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  • FIRST POST
    • joshross306
    • By joshross306 13th Jul 18, 11:03 AM
    • 5Posts
    • 0Thanks
    joshross306
    Loan for my dream car at 18!
    • #1
    • 13th Jul 18, 11:03 AM
    Loan for my dream car at 18! 13th Jul 18 at 11:03 AM
    I've been driving my little Honda Civic for the past year and finally coming up to that mighty 1 years of no claims bonus, ace!

    I've been paying for my insurance monthly which started at 143 a month and ended up at over 200 a month. This is due to the current wave of "safe driver telematics boxes" which are a HUGE SCAM. But it was all I could get.

    Anyway I've been saving up for something with a little more personality, being a car guy I've always believed life's too short to drive boring cars. And my original choice is way too old to be driving everyday. After all it is a classic now (1993 Toyota MR2 SW20 GT T-bar).

    That's when I stumbled across the possibility of buying one of my dream cars. A 2013 Subaru BRZ also known as the GT86 or FRS. The car is 8995, I have around 1500 to put towards it upfront. I also have enough saved on top of that to pay the insurance for the year (Roughly 1000 which is 1000 cheaper than the civic) rather than monthly. The road tax is only 6 a month more than I pay now. My current car and the BRZ also get similar MPG aswell!

    The problem:
    I have little to no credit history, I have a gym membership, phone contract and obviously the insurance I've been paying monthly for the past year to back me up. Where should I go for a loan this size? I will be trying my bank (Barclays) as they do loans and I think I may have a better chance with them.

    The biggest advantage is for me, If I got this loan my outgoings would be lower than they are now paying my current car bills and I'd have my dream car at 18? Surely that's worth it.
    In regards to depreciation, I would imagine the car to drop a further 3500 during the loan (5 years) which is fine. Cars are a passion for me not just a utility.

    Any advice would be appreciated!
Page 1
    • MallyGirl
    • By MallyGirl 13th Jul 18, 11:34 AM
    • 3,034 Posts
    • 8,055 Thanks
    MallyGirl
    • #2
    • 13th Jul 18, 11:34 AM
    • #2
    • 13th Jul 18, 11:34 AM
    do you earn enough to support a loan of this size?
    • jimbo26
    • By jimbo26 13th Jul 18, 11:41 AM
    • 526 Posts
    • 319 Thanks
    jimbo26
    • #3
    • 13th Jul 18, 11:41 AM
    • #3
    • 13th Jul 18, 11:41 AM

    I've been paying for my insurance monthly which started at 143 a month and ended up at over 200 a month. This is due to the current wave of "safe driver telematics boxes" which are a HUGE SCAM. But it was all I could get.
    Originally posted by joshross306
    More likely to do with your driving, your post smacks of boy racer, and the fact your insurance has gone up with a black box supports this view. I have two daughters both had black boxes, one drove sensibly and actually got money back, the other drove badly and paid more. Sensible daughter now pays a lot less for her insurance with a nice NCB, the other daughter is still paying 1,000's a year with no NCB, and six points on her licence.

    As you are someone who has a less than ideal driving style I would recommend keeping a cheap reliable car, which if it gets a knock, it won't really matter. If you buy an expensive rear wheel drive car it will end up in a field or the barriers of your local McDonald's.

    I suspect you will disagree and go ahead anyway, so make sure you take out GAP insurance to cover the finance shortfall when the car is written off.
    Last edited by jimbo26; 13-07-2018 at 12:42 PM.
    • foxy-stoat
    • By foxy-stoat 13th Jul 18, 11:42 AM
    • 2,981 Posts
    • 1,682 Thanks
    foxy-stoat
    • #4
    • 13th Jul 18, 11:42 AM
    • #4
    • 13th Jul 18, 11:42 AM
    Your 18 and the insurance is 1000 for a BRZ? At least you have "dream" in the title of this thread.

