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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 2
    • gycraig
    • By gycraig 13th Jul 18, 5:44 PM
    • 474 Posts
    • 376 Thanks
    gycraig
    Test drove one and found it an absolute dream of a car despite the smaller engine.

    Itís not what Iíd of done at 18 but tbh posters are being pretty hash, itís not a massively fast performance car itís slower than most 2 litre diesels.

    I had a similar choice and went for a older mr2 roadster and itís cost me thousands in brake calipers o2 sensors catalytic converter faults etc.

    When companies are offering finance for pretty much nothing 18 year olds will buy cars like this and tbh itís a better solution than driving a 1500 quid car thatís constantly in the garage.

    What sort of money are you earning op ? Remember you wonít always wanna live with mum and dad
    • DD265
    • By DD265 13th Jul 18, 6:14 PM
    • 1,548 Posts
    • 3,436 Thanks
    DD265
    I wouldn't.

    At 16 my parents bought me a horse - he cost anything from £350 to £600+ a month to keep (never mind large one-off expenses, luckily he was insured and that covered major vets bills) until I lost him 13 years later. Now at 18 I wasn't paying his full costs; I gradually took those on but by the end of university I was paying everything. I am glad I had him and I wouldn't have given him up for the world, I just know that I would own/be in a position to own a house by now (30) if I hadn't had him.

    I worked part time all through university and I had a placement year where I earned a reasonable salary, but having such a large expense has really held me back because being honest I couldn't afford the lifestyle I was living. Not necessarily expensive nights out every week, but even the little things added up.

    I graduated and because I'd maxxed out my credit card and overdraft the bank consolidated it with a loan (cheers guys) which started that cycle again. I got a car on PCP in 2014 when I changed jobs and my 16 year old Fiesta wasn't up to the commute - the increase in salary was basically lost to that. I finally managed to move out of my parents, in with my now husband, in 2015. I got rid of that car last year as well and bought a £3.5k Golf that's been a great buy. I still had to put £2k of that on the credit card but it's interest free.

    I'm now paying off a (different) loan and two credit cards - I can attribute some of that to the car and our wedding. I am in control of my debt now and I understand it. I know how it works, why I've got it and I have a plan to pay it down. When I was 18-25 I don't think I ever realised that it wasn't my money, and I've never had a problem getting credit which kind of doesn't help.

    I would hate to see somebody else go through similar if they have a choice; it really, really sucks when you have too much month at the end of the money.
    • Sncjw
    • By Sncjw 13th Jul 18, 6:26 PM
    • 1,959 Posts
    • 1,152 Thanks
    Sncjw
    What is your income? You haven!!!8217;t mentioned that yet
    • fred246
    • By fred246 13th Jul 18, 8:09 PM
    • 1,185 Posts
    • 670 Thanks
    fred246
    "life's too short to drive boring cars" As long as he only kills himself. It's when they kill innocent people just going about their daily lives that it gets really awful.
    • dealer wins
    • By dealer wins 14th Jul 18, 6:23 AM
    • 6,086 Posts
    • 11,790 Thanks
    dealer wins
    OP sadly another person who will in all probability go through life paying £1000s and £1000s in interest.
    Choose life
    • prowla
    • By prowla 14th Jul 18, 7:40 AM
    • 10,104 Posts
    • 8,332 Thanks
    prowla
    Hmmm - the BRZ seems quite a nice little car and is quite pokey with a 200bhp engine and 6.x second 0-60.

    Subaru have a great reliability record, but I cant say whether the £8k price for a 5 year old £20k car is appropriate.

    You can have a fast car and drive it enjoyably and courteously on the roads; the turn of speed can be safer in some cases and the handling certainly can.

    Or you can drive like the roads are your personal racetrack.

    It is rather important to be able to separate the two and going to track days is an ideal way to get to appreciate the difference.

    My suggestion is to consider the way you drive next time you go out and make a note of the following:
    • Do you speed?
    • Do you squeal your tyres often (or at all)?
    • Do you tend to run through amber traffic lights?
    If the answer is yes to those, then maybe some of the other posters here have a point and a more powerful car is a bad idea at this point in time.


    As for the money, £8k is not a huge amount, but if you are on a relatively low income you may find that it takes over your life a bit. Factor in insurance and running costs and it all adds up.



