Personal loan offer was not at advertised rate

MEM62

worried_jim wrote: »

£18k on a depreciating asset- madness.

I absolutely agree.

alstemp wrote: »

HI - I am currently sourcing a personal loan for £18,500 over 4 years to fund a car purchase.

= The crazy plan.

alstemp wrote: »

Over the next 2 years I plan to make additional payments towards this.

= The attempt to make it sound sensible.

alstemp wrote: »

Thanks in advance for any advice.

Advice? Yes, don't do it.

If your finances cannot cope with the additional £40 per month that the higher interest rates results in then they are already stretched. Look at your current finances. Could you cope in the event of a financial emergency or fall in income or would you be in immediate trouble?

WolfUK

MEM62 wrote: »

I absolutely agree.





= The crazy plan.





= The attempt to make it sound sensible / justifiable.





Advise? Yes, don't do it.

If the OP can afford the repayments and might be getting bonus or other income and to pay the loan off why is this silly?

Martin always says its down to personal choice and if you are ok with the risk then whats wrong? Can we only take out large loans on houses?

foxy-stoat

Another week, another thread about not getting offered the advertised lowest rate.

Keep making your regular payments on current commitments for the next 6 months and apply again for your loan.

In the mean time save up the £408 each month and when you apply next you will have £2448 extra in the bank plus any interest, so you can apply for a slightly lower loan. If you still don't get the magic rate, repeat - this time next year you will have £5,000 cash and you can apply for an even lower loan with a greater chance of the best rates.

Good lucks

MABLE

worried_jim wrote: »

£18k on a depreciating asset- madness.

We recently bought a new car and cost about £24,000 cash. We know its a depreciating asset but we love to travel in style.

beemarman

I also just paid £50k for my Jaguar F type. I paid cash for the car. No finance, and no loan. Could I have spent the money somewhere else?

Of course I could have. But, life is too damm short. 9yrs ago my doctor said I would be lucky to make it pass 2014. Guess what? I'm still here spending my hard earned money on things I can't take with me when the time ever comes.

MEM62

WolfUK wrote: »

If the OP can afford the repayments and might be getting bonus or other income and to pay the loan off why is this silly?

Martin always says its down to personal choice and if you are ok with the risk then whats wrong? Can we only take out large loans on houses?

The OP has suggested concern in the difference in interest rates- which is real terms is £40 per month in additional cost. The OP also advises that they have another loan and credit card debt. OK, there is a certain amount of reading between the lines here but if the £40 is a financial stresser then the OP is sailing too close to the wind to take on additional debt.

In respect of large loans, we can take them out on anything we like. However, that does not mean that it is prudent to do so. A cars' value will fall like a stone so to add finance costs to that loss is somewhat silly. Buy it cash, it is yours. You have options and are not stuck between a rock and a hard place if circumstances change because shiny car syndrome got the better of you.

MABLE wrote: »

We recently bought a new car and cost about £24,000 cash. We know its a depreciating asset but we love to travel in style.

Absolutely nothing wrong with buying a new car if you want one, particularly if you have the cash to do so. Why not? There is a huge difference between buying the things we want when we can afford them and taking on large debts to have them.

bigisi

MABLE wrote: »

We recently bought a new car and cost about £24,000 cash. We know its a depreciating asset but we love to travel in style.

Obviously not too much style if you're only spending £24k on a new car.

JohnMl88

bigisi wrote: »

Obviously not too much style if you're only spending £24k on a new car.

Maybe it’s “new” for him/her.

worried_jim

WolfUK wrote: »

Can we only take out large loans on houses?

An appreciating asset - sanity prevails.

Exodi

Can someone make a 'Why You Didn't Get The Headline Rate' guide and sticky it to the top of the board?

This question comes up every other day. I'm pretty sure the eligibility calculators don't even ask you about outstanding debt before telling you you're 95% sure to be accepted at 1% APR.

Pick your answer:

[_] Credit ratings are made up and you're not as attractive as you think
[_] You have outstanding debts
[_] You have negative information on your credit file
[_] You're not in the lenders demographic