    Wish you all the best of lucks.
    • Sncjw
    • By Sncjw 13th Jul 18, 12:24 PM
    • 1,952 Posts
    • 1,150 Thanks
    Sncjw
    • #5
    • 13th Jul 18, 12:24 PM
    • #5
    • 13th Jul 18, 12:24 PM
    I would just continue to save as your going to be paying more for the car than it!!!8217;s worth due to interest.
    • MEM62
    • By MEM62 13th Jul 18, 1:09 PM
    • 1,786 Posts
    • 1,388 Thanks
    MEM62
    • #6
    • 13th Jul 18, 1:09 PM
    • #6
    • 13th Jul 18, 1:09 PM
    I've been driving my little Honda Civic for the past year and finally coming up to that mighty 1 years of no claims bonus, ace!
    Well done! :-)

    I've been paying for my insurance monthly which started at 143 a month and ended up at over 200 a month. This is due to the current wave of "safe driver telematics boxes" which are a HUGE SCAM. But it was all I could get.
    Scam? How so? As I understand it, drive cautiously and your premium is lower than it would be if you drove like a right flange.

    Anyway I've been saving up for something with a little more personality, being a car guy I've always believed life's too short to drive boring cars. And my original choice is way too old to be driving everyday. After all it is a classic now (1993 Toyota MR2 SW20 GT T-bar).
    It's also too short to spend years paying off a car that you will become bored with quickly. As a self-confessed 'car guy' you are likely to become a serial car buyer so you will want to change your car more frequently than most. You won't be able to if you have years of payments left on the last one. Depreciation for you guys is bad enough so don't add high amounts of interest to your losses.

    That's when I stumbled across the possibility of buying one of my dream cars. A 2013 Subaru BRZ also known as the GT86 or FRS. The car is 8995, I have around 1500 to put towards it upfront. I also have enough saved on top of that to pay the insurance for the year (Roughly 1000 which is 1000 cheaper than the civic) rather than monthly. The road tax is only 6 a month more than I pay now. My current car and the BRZ also get similar MPG aswell!
    How much do you save each month? When you have shiny car syndrome of course it is affordable - it always is! If you do not have considerably more cash left over at the end of the month (the day before payday) than the payments would cost you it is not affordable. And what about your reserves for repairs and mechanical failures. Subaru's are not known to be purchased and driven gently by little old ladies. They are ragged on a regular basis and you can expect things to be worn out.

    The problem:
    I have little to no credit history, I have a gym membership, phone contract and obviously the insurance I've been paying monthly for the past year to back me up. Where should I go for a loan this size? I will be trying my bank (Barclays) as they do loans and I think I may have a better chance with them.
    No, the problems is not enough money in the bank.

    The biggest advantage is for me, If I got this loan my outgoings would be lower than they are now paying my current car bills and I'd have my dream car at 18? Surely that's worth it.
    Ask yourself that question when you are missing nights out with your mates and holidays because you are paying for your car. It will happen.
    In regards to depreciation, I would imagine the car to drop a further 3500 during the loan (5 years) which is fine. Cars are a passion for me not just a utility.
    Depreciation in the least of your worries.
    Any advice would be appreciated!
    Originally posted by joshross306
    Advice? Easy - you cannot afford it.
    Last edited by MEM62; 13-07-2018 at 1:15 PM.
    • DCFC79
    • By DCFC79 13th Jul 18, 1:13 PM
    • 32,901 Posts
    • 20,721 Thanks
    DCFC79
    • #7
    • 13th Jul 18, 1:13 PM
    • #7
    • 13th Jul 18, 1:13 PM
    Another similar post to 1 what was posted recently. Do parents not give kids the advice that's needed.

    My advice OP is to save and use your own money, you will cherish it more plus you won't be paying more than the amount you borrowed.
    • DrEskimo
    • By DrEskimo 13th Jul 18, 1:19 PM
    • 285 Posts
    • 207 Thanks
    DrEskimo
    • #8
    • 13th Jul 18, 1:19 PM
    • #8
    • 13th Jul 18, 1:19 PM
    As a general rule of thumb, I am apposed to borrowing money to spend on a car, but especially if the APR is high. There is 'good debt' and 'bad debt'. A mortgage or a student loan I consider 'good debt' (generally), car loans are firmly in the 'bad debt' territory...!

