First time loan advice

Erinbreen96

Hi, I'm a newly qualified nurse and I'm looking to buy a car. I have no credit history, I'm living at home and I need a car loan/loan for a new car. What would be the best way to do this?
I will be earning around £1,700 a month, so I don't want to spend anymore than £300 a month on a car.
Any advice welcome!

Thank you

[Deleted User]

Erinbreen96 wrote: »

Hi, I'm a newly qualified nurse and I'm looking to buy a car. I have no credit history, I'm living at home and I need a car loan/loan for a new car. What would be the best way to do this?
I will be earning around £1,700 a month, so I don't want to spend anymore than £300 a month on a car.
Any advice welcome!

Thank you

Genuinely, based on my own personal experiences with car finance, is do not start out on your new career with car finance. Buy a cheap but reliable run around for around £1,000 and run it into the ground. Something like a Toyota Yaris. When you're saving you buy your own place you'll kick yourself if you've been spending £300 a month on car finance. My first car was a second, maybe even third hand Ford Ka bought from savings. I should have stuck to that method of buying cars instead of going down the PCP route.

ratrace

Erinbreen96 wrote: »

Hi, I'm a newly qualified nurse and I'm looking to buy a car. I have no credit history, I'm living at home and I need a car loan/loan for a new car. What would be the best way to do this?
I will be earning around £1,700 a month, so I don't want to spend anymore than £300 a month on a car.
Any advice welcome!

Thank you

Hi, Erin stop stop stop please do not get a car on finance its not worth it trust me pcp is a very expensive way to run a car, like the above poster said just buy a small used ford fiesta or a yaris it will do you well trust me if i could go back stop my self fromgetting into debt over things i wanted over things i needed i would

yes you may need a car for work i understand but you do not need new car especially as its going to be sat in a works car park for 10 hours a day and your just going to drive 30 mins back home its not worth it

see this video below this should show you what i mean

https://www.youtube.com/watch?v=8VELqbHZ7Vk
https://www.youtube.com/watch?v=K1usdOW4RyI


you will thank us later

sourcrates

Another vote for the second hand market, £300 a month on a car, are you mad ???
Seriously, ignore the hype surrounding new vehicles, the cost is ridiculas, go for a ten year old ish one, small/medium hatchback, they are almost as good as new these days if looked after, do some research, don`t throw away your new salary on a chunk of shiney reycled metal and plastic.

MovingForwards

Don't do it, just get a bank loan for £1500 - £2k, buy a second hand car and run it until it's dead.

Means you can save each month for repairs, your own place and still have a life.

Mutton_Geoff

I'll second that. Add up the cost of ownership of a new car and remind yourself how expensive it is. My recommendation would be a Honda/Toyota petrol car, manual gearbox for under £1,200 (loads on Autotrader). Bide your time for a privately owned one or two owner, full service history example. And take someone with you who knows about cars.


Four months of your proposed budget and you own the car.


£300 a month on a PCP will see you out of pocket by over £10,000 in three years time with nothing to show for it. And with an MOT, tyres etc due, you'll just be sucked into a repetitive cycle. Exactly what the dealers want you to do.

Ben8282

Don't get one of those PCP things. If you do get a loan get a proper loan so that when you have repaid the loan you will actually own the car.
Have a look round at second hand cars something sensible and suitable that will meet your needs. You don't say why exactly you need this car. Also £300 per-month on the salary mentioned is a lot to commit.

enthusiasticsaver

I would agree that you would be mad to buy into any of these PCP or car lease deals particularly as you live at home now but might not always so £300 out of your income is a lot as you will also have to pay for upkeep and fuel. If you have no credit history maybe approaching your bank for a low interest personal loan is a good option. Ideally I would be looking at a money transfer card at 0% so you could try the eligibility checker on here to see if you could get one. I would not pay more than £2k for a first car.

enthusiasticsaver

Read on the debt free diaries how many people have got sucked into paying out huge amounts on monthly car payments and usually the loan is much higher than the value of the car as they depreciate so quickly. Saving up to buy in cash is best option. If you have to borrow then 0% money transfer card or low rate personal bank loan.