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  • FIRST POST
    • MatthewAinsworth
    • By MatthewAinsworth 4th Jan 18, 10:40 PM
    • 3,075Posts
    • 1,218Thanks
    MatthewAinsworth
    Finance options for 13 year old banger
    • #1
    • 4th Jan 18, 10:40 PM
    Finance options for 13 year old banger 4th Jan 18 at 10:40 PM
    Hi everyone

    I own outright a 13 year old hatchback, middle of the 1.0l range
    Do you know what my finance options are or where I could go for a secured loan on it? I'd like to make a pension topup. I expect that because it depreciates slower than a new car it must be better security for what I do borrow

    Thank you in advance
Page 1
    • worried jim
    • By worried jim 4th Jan 18, 10:55 PM
    • 9,217 Posts
    • 14,222 Thanks
    worried jim
    • #2
    • 4th Jan 18, 10:55 PM
    • #2
    • 4th Jan 18, 10:55 PM
    I!!!8217;ll give you £25.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • force ten
    • By force ten 4th Jan 18, 10:59 PM
    • 1,697 Posts
    • 1,136 Thanks
    force ten
    • #3
    • 4th Jan 18, 10:59 PM
    • #3
    • 4th Jan 18, 10:59 PM
    are you talking about a log book loan?

    if you are then I dont think you will get any decent loan against a thirteen year old car that you describe as a banger
    • MatthewAinsworth
    • By MatthewAinsworth 4th Jan 18, 11:01 PM
    • 3,075 Posts
    • 1,218 Thanks
    MatthewAinsworth
    • #4
    • 4th Jan 18, 11:01 PM
    • #4
    • 4th Jan 18, 11:01 PM
    Yea, it doesn't have to be much, it just has to be at a lower rate of interest than the average return on Vanguard lifestrategy 100. A margin loan would be marked to market, this wouldn't be...
    • AdrianC
    • By AdrianC 4th Jan 18, 11:02 PM
    • 17,578 Posts
    • 15,940 Thanks
    AdrianC
    • #5
    • 4th Jan 18, 11:02 PM
    • #5
    • 4th Jan 18, 11:02 PM
    I own outright a 13 year old hatchback, middle of the 1.0l range
    Do you know what my finance options are or where I could go for a secured loan on it? I'd like to make a pension topup. I expect that because it depreciates slower than a new car it must be better security for what I do borrow
    Originally posted by MatthewAinsworth
    And what would you reckon this 13yo 1.0 hatchback "banger" is currently worth?

    Let's be honest, it's one decent bill from scrapping, isn't it? What sort of loan do you think anybody's going to give against it, and still be sure of getting their money back after the costs of repossession have been covered?
    • MatthewAinsworth
    • By MatthewAinsworth 4th Jan 18, 11:05 PM
    • 3,075 Posts
    • 1,218 Thanks
    MatthewAinsworth
    • #6
    • 4th Jan 18, 11:05 PM
    • #6
    • 4th Jan 18, 11:05 PM
    With its fresh mot I estimate value of about 4-500£, I am prepared to pay over its value in repairs if those repairs will give me more than a years worth of use. I reckon that as long as the loan is beneath scrap value by the end of this year's mot, the security's good. My friend recently got paid £50 with free collection for a scrap
    • debtdebt
    • By debtdebt 4th Jan 18, 11:06 PM
    • 479 Posts
    • 311 Thanks
    debtdebt
    • #7
    • 4th Jan 18, 11:06 PM
    • #7
    • 4th Jan 18, 11:06 PM
    You're going to get nothing against it.
    • MatthewAinsworth
    • By MatthewAinsworth 4th Jan 18, 11:08 PM
    • 3,075 Posts
    • 1,218 Thanks
    MatthewAinsworth
    • #8
    • 4th Jan 18, 11:08 PM
    • #8
    • 4th Jan 18, 11:08 PM
    Might get a free laugh if my garage ever tells me to scrap I could say it's on finance and see the look on their faces lol
    • force ten
    • By force ten 4th Jan 18, 11:11 PM
    • 1,697 Posts
    • 1,136 Thanks
    force ten
    • #9
    • 4th Jan 18, 11:11 PM
    • #9
    • 4th Jan 18, 11:11 PM
    no main street lender will offer a loan secured against a 13 year old car, you may get an offer from a log book loan lender but the interest rates on a log book loan will be astronomical starting around 80% apr going up to around 450% apr so i dont think log book loans are where you should be looking
    • MatthewAinsworth
    • By MatthewAinsworth 4th Jan 18, 11:18 PM
    • 3,075 Posts
    • 1,218 Thanks
    MatthewAinsworth
    Thank you, I certainly wouldn't take anything more than 10% interest (aiming for 12% return), even the approx 8% rate of margin loans spooks me a little
    • worried jim
    • By worried jim 4th Jan 18, 11:21 PM
    • 9,217 Posts
    • 14,222 Thanks
    worried jim
    There is more profit to be had in looking for loose change down the sides of the sofa.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Money_Grabber13579
    • By Money_Grabber13579 4th Jan 18, 11:24 PM
    • 2,889 Posts
    • 1,396 Thanks
    Money_Grabber13579
    Could you not get a personal loan at significantly lower interest rates? I got an email from M&S advertising rates of 2.8% today, albeit, I appreciate that those rates won!!!8217;t be available to everyone (or virtually anyone...)
    Northern Ireland club member No 382
    • debtdebt
    • By debtdebt 4th Jan 18, 11:34 PM
    • 479 Posts
    • 311 Thanks
    debtdebt
    I'll humour you here. So if someone will lend you approximately half of the lowest value of your piece of junk, they will lend you £200. You hope someone will offer you a loan at 10% pa. So, back of a fag packet calculations will mean you will pay £20 interest per year. You hope to make 12% pa on investing that £200 so this will give you £240 interest earnt leaving you £40 better off a year subject to tax?