    However, my advice would be to work out what the best loan you can get, and what that monthly payment will be. Then diligently put that money away in a regular savings account (might as well try for one with a high interest return if possible) for at least a year.

    See how you get on budget wise with that amount of income taken away. If in a years time you still think it's a good idea, then great news, you have a greater amount saved, so can borrow less, the prices of the car will be lower, and your insurance will be cheaper!

    If you struggle, even better news! You have saved money and importantly saved yourself from a possibly catastrophic financial error early in your life!
    • jimbo26
    • By jimbo26 13th Jul 18, 1:20 PM
    • 526 Posts
    • 319 Thanks
    jimbo26
    • #9
    • 13th Jul 18, 1:20 PM
    • #9
    • 13th Jul 18, 1:20 PM
    Maybe they did. Both my kids got the same advice. One took it on board, one didn't. You can only offer advice.
    • Nasqueron
    • By Nasqueron 13th Jul 18, 1:57 PM
    • 5,929 Posts
    • 3,587 Thanks
    Nasqueron
    You pay 2400 rather than 1716 due to driving like a dingus (note, it's not a scam, you are told up front that you will pay more if you drive badly) for an old Civic. With 1 years no claims and at 18 you reckon you will only be paying 1000 to cover a 5 year old high spec sports car. Yeah somehow I doubt that. Can the kids go back to school soon?
    • joshross306
    • By joshross306 13th Jul 18, 2:12 PM
    • 5 Posts
    • 0 Thanks
    joshross306
    More likely to do with your driving, your post smacks of boy racer, and the fact your insurance has gone up with a black box supports this view. I have two daughters both had black boxes, one drove sensibly and actually got money back, the other drove badly and paid more. Sensible daughter now pays a lot less for her insurance with a nice NCB, the other daughter is still paying 1,000's a year with no NCB, and six points on her licence.

    As you are someone who has a less than ideal driving style I would recommend keeping a cheap reliable car, which if it gets a knock, it won't really matter. If you buy an expensive rear wheel drive car it will end up in a field or the barriers of your local McDonald's.

    I suspect you will disagree and go ahead anyway, so make sure you take out GAP insurance to cover the finance shortfall when the car is written off.
    Originally posted by jimbo26
    I appreciate your concerns on this matter but from a very young age I've been around high horsepower, typically RWD cars. I myself have had an E36 BMW 323i with a 2.8 conversion as a track day car. I am well aware of the risks and dangers of driving RWD yet have found it much more pleasurable than typical FWD.

    The dreaded 'Blackbox" is offered by my insurer Ingenie. These have a terrible reputation I was unaware of. They increase premiums for no apparent reason. I have contacted them several times on the matter and their simple answer is my driving is "inadequate"?

    People are too quick to assume age = driving skill this is NOT the case. Look at the British Drift Championship. A 16 year old is currently ranking high in a 600 horsepower S13 Silvia!

    I will admit that too many people my age are being idiots on the road and it's led to simple minded folk like yourself jumping to the conclusion that all young car enthusiasts or "boy racers" as you call them are alike.

    PS. Not a massive fan of McDonalds anyway
    • joshross306
    • By joshross306 13th Jul 18, 2:14 PM
    • 5 Posts
    • 0 Thanks
    joshross306
    You pay 2400 rather than 1716 due to driving like a dingus (note, it's not a scam, you are told up front that you will pay more if you drive badly) for an old Civic. With 1 years no claims and at 18 you reckon you will only be paying 1000 to cover a 5 year old high spec sports car. Yeah somehow I doubt that. Can the kids go back to school soon?
    Originally posted by Nasqueron
    I was also surprised at how bad insurance rates are. It is due to the fact the BRZ is a more modern and therefore safer car. Also not many 18 year olds have them so there isn't any out there to crash. There's plenty of civics out there to get crashed hence the insurance is so high. It doesn't just go off engine displacement and insurance group now.
    • Inner Zone
    • By Inner Zone 13th Jul 18, 2:19 PM
    • 2,355 Posts
    • 1,365 Thanks
    Inner Zone
    I appreciate your concerns on this matter but from a very young age I've been around high horsepower, typically RWD cars. I myself have had an E36 BMW 323i with a 2.8 conversion as a track day car. I am well aware of the risks and dangers of driving RWD yet have found it much more pleasurable than typical FWD.

    The dreaded 'Blackbox" is offered by my insurer Ingenie. These have a terrible reputation I was unaware of. They increase premiums for no apparent reason. I have contacted them several times on the matter and their simple answer is my driving is "inadequate"?

    People are too quick to assume age = driving skill this is NOT the case. Look at the British Drift Championship. A 16 year old is currently ranking high in a 600 horsepower S13 Silvia!

    I will admit that too many people my age are being idiots on the road and it's led to simple minded folk like yourself jumping to the conclusion that all young car enthusiasts or "boy racers" as you call them are alike.

    PS. Not a massive fan of McDonalds anyway
    Originally posted by joshross306

    Is it getting dark in here and does it matter!
    • joshross306
    • By joshross306 13th Jul 18, 2:19 PM
    • 5 Posts
    • 0 Thanks
    joshross306
    As a general rule of thumb, I am apposed to borrowing money to spend on a car, but especially if the APR is high. There is 'good debt' and 'bad debt'. A mortgage or a student loan I consider 'good debt' (generally), car loans are firmly in the 'bad debt' territory...!

    However, my advice would be to work out what the best loan you can get, and what that monthly payment will be. Then diligently put that money away in a regular savings account (might as well try for one with a high interest return if possible) for at least a year.

    See how you get on budget wise with that amount of income taken away. If in a years time you still think it's a good idea, then great news, you have a greater amount saved, so can borrow less, the prices of the car will be lower, and your insurance will be cheaper!

    If you struggle, even better news! You have saved money and importantly saved yourself from a possibly catastrophic financial error early in your life!
    Originally posted by DrEskimo
    Thank you for the advice! This site mentions cars as a good debt? Anyway, I appreciate the genuine advice rather than just jumping on the "you can't have that car you're too young" bandwagon same as everyone.
    • joshross306
    • By joshross306 13th Jul 18, 2:22 PM
    • 5 Posts
    • 0 Thanks
    joshross306
    Your 18 and the insurance is 1000 for a BRZ? At least you have "dream" in the title of this thread.

    Wish you all the best of lucks.
    Originally posted by foxy-stoat
    Surprisingly yes
    • JessyRM
    • By JessyRM 13th Jul 18, 2:36 PM
    • 44 Posts
    • 46 Thanks
    JessyRM
    Can I ask what your financial situation is? are you working full time and on a wage that can support this loan?

    I'm going to agree with other posters, it doesn't sound like a good idea. At your age until about 25 I had cheap run arounds, I wouldn't dream of taking on that kind of debt at 18.

    If your current car is not suitable I would save a bit longer and get a moderately priced car of around 3-4k paid for in cash. You can still get something decent and will be paying a lot less for insurance.

    I'm not going to assume you are driving badly or can't handle a car like that because of your age but unfortunately that is how a lot other people will think, insurers included.
    • DrEskimo
    • By DrEskimo 13th Jul 18, 2:37 PM
    • 285 Posts
    • 207 Thanks
    DrEskimo
    Thank you for the advice! This site mentions cars as a good debt? Anyway, I appreciate the genuine advice rather than just jumping on the "you can't have that car you're too young" bandwagon same as everyone.
    Originally posted by joshross306
    It does...??

    How odd, do you have a link? Financing a depreciating asset that serves no real purpose in improving productivity (i.e. income/wealth) is hard to consider 'good'...!

    I get it BTW. I financed a high price performance car at 27....it's one of the few regrets I have. Thankfully I was/am in a good position financially (and the insurance was only 350...!) so it hasn't impacted me at all, but I still regret wasting my money on it....

