10 year loans

cmbrookes

I know MSE stance on borrowing as little as possible and payback as quickly as possible but can anyone the best way to go about getting a 10 year loan. It is for a new car but over 10 years the payments would be kept to an amount I can easily afford each month and we would have a new family car. Just want to know who's the best to go with for the loan. The tool on here only offers up to 7 years. 

TadleyBaggie

10 year loan for a car is madness, you will probably pay out many times the original price and after 10 years have a virtually worthless car. 

kaMelo

Agreed, a ten year loan on a depreciating asset is madness.
If the only way you can afford this is with a ten year loan then you can't afford it. Cut your cloth accordingly,  your future self will thank you for doing so.

cmbrookes

TadleyBaggie said:

10 year loan for a car is madness, you will probably pay out many times the original price and after 10 years have a virtually worthless car. 

I had a feeling this is the feedback I'd get. The car I have now is 11 years old and I've had it 8 years and it's still running. I want an 18 plate or newer and I've seen a few with in the price range. In 10 years I'll have the loan paid off and still have a car. If I need a new car I'll just get another loan. 
I get that in a perfect world we'd all like to live loan free.
If I was to get an older car I'd be spending more money on maintaining it. 

th081

Tesco Bank do 10 year loans but you have to borrow more than 15k

secla

You would probably find the car would depreciate quicker than you were paying it off so if you ever got into trouble and needed to sell the car to pay the loan off it wouldnt cover it. 
As above tesco do it but a cheaper car over a shorter period would be a better plan financially 

cmbrookes

I do appreciate all of your feedback by the way 

cmbrookes

TadleyBaggie said:

10 year loan for a car is madness, you will probably pay out many times the original price and after 10 years have a virtually worthless car. 

Taken your advice on board and I agree with you after consideration 👍 

Nebulous2

cmbrookes said:

TadleyBaggie said:

10 year loan for a car is madness, you will probably pay out many times the original price and after 10 years have a virtually worthless car. 

Taken your advice on board and I agree with you after consideration 👍 

Second hand car prices have been extremely high recently, due to a shortage of new cars and supply chain issues. Normally though a car loses a chunk of value as soon as you buy it. If you have a short-term loan you can start off owing more than the car is worth, and as the loan reduces you will be coming back into positive territory. With a long-term loan you could spend much of the 10 years due more than it is worth. 

That leaves you vulnerable should you have a total loss and get back less from insurance than you have outstanding on the loan. 

Herzlos

What care are you looking at and what's the budget?

How much are you going to spend on maintaining an 11 year old car? It shouldn't be that bad in the scheme of things.

You're going to pay a lot more over 10 years than 7, and even then a car will have lost a lot of value over 7 years even if it's 5 years old when you buy it.

Ryan_Holden

Lunacy, 10 years for a car loan is lunacy.