 13 year old hatchback, middle of the 1.0l range
Do you know what my finance options are or where I could go for a secured loan on it? I'd like to make a pension topup. I expect that because it depreciates slower than a new car it must be better security for what I do borrow

And what would you reckon this 13yo 1.0 hatchback "banger" is currently worth?

Let's be honest, it's one decent bill from scrapping, isn't it? What sort of loan do you think anybody's going to give against it, and still be sure of getting their money back after the costs of repossession have been covered?

System

With its fresh mot I estimate value of about 4-500£, I am prepared to pay over its value in repairs if those repairs will give me more than a years worth of use. I reckon that as long as the loan is beneath scrap value by the end of this year's mot, the security's good. My friend recently got paid £50 with free collection for a scrap

debtdebt

You're going to get nothing against it.

System

Might get a free laugh if my garage ever tells me to scrap I could say it's on finance and see the look on their faces lol

force_ten

no main street lender will offer a loan secured against a 13 year old car, you may get an offer from a log book loan lender but the interest rates on a log book loan will be astronomical starting around 80% apr going up to around 450% apr so i dont think log book loans are where you should be looking

System

Thank you, I certainly wouldn't take anything more than 10% interest (aiming for 12% return), even the approx 8% rate of margin loans spooks me a little

worried_jim

There is more profit to be had in looking for loose change down the sides of the sofa.