    Next 5-years are IMO pretty crucial in setting yourself up well financially. Concentrate on your career and importantly saving for a house deposit! Your future self will thank you
    • jimbo26
    • By jimbo26 13th Jul 18, 2:39 PM
    • 526 Posts
    • 319 Thanks
    jimbo26
    I will admit that too many people my age are being idiots on the road and it's led to simple minded folk like yourself jumping to the conclusion that all young car enthusiasts or "boy racers" as you call them are alike.
    Originally posted by joshross306
    Nope, it was the fact your insurance premiums has been increased by almost 50% due to poor driving.

    Both my kids were with Ingenie and it is made perfectly clear that your premiums will be reduced if you drive well, and increased if you don't. Ingenie also give you regular updates on your driving style and warn you if your speed is too high, or cornering is bad etc.

    Anyway you've done a bit of driving on a track so clearly an expert driver so the only reason for your insurance going up is that it is a scam.

    Sadly the cemeteries are full of young drivers with that attitude (and their innocent victims).

    Well good luck, and don't forget to factor in the GAP insurance.
    Last edited by jimbo26; 13-07-2018 at 2:47 PM.
    • RichardD1970
    • By RichardD1970 13th Jul 18, 3:08 PM
    • 3,062 Posts
    • 4,548 Thanks
    RichardD1970
    I appreciate your concerns on this matter but from a very young age I've been around high horsepower, typically RWD cars. I myself have had an E36 BMW 323i with a 2.8 conversion as a track day car.(Bingo) I am well aware of the risks and dangers of driving RWD yet have found it much more pleasurable than typical FWD.

    How much is the insurance on that?

    The dreaded 'Blackbox" is offered by my insurer Ingenie. These have a terrible reputation I was unaware of. They increase premiums for no apparent reason. I have contacted them several times on the matter and their simple answer is my driving is "inadequate"?

    People are too quick to assume age = driving skill this is NOT the case.Look at the British Drift Championship. A 16 year old is currently ranking high in a 600 horsepower S13 Silvia!

    That doesn't equate to being a good driver on the roads with 1000's of other people all jostling for space.

    I will admit that too many people my age are being idiots on the road and it's led to simple minded folk like yourself jumping to the conclusion that all young car enthusiasts or "boy racers" as you call them are alike.

    But your black box confirms you are. And in a Honda as well

    PS. Not a massive fan of McDonalds anyway
    Originally posted by joshross306

    It really does seem to be getting Darker now
    • spadoosh
    • By spadoosh 13th Jul 18, 4:14 PM
    • 5,733 Posts
    • 7,866 Thanks
    spadoosh
    My next door neighbour has the SW20 MR2. He uses it for track days. His daily ride is a fiesta.

    He used to drive it daily but as you say it gets less and less practical. He had the choice to get rid and go with something modern and fast. He chose the fiesta and the reason he gave was a pretty simple one...

    "Whats the point in all that HP when i spend 90% of my time crawling 3ft behind someone. "

    If you are passionate about cars, spend your money getting under them or on the track. Its way more fun than sitting in rush hour on a friday night knowing you cant go out because the loan repayment went out that day.

    Its annoying AF being told by old people how and where you should enjoy your money. You said earlier about age doesnt equal skill youre right, it doesnt. But age = experience. And most people who are passionate about cars that financed them at a young age generally dont have many good thigns to say about that time.

    Consider how long youve wanted this dream car (cant be that long its not that old of a model) your decision to buy this car on finance has every chance of effecting your dreams that you will have in 10-15 years time.

    The most fun car on uk roads is a car you dont care about (usually hire cars). Mine was a 97 hyundai elantra for 200. Scrapped it for 250 because the car tax was something like 250 for 6 months. You had to get in from the passenger side. But what a car, fond memories of our short time together. (the reason i had to buy that car was because my OH spent 12k for a car that was worth about 3k when she had finished paying off the finance.)
    Don't be angry!
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