    All this hassle for £40? I know this website is for money savers, but you are one sad and deluded individual.
    • seatbeltnoob
    • By seatbeltnoob 5th Jan 18, 12:11 AM
    • 450 Posts
    • 107 Thanks
    seatbeltnoob
    better off just getting a personal loan
    • MatthewAinsworth
    • By MatthewAinsworth 5th Jan 18, 5:31 AM
    • 3,075 Posts
    • 1,218 Thanks
    MatthewAinsworth
    Debt debt - it wouldn't be out of kilter with the returns on stoozing Vs a cashback card

    The point about a personal loan is true, I think 0% credit cards and either balance transfer or consolidate. I found though that credit rating suffers having high utilisation and this could be a false economy Vs getting a cheaper mortgage when the time comes
    • worried jim
    • By worried jim 5th Jan 18, 8:36 AM
    • 9,217 Posts
    • 14,222 Thanks
    worried jim
    Could you not get a personal loan at significantly lower interest rates? I got an email from M&S advertising rates of 2.8% today, albeit, I appreciate that those rates won’t be available to everyone (or virtually anyone...)
    Originally posted by Money_Grabber13579
    Isn't it 51% of all successful applications have to get this rate?
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • CardinalWolsey
    • By CardinalWolsey 5th Jan 18, 9:25 AM
    • 213 Posts
    • 192 Thanks
    CardinalWolsey
    I thought this must have been a school holidays post, but then noted the profile of the OP. So I checked the OP's other threads - OP, are you actually Joe Lycett?
    • BeenThroughItAll
    • By BeenThroughItAll 5th Jan 18, 9:47 AM
    • 4,680 Posts
    • 4,092 Thanks
    BeenThroughItAll
    OP. Since no one's asked directly, I will.






    Are you !!!!ing insane?
    • wgl2014
    • By wgl2014 5th Jan 18, 10:36 AM
    • 650 Posts
    • 416 Thanks
    wgl2014
    Out of interest OP....

    How are you planning to invest £500 to generate a 12% return?
    • Herzlos
    • By Herzlos 5th Jan 18, 10:47 AM
    • 7,313 Posts
    • 6,580 Thanks
    Herzlos
    Thank you, I certainly wouldn't take anything more than 10% interest (aiming for 12% return), even the approx 8% rate of margin loans spooks me a little
    Originally posted by MatthewAinsworth
    The car is presumably worth £500 privately, so scrap at trade/auction. Anyone offering credit will be be basing it on the auction value (£50) and you're likely to be offered less than £20 finance at a huge rate, if they offer at all.

    You'd be much better off just applying for an unsecured personal loan - can get far below 12% on them.
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