    The other thing I noticed was the mention of track days - they are a great (and responsible!) way of separating performance driving from being on the public roads; rather than sneer at it, I would suggest that appreciating the difference is laudible.


    Good luck in making the choice which is right for you.
    • Enterprise 1701C
    • By Enterprise 1701C 14th Jul 18, 7:55 AM
    • 20,421 Posts
    • 215,761 Thanks
    Enterprise 1701C
    Seriously, you are complaining about the insurance on a Honda and want to buy a classic boy racer Subaru!

    You have more than the price of the car to consider, have you even checked to see if anyone will insure you on the Subaru yet? Have you checked what it will cost you if they do?
    What is this life if, full of care, we have no time to stand and stare
    • Robin9
    • By Robin9 14th Jul 18, 7:59 AM
    • 3,275 Posts
    • 2,133 Thanks
    Robin9
    Seriously, you are complaining about the insurance on a Honda and want to buy a classic boy racer Subaru!

    You have more than the price of the car to consider, have you even checked to see if anyone will insure you on the Subaru yet? Have you checked what it will cost you if they do?
    Originally posted by Enterprise 1701C

    According to the OP in #1 £1000
    Never pay on an estimated bill
    • Enterprise 1701C
    • By Enterprise 1701C 14th Jul 18, 8:13 AM
    • 20,421 Posts
    • 215,761 Thanks
    Enterprise 1701C
    According to the OP in #1 £1000
    Originally posted by Robin9
    Something weird about that!
    What is this life if, full of care, we have no time to stand and stare
    • DCFC79
    • By DCFC79 14th Jul 18, 8:20 AM
    • 32,943 Posts
    • 20,743 Thanks
    DCFC79
    Something weird about that!
    Originally posted by Enterprise 1701C

    Yes its expensive, eye watering amounts.


    Just done a dummy quote, cheapest is £2904 with Admiral little box and the highest is 8982 with Bell insurance. Took a guess its a manual, petrol, 2 door and OP is employed. Quotes are with a £500 excess, changing the excess doesnt reduce the price but increases them, the 1 from Bell is now £9269.
    Only 5 insurers were willing to quote, I used comparethemeerket for my research but I suspect other comparison sites will be the same.
    Last edited by DCFC79; 14-07-2018 at 8:38 PM.
    • madvicker
    • By madvicker 15th Jul 18, 12:39 AM
    • 146 Posts
    • 100 Thanks
    madvicker
    I think I found the car you are looking at on Autotrader. 125,000 miles is not a good starting point for a car that you are financing for the next 5 years. What if the engine breaks down and you need to replace it?

    I also did insurance quotes - for me at almost 30 with 3 years NCB (not from the UK) it would be £600 insurance. If I was 19 with 1 year NCB it would be £6,300. Lol. I'm doubting the veracity of the claims you could get it for £1000.
    Last edited by madvicker; 15-07-2018 at 10:33 AM.
    • haras_nosirrah
    • By haras_nosirrah 15th Jul 18, 7:13 AM
    • 1,598 Posts
    • 2,848 Thanks
    haras_nosirrah
    I am curious where you got your insurance quote. That seems very low for your age and car type.

    I am afraid I am going to be one of those annoying adults who is far too sensible but you should take heed.

    In my job I help people buy houses. Recently I had a couple who were looking to buy a shared ownership property and had a 15% deposit gifted. However they also had 2 car loans, significant amount of credit card debt and had a baby. The only way we could fit affordability is to get rid of the credit card debt and put down a 5% deposit but because they lived at home the lender said no due to getting into so much debt at a young age and while living at home that they needed to prove themselves for 12 months by living within their means and clearing down the debt before the lender would consider them for a mortgage on the basis that they had run up so much debt while not having much outgoings. It cost them the house. Despite fitting affordability the lender had no faith they wouldn't run up the credit cards again based on previous history.

    What I am saying is you get a loan to buy a car, you get a loan to pay the insurance, car goes wrong and you get a loan to repair it (none of it cheap credit due to your credit score) you also want to go out with your friends and go on holiday, go to uni. All fine while you live at home but what about when you want to move out and the debt holds you back?

