Finance options for 13 year old banger

Car_54

MatthewAinsworth wrote: »

Wgl2014 -

With Vanguard global small cap, or lifestrategy 100, not decided

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000005OPT

Have you checked the trading and management charges? I suspect they may wipe out any profit on such a small investment. (Or indeed add to the losses.)

StaffsSW

As a first port of call, put your reg into We Buy Any Car, and assume it is in "average" condition.

This links to a system called CAP, which is what 90%+ of the motor trade use to appraise the value of any vehicle - however looking at the few 13 year old 1.0l cars that around (Corsa, Micra, Yaris, Arosa), the trade value is between £150-£380 depending on spec.

I'm pretty certain that nobody will offer a secured loan based on this low value, especially as you intend to continue to use the car in the meantime, the arrangement fees alone would likely absorb any capital value.

Stick the car on Gumtree, buy a bike, and stay well away from Binary Options, Forex or Crypto currencies which are almost all without exception social media scams designed to lure in young suckers, impressed by gold wrapped supercars and Yeezy trainers.

System

Car54 -

.Have you checked the trading and management charges? I suspect they may wipe out any profit on such a small investment. (Or indeed add to the losses.)

Through my platform it's % charges only, free trading - the fund itself is 0.38% a year variable (index tracker)
I will eventually move to a flat fee platform

Staffsw - good point about arrangement fees, if it weren't for that then it's just a scaled down version of a normal car loan
I live in a very hilly area, going to work by cycle is 80% walking up hill, on the way back however it's just as quick as the car. I value my time more than the Costa of the car though (have young child)

Rest assured I will never touch anything that doesn't pay some sort of dividend overall (although the funds can hold non dividend paying stocks within), I will never stock pick or time the market, I would borrow to invest only if it's not marked to market

qwert_yuiop

MatthewAinsworth wrote: »

Car54 -

more than the Costa of the car

Is that one of those wee Suzuki cappuccinos?

Mercdriver

The fact that Joey Essex is advertising log book loans should be enough to put anybody off.

Not only that, if you are intending getting a mortgage having a logbook loan company appearing on your credit history will likely end your dreams of getting a mortgage, similarly to payday loans.

By the way that Joey Essex advertised product had an interest rate of 190% APR

jimjames

wgl2014 wrote: »

How are you planning to invest £500 to generate a 12% return?

Plenty of options but not guaranteed. If you're in no rush then if you've chosen wisely you can wait until markets pick up should they experience a crash.

Car_54 wrote: »

Have you checked the trading and management charges? I suspect they may wipe out any profit on such a small investment. (Or indeed add to the losses.)

Nope they won't. Many platforms have no fixed charges for buying and selling, just an annual fee. Certainly if you invested 12 months ago you'd have substantially more than 12% return but that's still only £60 on £500 so it won't make you a millionaire.

If you'd picked this last year your £500 would now be over £700
http://www.hl.co.uk/shares/shares-search-results/s/scottish-mortgage-it-ordinary-shares-5p

System

Mercdriver - I didn't know logbook loans have an adverse effect on credit history, I knew payday loans do. Anyway the rate they seem to have is prohibitive, which is strange considering it has more security than a credit card

qwert_yuiop

Mercdriver wrote: »

The fact that Joey Essex is advertising log book loans should be enough to put anybody off.

Not only that, if you are intending getting a mortgage having a logbook loan company appearing on your credit history will likely end your dreams of getting a mortgage, similarly to payday loans.

By the way that Joey Essex advertised product had an interest rate of 190% APR

190%? Pah! Anyone here use southern railways? I was on the train from gatwick a few weeks back and saw a poster inviting me to “get my finances back on track”. At APR of a stunning 700%, it seemed like an ideal way to turn your finances into a train wreck.

qwert_yuiop

MatthewAinsworth wrote: »

Mercdriver - I didn't know logbook loans have an adverse effect on credit history, I knew payday loans do. Anyway the rate they seem to have is prohibitive, which is strange considering it has more security than a credit card

If you don’t pay, they take your car, but do they pursue you for any outstanding money? Is it not like pawning, where it’s the pawn shop taking the risk? In which case, it shouldn’t alter your credit rating.

Herzlos

I'm pretty sure they'll pursue for any shortfall; it'd be stupid not to.

MatthewAinsworth wrote: »

Mercdriver - I didn't know logbook loans have an adverse effect on credit history, I knew payday loans do. Anyway the rate they seem to have is prohibitive, which is strange considering it has more security than a credit card

It's more security than a credit card, but the costs to get the money back are huge, since the asset weighs over a ton and is mobile. If you default on it, they'll need to spend at least £100 finding and collecting the car, then transport it and sell it at an auction, where it'll go for peanuts. Then there's all the admin and overheads involved in providing the actual loan.

It might make sense to get £100 until you get paid, using a car worth £1000 as security, but it'd make no sense to lend anything on a car that's probably not going to recoup the recovery costs.

Logbook loans, like payday loans and cheque cashing centres are all going to be bad for the credit rating as they are tailored purely towards the desperate - if your finances are in good shape you'd have no need to use your cars logbook as security, for instance.