Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • MatthewAinsworth
    • By MatthewAinsworth 4th Jan 18, 10:40 PM
    • 3,079Posts
    • 1,223Thanks
    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 4
    • qwert yuiop
    • By qwert yuiop 7th Jan 18, 5:32 PM
    • 2,287 Posts
    • 1,385 Thanks
    qwert yuiop
    I!!!8217;m impressed at your confidence if you expect to produce a greater return on investment than the loan shark level interest rates you propose paying.
    “What means that trump?” Timon of Athens by William Shakespeare
    • MatthewAinsworth
    • By MatthewAinsworth 7th Jan 18, 7:55 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    Qwertyuiop - I propose paying no more than 10%, reluctant even at 8%, I wouldn't accept the kind of rates it's been revealed that logbook loans tend to charge
    • qwert yuiop
    • By qwert yuiop 7th Jan 18, 8:27 PM
    • 2,287 Posts
    • 1,385 Thanks
    qwert yuiop
    Even that strikes me as optimistic.
    “What means that trump?” Timon of Athens by William Shakespeare
    • MatthewAinsworth
    • By MatthewAinsworth 7th Jan 18, 9:06 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    It is, but not unreasonable for the statistical average of 100 years of small cap (12%) - odds of losing out somewhat do exist but for such a small loan it would be affordable
    • wgl2014
    • By wgl2014 7th Jan 18, 10:52 PM
    • 653 Posts
    • 418 Thanks
    wgl2014
    It is, but not unreasonable for the statistical average of 100 years of small cap (12%) - odds of losing out somewhat do exist but for such a small loan it would be affordable
    Originally posted by MatthewAinsworth
    ....whilst also making the potential returns tiny?
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jan 18, 5:25 AM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    Yes but a mildly favourable bet, one you can afford on a small amount
    • arcon5
    • By arcon5 8th Jan 18, 6:51 AM
    • 13,576 Posts
    • 8,619 Thanks
    arcon5
    You give some good reasons financially for driving a banger instead of a newer Car, however the fact your here looking for advice on taking out finance against it suggests you don't drive one by choice but by necessity.

    None the less you now know log book loans are part of the high risk high interest market
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jan 18, 10:33 AM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    Arcon - I'm looking to borrow in general because I'm an investor and I hope to profit from money that isn't mine, I'm not adverse to having debt, i.e. mortgage and 0% credit cards if I can outperform them
    • Graham_Devon
    • By Graham_Devon 8th Jan 18, 2:07 PM
    • 53,305 Posts
    • 115,351 Thanks
    Graham_Devon
    Arcon - I'm looking to borrow in general because I'm an investor and I hope to profit from money that isn't mine, I'm not adverse to having debt, i.e. mortgage and 0% credit cards if I can outperform them
    Originally posted by MatthewAinsworth
    Good luck.

    Rather you than me. The risks if you are unable to carry out this mystical trick of beating most other investors have the potential to destroy you (and others) financially for the rest of your life through bankruptcy.

    The rewards, from everything you have posted are miniscule.
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jan 18, 3:03 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    I don't need to beat other investors, or the index, just beat the debt interest, that's all. Debt is dangerous, and I use it with respect to that danger, for example I won't use a margin loan because I don't want the investment to be marked to market, I don't do buy to let because I can't yet afford that level of concentrated risk
    • arcon5
    • By arcon5 8th Jan 18, 3:17 PM
    • 13,576 Posts
    • 8,619 Thanks
    arcon5
    The idea of using other people's money to invest is it's their capital at risk. Whether you win or lose you have to pay the money back so no point paying to borrow money if you can instead use free money of your own
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jan 18, 3:59 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    Arcon - the point is that I can make a return now on money before I earn it, if I wait to earn it I will forgot some investment growth

    That's partly why people use a mortgage rather than wait to save up the entire house price in cash - if you wait the price will probably rise and not only do you miss out on the rise but you pay more
    • IanMSpencer
    • By IanMSpencer 8th Jan 18, 6:04 PM
    • 1,462 Posts
    • 1,080 Thanks
    IanMSpencer
    Arcon - the point is that I can make a return now on money before I earn it, if I wait to earn it I will forgot some investment growth

    That's partly why people use a mortgage rather than wait to save up the entire house price in cash - if you wait the price will probably rise and not only do you miss out on the rise but you pay more
    Originally posted by MatthewAinsworth
    Investments can go down as well as up. You obviously are not of an age to have seen what happens to investments over the long term.

    If you base your investment on a loan which is because you have no other assets to depend on to invest, then when that loan matures you potentially have to cease your investment. If that coincides with a problem in the market (and who wants to be gambling on where the stock market will be in 15 months time ATM) you may find yourself having to liquidate at the bottom of the market to repay the loan because you have lost money on your investments so have to eat into other investments you've made, however astutely you thought you'd invested. Any serious investor doesn't worry about the fluctuations of a year, they accept there will be lean years but look to outfox the market by relying on professional people who make it their business literally to beat the market, either directly or though their pension scheme or similar.
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jan 18, 6:10 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    Ianmspencer - you assume I have no other assets, that's wrong, as I've said I have emergency cash and the idea of the borrowing is to liberate emergency cash to invest, and this borrowing will be very limited in nature such that my wages can easily handle it

    I also don't really rate active management, I index
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jan 18, 6:12 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    I can accept that with short term borrowing there's risk of loss, I budget for that loss, but probability favours doing it
    • AdrianC
    • By AdrianC 8th Jan 18, 6:22 PM
    • 17,602 Posts
    • 15,964 Thanks
    AdrianC
    So much downside, so little benefit.
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jan 18, 10:07 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    We're talking such small amounts that its not unpalatable risk for a small expected profit
    And its hypothetical anyway since I won't be able to find that rate secured on a banger
    • StaffsSW
    • By StaffsSW 9th Jan 18, 11:08 AM
    • 5,455 Posts
    • 5,573 Thanks
    StaffsSW
    If it's such small amounts, firstly, why bother financing, as you're not going to get any sort of leverage on investments with £500, or less, and secondly, you would want to lever as much as your own funds in the early stages to grow a small amount into something larger that would give you the control over a much larger asset base.

    When you are talking £5000, or £50000, then start looking at bigger pictures, but in the grand scheme of investments, £500 really is nothing besides a bit of pin money to have fun with while you get on with your real job.
    <--- Nothing to see here - move along --->
    • MatthewAinsworth
    • By MatthewAinsworth 9th Jan 18, 1:10 PM
    • 3,079 Posts
    • 1,223 Thanks
    MatthewAinsworth
    You're right staffs that its too little, but I'd be scared of bigger leverages, I respect the danger - and it seriously sways me away from buy to let since you can simply wait out an equities crash in a way you can't wait out a property one

    To me playing with small amounts is more for fun than serious work. This is all hypothetical and unlikely to happen
    • AdrianC
    • By AdrianC 9th Jan 18, 1:21 PM
    • 17,602 Posts
    • 15,964 Thanks
    AdrianC
    You're right staffs that its too little, but I'd be scared of bigger leverages, I respect the danger - and it seriously sways me away from buy to let since you can simply wait out an equities crash in a way you can't wait out a property one

    To me playing with small amounts is more for fun than serious work. This is all hypothetical and unlikely to happen
    Originally posted by MatthewAinsworth
    ...and that says everything.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,195Posts Today

8,253Users online

Martin's Twitter