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Hi,
I will soon be looking for a loan.
I intend to take out the loan in September, with the intention of buying a car.
However, I am likely to:
1) Not spend the full amount of the loan.
2) Potentially not use the money until March 2020.
Also, I don't want the car to be security for the loan as it adds complexity if the loan isn't paid off and i want to sell it.
Thanks.
I will soon be looking for a loan.
I intend to take out the loan in September, with the intention of buying a car.
However, I am likely to:
1) Not spend the full amount of the loan.
2) Potentially not use the money until March 2020.
Also, I don't want the car to be security for the loan as it adds complexity if the loan isn't paid off and i want to sell it.
Thanks.
Saving Pennys To Pay For Petrol Powered Toys
Im A Budding Neil Woodford.
Im A Budding Neil Woodford.
0
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Replies
Put car as the reason, but also leave it until you need it. That will both reduce the interest you pay and the amount you need to borrow.
Would you not be better off waiting a few months before applying for the loan, especially as you do not want to use it until next year?
Not sure why you need to apply for the loan 6 months before you actually need the money...is it because you cannot afford the loan and need to use the loaned money to make the loan payments for 6 months?
As i said, potentially not buying until March 2020.
Reason being, the car i am after (a manual Corvette) is very rare and when one comes up at a good price, it sells within days, so i need to be in a position to go and buy it as soon as one is advertised at a good price.
Im A Budding Neil Woodford.
Can you not just leave a deposit...?
I want to know that i can borrow the money at a good rate, before i start car hunting.
I am more than happy to accept the £400 of interest i will pay, for borrowing £15k for 6 months longer than i potentially would, besides i hope to have bought long before 6 months.
Anyway, my question has been answered. Thanks all.
Im A Budding Neil Woodford.
Have you factored in cost of insurance/tax/petrol etc into your monthly budget ?
But if you accept the loan will cost you £400 to borrow early, then only leave a £400 deposit. Could even try £250.
Unlike the loan that will cost you more either way, the deposit will only be lost if you end up not buying the car. If you do, it won't cost you any more. Placing a deposit would leave you in either the same, or better situation.
The insurance tends to be quite cheap, believe it or not, as I looked into getting a classic Mustang