    If you want to get a car and have the funds to do so then by all means do. If having to borrow funds then be under no illusion it may cost you something you want more in the future e.g the ability to move out.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Herzlos
    • By Herzlos 15th Jul 18, 8:23 AM
    • 8,423 Posts
    • 7,770 Thanks
    Herzlos
    There's a world of difference between track driving and road driving that might be why the black box (and probably the local constabulary).

    I'd be very wary of committing to a car like that for 5 years at your age, especially if it's got 125k miles on it already. How far do you drive to work? Are you planning being there long term? Looking to get your own house at some point?

    Have you looked into running costs and maintenance?


    Personally, being a petrol head I'd be looking to see what you can get for half of that budget at most and save the rest, then when you're at higher NCD and are more financially secure treat yourself to a nicer one. Lots of interesting options out there for the petrol head.

    I also don't believe the £1k insurance quote; I was getting much higher quotes and I'm 35 with full NCD.
    • Herzlos
    • By Herzlos 15th Jul 18, 8:33 AM
    • 8,423 Posts
    • 7,770 Thanks
    Herzlos
    But since you're going to buy it anyway (and be back here in a year trying to find a way out of it); I'd focus on borrowing less. Can you sell stuff to put towards it? Do overtime at work?

    Talk to your bank about a loan; they know the most about you
    • Dobbibill
    • By Dobbibill 15th Jul 18, 11:16 AM
    • 3,398 Posts
    • 4,383 Thanks
    Dobbibill
    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

    Have a look at this link - play the video from 8mins to 15.5mins for an explanation of good debt vs bad debt.

    https://www.moneysavingexpert.com/students/financial-education-video-2014/

    You already have a car so don't need it for the example used in Q3 but it gives you an idea of decisions you will need to make later in life.

    You don't say how much your income is so we have no idea of affordability to provide tailored replies.

    This is a money saving forum and so to suggest you borrow for something you want rather than something you need is not really doing you justice.

    Ultimately it's your decision, your previous posts indicate you will do what you want anyway. I wish you all the best but if it goes wrong, learn from it.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • tonycottee
    • By tonycottee 15th Jul 18, 11:20 AM
    • 1,140 Posts
    • 2,142 Thanks
    tonycottee
    If I had nothing better to do and wanted to get a rise out of people, my first stop would be this forum. Any mention of a loan for a car will get a lot of replies and twice as many if you mention you're under 25.
    My feeling is, if this was a genuine question, the OP would have mentioned employment.
    • Herzlos
    • By Herzlos 15th Jul 18, 12:22 PM
    • 8,423 Posts
    • 7,770 Thanks
    Herzlos
    That said, despite the mileage it looks like a cracking car. Sounds like (and you'd need to confirm) a car enthusiasts company car, 25k miles a year means a lot of motorway time, and it was probably traded in because there's often 5 year age limits.

    I mean, you shouldn't buy the car, but it'd likely be a good one if you could afford it
    • Icarus01
    • By Icarus01 17th Jul 18, 11:02 AM
    • 45 Posts
    • 31 Thanks
    Icarus01
    You've come to a forum full of sensible, money-conscious people and you're asking an unsensible question.. the answers don't surprise me much. I was in the same boat once, and while you're young and free it is fun getting nice cars but not if it's going to take most of your monthly packet (maybe). You need to consider things like rent and other living expenses unless you want to stay at home long term. I won't add much else to what's already been said except:


    - If you're 18 with little to no credit history, the best you'll get is relatively high interest finance from a "specialist" company, like carloans4u or cars4less


    - These will have an age or mileage limit, which is usually less than 100,000 miles and 8 years old. You wouldn't be able to get the BRZ if it's the one with 125,000 miles.


    - You'll struggle to sell the car privately with outstanding finance.

    And to everyone else who's doubting the £1000 insurance quote: It's probably correct to the point where it's cheaper than his current car. Insurance is considerably cheaper for newer cars that young drivers don't usually have. My first car was a Vauxhall Corsa 1.0 at 17, which cost me roughly £1700 a year to insure. My renewal at 18 was for £1200. I bought a Volvo C70 2.3T instead and that cost me £1000 to insure. That was going from 50 to 240bhp.


    Though I don't understand how you think it'll be cheaper outgoings than your Civic? (loan/fuel/tax/insurance as instead of fuel/tax/insurance)
    Last edited by Icarus01; 17-07-2018 at 11:09 AM.
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