We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
State Pension-Loan query
Hi newbie poster so apologies if wrong forum topic for this post.
I have been retired for 6 years and my wife(also retired) have been living on our work pensions for day-day finances and some savings for bigger purchases. Although our credit rating is very good the prospect of "loan" does seem poor? Will this change when I officially become an OAP in a few weeks and receive my state pension? Is this classed as a regular income?
Reason for asking is looking to purchase a new(er) car and don't want to deplete the savings so looking to a loan, finance or PCP deal.
I have been retired for 6 years and my wife(also retired) have been living on our work pensions for day-day finances and some savings for bigger purchases. Although our credit rating is very good the prospect of "loan" does seem poor? Will this change when I officially become an OAP in a few weeks and receive my state pension? Is this classed as a regular income?
Reason for asking is looking to purchase a new(er) car and don't want to deplete the savings so looking to a loan, finance or PCP deal.
0
Comments
-
It's state income so guaranteed
Affordability is the requirement now , this may improve it.
I'll move to credit and loans forumEx forum ambassador
Long term forum member1 -
Have you actually checked car finance deals?
I know a chap who is an occupational and state pensioner and had no difficulty whatsoever in obtaining 0% two year finance on his latest car.
Nor did he have any trouble in this regard when he was retired on only his occupational pension.1 -
pedro9955 said:Hi newbie poster so apologies if wrong forum topic for this post.
I have been retired for 6 years and my wife(also retired) have been living on our work pensions for day-day finances and some savings for bigger purchases. Although our credit rating is very good the prospect of "loan" does seem poor? Will this change when I officially become an OAP in a few weeks and receive my state pension? Is this classed as a regular income?
Reason for asking is looking to purchase a new(er) car and don't want to deplete the savings so looking to a loan, finance or PCP deal.
Then you just pay yourself the loan payments and rebuild your savings that way.
Unless it truly is 0% finance (most examples I have seen have smaller deposit contributions on new cars, or used cars have a higher mark up) then borrowing will just increase your costs.1 -
There is a strange mentality of savings, you see it on the savings board with people gushing over a £250 a month regular saver that pays 3.5% and gains £56.58 in interest vs any sort of loan costs dwarfing the gains you get (unless it's really 0% where you could do the best of both worlds and have the money in savers to pay off the finance at the end). Depleting savings vs costs of hundreds a year in loan is a no brainer yet people still have this idea that earning pennies is a better idea.
2 -
Deleted_User said:There is a strange mentality of savings, you see it on the savings board with people gushing over a £250 a month regular saver that pays 3.5% and gains £56.58 in interest vs any sort of loan costs dwarfing the gains you get (unless it's really 0% where you could do the best of both worlds and have the money in savers to pay off the finance at the end). Depleting savings vs costs of hundreds a year in loan is a no brainer yet people still have this idea that earning pennies is a better idea.
People "gushing" about the specific product you mention do so as they have money looking for a home and no debts to pay down with it.1 -
kaMelo said:Deleted_User said:There is a strange mentality of savings, you see it on the savings board with people gushing over a £250 a month regular saver that pays 3.5% and gains £56.58 in interest vs any sort of loan costs dwarfing the gains you get (unless it's really 0% where you could do the best of both worlds and have the money in savers to pay off the finance at the end). Depleting savings vs costs of hundreds a year in loan is a no brainer yet people still have this idea that earning pennies is a better idea.
People "gushing" about the specific product you mention do so as they have money looking for a home and no debts to pay down with it.
Read the OP, they are talking about taking out finance when they have savings. The more general point is that savings rates are terrible, 3.5% on a regular saver is seen like the second coming of Yeshua, but earns a pittance and likely OP's savings are even less if they're in some sort of longer term account that could be effectively losing them money. No point taking finance where you pay hundreds in interest and having short term savings where at best you can get less than £60 at the end of the year
1 -
Deleted_User said:kaMelo said:Deleted_User said:There is a strange mentality of savings, you see it on the savings board with people gushing over a £250 a month regular saver that pays 3.5% and gains £56.58 in interest vs any sort of loan costs dwarfing the gains you get (unless it's really 0% where you could do the best of both worlds and have the money in savers to pay off the finance at the end). Depleting savings vs costs of hundreds a year in loan is a no brainer yet people still have this idea that earning pennies is a better idea.
People "gushing" about the specific product you mention do so as they have money looking for a home and no debts to pay down with it.
Read the OP, they are talking about taking out finance when they have savings. The more general point is that savings rates are terrible, 3.5% on a regular saver is seen like the second coming of Yeshua, but earns a pittance and likely OP's savings are even less if they're in some sort of longer term account that could be effectively losing them money. No point taking finance where you pay hundreds in interest and having short term savings where at best you can get less than £60 at the end of the year
I'd misunderstood your post thinking it was aimed at the savings board rather than the OP, (don't ask, I can't answer why) but now I get it was aimed a the OP I concur with what you've said.1 -
kaMelo said:Deleted_User said:kaMelo said:Deleted_User said:There is a strange mentality of savings, you see it on the savings board with people gushing over a £250 a month regular saver that pays 3.5% and gains £56.58 in interest vs any sort of loan costs dwarfing the gains you get (unless it's really 0% where you could do the best of both worlds and have the money in savers to pay off the finance at the end). Depleting savings vs costs of hundreds a year in loan is a no brainer yet people still have this idea that earning pennies is a better idea.
People "gushing" about the specific product you mention do so as they have money looking for a home and no debts to pay down with it.
Read the OP, they are talking about taking out finance when they have savings. The more general point is that savings rates are terrible, 3.5% on a regular saver is seen like the second coming of Yeshua, but earns a pittance and likely OP's savings are even less if they're in some sort of longer term account that could be effectively losing them money. No point taking finance where you pay hundreds in interest and having short term savings where at best you can get less than £60 at the end of the year
I'd misunderstood your post thinking it was aimed at the savings board rather than the OP, (don't ask, I can't answer why) but now I get it was aimed a the OP I concur with what you've said.
If they can get 0% interest however, I would personally pay into a savings account (the 3.5% one is for previous customers only unfortunately) or something like the virgin current account at 2% for £1000 to at least get something back1 -
My acquaintance tells me that he traded in his old car for the new one ( deposit) and there was no problem at all about 0% finance for two years for the balance.
As he said, there was no point in financing the balance using money from savings on which he was getting at least some interest.1 -
Thanks for the comments. Our savings make virtually zero interest despite moving things around from time to time. Its more the safety net argument. Never having a lot of savings in life its a thought to ship out a few K's on something that will depreciate when you drive it off the forecourt when for £200-£300 pounds per month you can have a newer, reliable(?) product which I need in a modern family life. A dilemma!!!!0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.4K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 241K Work, Benefits & Business
- 617.3K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards