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  • FIRST POST
    • MatthewAinsworth
    • By MatthewAinsworth 4th Jan 18, 10:40 PM
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    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 2
    • MatthewAinsworth
    • By MatthewAinsworth 5th Jan 18, 11:33 AM
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    MatthewAinsworth
    Wgl2014 -
    . Out of interest OP....

    How are you planning to invest £500 to generate a 12% return?
    With Vanguard global small cap, or lifestrategy 100, not decided

    http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000005OPT
    • Car 54
    • By Car 54 5th Jan 18, 11:48 AM
    • 3,031 Posts
    • 1,903 Thanks
    Car 54
    Wgl2014 -

    With Vanguard global small cap, or lifestrategy 100, not decided

    http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000005OPT
    Originally posted by MatthewAinsworth
    Have you checked the trading and management charges? I suspect they may wipe out any profit on such a small investment. (Or indeed add to the losses.)
    • StaffsSW
    • By StaffsSW 5th Jan 18, 11:57 AM
    • 5,456 Posts
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    StaffsSW
    As a first port of call, put your reg into We Buy Any Car, and assume it is in "average" condition.

    This links to a system called CAP, which is what 90%+ of the motor trade use to appraise the value of any vehicle - however looking at the few 13 year old 1.0l cars that around (Corsa, Micra, Yaris, Arosa), the trade value is between £150-£380 depending on spec.

    I'm pretty certain that nobody will offer a secured loan based on this low value, especially as you intend to continue to use the car in the meantime, the arrangement fees alone would likely absorb any capital value.

    Stick the car on Gumtree, buy a bike, and stay well away from Binary Options, Forex or Crypto currencies which are almost all without exception social media scams designed to lure in young suckers, impressed by gold wrapped supercars and Yeezy trainers.
    <--- Nothing to see here - move along --->
    • MatthewAinsworth
    • By MatthewAinsworth 5th Jan 18, 1:14 PM
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    MatthewAinsworth
    Car54 -
    .Have you checked the trading and management charges? I suspect they may wipe out any profit on such a small investment. (Or indeed add to the losses.)
    Through my platform it's % charges only, free trading - the fund itself is 0.38% a year variable (index tracker)
    I will eventually move to a flat fee platform

    Staffsw - good point about arrangement fees, if it weren't for that then it's just a scaled down version of a normal car loan
    I live in a very hilly area, going to work by cycle is 80% walking up hill, on the way back however it's just as quick as the car. I value my time more than the Costa of the car though (have young child)

    Rest assured I will never touch anything that doesn't pay some sort of dividend overall (although the funds can hold non dividend paying stocks within), I will never stock pick or time the market, I would borrow to invest only if it's not marked to market
    • qwert yuiop
    • By qwert yuiop 5th Jan 18, 1:22 PM
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    qwert yuiop
    Car54 -

    more than the Costa of the car
    Originally posted by MatthewAinsworth
    Is that one of those wee Suzuki cappuccinos?
    “What means that trump?” Timon of Athens by William Shakespeare
    • Mercdriver
    • By Mercdriver 5th Jan 18, 1:23 PM
    • 1,677 Posts
    • 1,136 Thanks
    Mercdriver
    The fact that Joey Essex is advertising log book loans should be enough to put anybody off.

    Not only that, if you are intending getting a mortgage having a logbook loan company appearing on your credit history will likely end your dreams of getting a mortgage, similarly to payday loans.

    By the way that Joey Essex advertised product had an interest rate of 190% APR
    • jimjames
    • By jimjames 5th Jan 18, 1:27 PM
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    jimjames
    How are you planning to invest £500 to generate a 12% return?
    Originally posted by wgl2014
    Plenty of options but not guaranteed. If you're in no rush then if you've chosen wisely you can wait until markets pick up should they experience a crash.

    Have you checked the trading and management charges? I suspect they may wipe out any profit on such a small investment. (Or indeed add to the losses.)
    Originally posted by Car 54
    Nope they won't. Many platforms have no fixed charges for buying and selling, just an annual fee. Certainly if you invested 12 months ago you'd have substantially more than 12% return but that's still only £60 on £500 so it won't make you a millionaire.

    If you'd picked this last year your £500 would now be over £700
    http://www.hl.co.uk/shares/shares-search-results/s/scottish-mortgage-it-ordinary-shares-5p
    Last edited by jimjames; 05-01-2018 at 1:29 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • MatthewAinsworth
    • By MatthewAinsworth 5th Jan 18, 1:34 PM
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    MatthewAinsworth
    Mercdriver - I didn't know logbook loans have an adverse effect on credit history, I knew payday loans do. Anyway the rate they seem to have is prohibitive, which is strange considering it has more security than a credit card
    • qwert yuiop
    • By qwert yuiop 5th Jan 18, 2:09 PM
    • 2,287 Posts
    • 1,385 Thanks
    qwert yuiop
    The fact that Joey Essex is advertising log book loans should be enough to put anybody off.

    Not only that, if you are intending getting a mortgage having a logbook loan company appearing on your credit history will likely end your dreams of getting a mortgage, similarly to payday loans.

    By the way that Joey Essex advertised product had an interest rate of 190% APR
    Originally posted by Mercdriver
    190%? Pah! Anyone here use southern railways? I was on the train from gatwick a few weeks back and saw a poster inviting me to !!!8220;get my finances back on track!!!8221;. At APR of a stunning 700%, it seemed like an ideal way to turn your finances into a train wreck.
    “What means that trump?” Timon of Athens by William Shakespeare
    • qwert yuiop
    • By qwert yuiop 5th Jan 18, 2:13 PM
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    qwert yuiop
    Mercdriver - I didn't know logbook loans have an adverse effect on credit history, I knew payday loans do. Anyway the rate they seem to have is prohibitive, which is strange considering it has more security than a credit card
    Originally posted by MatthewAinsworth
    If you don’t pay, they take your car, but do they pursue you for any outstanding money? Is it not like pawning, where it’s the pawn shop taking the risk? In which case, it shouldn’t alter your credit rating.
    “What means that trump?” Timon of Athens by William Shakespeare
    • Herzlos
    • By Herzlos 5th Jan 18, 2:13 PM
    • 7,344 Posts
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    Herzlos
    I'm pretty sure they'll pursue for any shortfall; it'd be stupid not to.
    Mercdriver - I didn't know logbook loans have an adverse effect on credit history, I knew payday loans do. Anyway the rate they seem to have is prohibitive, which is strange considering it has more security than a credit card
    Originally posted by MatthewAinsworth
    It's more security than a credit card, but the costs to get the money back are huge, since the asset weighs over a ton and is mobile. If you default on it, they'll need to spend at least £100 finding and collecting the car, then transport it and sell it at an auction, where it'll go for peanuts. Then there's all the admin and overheads involved in providing the actual loan.

    It might make sense to get £100 until you get paid, using a car worth £1000 as security, but it'd make no sense to lend anything on a car that's probably not going to recoup the recovery costs.

    Logbook loans, like payday loans and cheque cashing centres are all going to be bad for the credit rating as they are tailored purely towards the desperate - if your finances are in good shape you'd have no need to use your cars logbook as security, for instance.
    • Car 54
    • By Car 54 5th Jan 18, 2:20 PM
    • 3,031 Posts
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    Car 54
    If you'd picked this last year your £500 would now be over £700
    http://www.hl.co.uk/shares/shares-search-results/s/scottish-mortgage-it-ordinary-shares-5p
    Originally posted by jimjames
    Yes, and if I'd known what was going to win the Grand National I'd have got £7,500 for my £500.
    • qwert yuiop
    • By qwert yuiop 5th Jan 18, 2:32 PM
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    qwert yuiop
    Yes, and if I'd known what was going to win the Grand National I'd have got £7,500 for my £500.
    Originally posted by Car 54
    You!!!8217;d probably be a lot better gambling on some political event where the outcome is more obvious. For instance, Hillary Clinton was never going to lose and there was no way brexit was going to win.

    There!!!8217;s where I went wrong in life - I failed to put everything on a trump/brexit double. Damn. The regret.
    “What means that trump?” Timon of Athens by William Shakespeare
    • MatthewAinsworth
    • By MatthewAinsworth 5th Jan 18, 3:03 PM
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    MatthewAinsworth
    Car54 -
    . Yes, and if I'd known what was going to win the Grand National I'd have got £7,500 for my £500.
    Choosing a fund isn't gambling though, because the odds are in your favour, mathematically you expect a profit and have good reason to, it's risky of course, and some do better than others, but most equities generally have done very well over history - if you're diversified and long term then you're relying more on probability than luck
    • Lucky Duck
    • By Lucky Duck 5th Jan 18, 3:04 PM
    • 173 Posts
    • 91 Thanks
    Lucky Duck
    Or, indeed, Leicester to win the Premiership!
    • qwert yuiop
    • By qwert yuiop 5th Jan 18, 3:57 PM
    • 2,287 Posts
    • 1,385 Thanks
    qwert yuiop
    Car54 -

    Choosing a fund isn't gambling though, because the odds are in your favour, mathematically you expect a profit and have good reason to, it's risky of course, and some do better than others, but most equities generally have done very well over history - if you're diversified and long term then you're relying more on probability than luck
    Originally posted by MatthewAinsworth
    Not really. A lot never make anything. Also we haven’t had a crash in a while and there’s been a steady rise for quite some time. There will be a reversal some time.
    In a gamble, you could occasionally do well with a structured bet. In a Wimbledon tennis final, someone is going to win. It’s often possible to bet on Serena with one company and Venus at another ( for example), leaving you in a position where you either break even or lift a smaller profit. Apparently.
    “What means that trump?” Timon of Athens by William Shakespeare
    • Tarambor
    • By Tarambor 5th Jan 18, 4:05 PM
    • 3,048 Posts
    • 2,212 Thanks
    Tarambor
    Don't bother. You've got a £500 car at best. You could just put £100 into VLS a month and hit that £500 in no time and have no interest to pay.
    • MatthewAinsworth
    • By MatthewAinsworth 5th Jan 18, 4:45 PM
    • 3,079 Posts
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    MatthewAinsworth
    Qwertyuiop - the ones that never make anything usually have concentrated their risk in individual companies and time the market, something nobody can do well
    • Mercdriver
    • By Mercdriver 5th Jan 18, 5:00 PM
    • 1,677 Posts
    • 1,136 Thanks
    Mercdriver
    Qwertyuiop - the ones that never make anything usually have concentrated their risk in individual companies and time the market, something nobody can do well
    Originally posted by MatthewAinsworth
    Do you actually have any knowledge in this area? Or are you naïvely believing what certain agents are telling you. If you could make a fortune from a small investment, why would you not avoid the hassle of a short term expensive loan (and there's nothing else when it comes to logbook loans) and either borrow from a mainstream lender and pay it off once you've made your fortune or from a friend who you pay back with interest or partner with a friend and split the proceeds.

    I see a over reliance on the ups and a dismissal of the downs of the financial markets.

    I can see tears on the horizon if you sink money into this above your head. In short if you need to borrow to make this investment, can you actually afford to take the risk?

    It's no good saying that you won't lose money, and the risk doesn't apply to you. To make a large fortune, you have to be less cautious and NOT spread your risks. There is no such thing as a risk free investment.
    • jimjames
    • By jimjames 5th Jan 18, 5:16 PM
    • 12,653 Posts
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    jimjames
    Not really. A lot never make anything. Also we haven’t had a crash in a while and there’s been a steady rise for quite some time.
    .
    Originally posted by qwert yuiop
    Both parts are just not true. We're straying away from cars here but there have been drops over the last few years but recovered again very quickly. It's also untrue that a lot of funds never make anything. Can you provide any evidence or links for your claim?

    There will be a reversal some time.
    .
    Originally posted by qwert yuiop
    Of course there will be, that's the nature of investing. That doesn't mean you'll lose money - just that the value might be lower at certain points. Even with a massive crash like 2008/9 the markets had recovered within 2 years
    Remember the saying: if it looks too good to be true it almost certainly is.
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