Car Finance

EdGasketTheSecond

Learn to only buy something when you have saved and can pay for it outright. The only exception should be a house that will appreciate in value.

motorguy

If you can save £5000 i'd buy something with that. You can get something very usable for that sort of money.

A £19K car at age 19 with no income is crazy talk. Go and enjoy your university years rather than saddle yourself with such a big debt.

neilmcl

motorguy wrote: »

If you can save £5000 i'd buy something with that. You can get something very usable for that sort of money.

That's the thing though, he's not "saving" £5,000, he intends taking that from his student debt. As he clearly admits and understands, using debt to to finance more debt isn't a very god idea, and certainly not very MSE.

motorguy

neilmcl wrote: »

That's the thing though, he's not "saving" £5,000, he intends taking that from his student debt. As he clearly admits and understands, using debt to to finance more debt isn't a very god idea, and certainly not very MSE.

Yes, good point, he'd be £5,000 less in debt by not even doing that.

born_again

Alexhat wrote: »

I have taken the time to work out all of this, with a large deposit it should be around £200-£250 per month for the car and it is around £1000 per year for insurance. I should be able to afford it, i just was not sure if i would even get finance without a job.

A Guarantor loan for £10K is approx £330 a month @39.9%

TFS who advertise @ 29.9% but comes out @ 39.9% for £10K over 5 years.

Both require home owner as guarantor.

I would expect ins to be a lot higher on a car of that value. Especially with commuting inc given your age and the annual mileage.

Also do not expect mpg to be as good either.

AdrianC

born_again wrote: »

A Guarantor loan for £10K is approx £330 a month @39.9%

TFS who advertise @ 29.9% but comes out @ 39.9% for £10K over 5 years.

£330 x 60 = £19,800

Yep, near as dammit double the amount borrowed.

gzoom

Alexhat wrote: »

In all honesty, people are not really answering the question I initially asked haha.

Because when you get a bit older and look back at the concept of using debt to finance more debt when you have no job you will realise how ridiculous the proposal you have come up with.

I had a £500 car at University which I crashed than coudlnt afford to replace so replaced it with a £50 push bike. I use to be so skint as a student my diet for half the week would be 10p ASDA noodles, and trust me you can find cheap accommodation, and a sharing a house with people is a great way to open your eyes to the world and learn most people can only dream about a £19k car at 19.

Forget about getting into debt for the sake of a car, University is there for you to study and focus on life prospects, learn about who you are going to when you grow up - learning to be independent/sharing a house with people is a life skill almost as important as any formal education you will get.

Don't start your adult life been so comfortable with accumulating debt, its not a path you want to go down. As someone else has already said, forget a fancy car, focus on your studies, share a house, meet people, make mistakes and learn from them, map out a career path, and you will be rewarded for your hardwork.

I loved my time at Uni, I absolutely love cars but the last thing I was worried about at Uni was cars, but I did make my self a promise at Uni, I would work hard and ensure I had the earning power to make sure every car purchase I make in future life would be better/faster than the car it replaced. I essentially set a myself a target at 19 for my future financial success be judged on what cars I could afford to buy - shallow I know!!

I had a very low bar to start off with - £500 Micra, but I now some 20 years later I own (fully paid up no finance) Tesla Model X, so thats a promise I made myself at a similar age to you I have been able to keep. Infact my problem now is then only cars quicker/better than the Tesla are proper Supercars, so ture to my promise my target now is to own something even better at some point in future, and the only way to do that is not by getting into debt with a loan/finance but more hardwork .

Mercdriver

jeepjunkie wrote: »

Mate, it's Christmas... Ignore all these killjoys, you only live once and deserve the car, lol. Your mates will love think you are the man!

Are you serious? Please tell me you are joking!

k6chris

gzoom wrote: »

........open your eyes to the world and learn most people can only dream about a £19k car [STRIKE]at 19[/STRIKE].

Happy Christmas - focus on taking on as little debt as you can in 2020.

Alexhat

Thanks everyone for the replies, after some hard thinking, I would be better off saving money to buy a newer car but save the money so i can buy it straight out instead of financing.