Young'un needs advice on small car loan

[anonymous-user]

Just a quick one Finance crew.

A run down - I'm 20 years old, not earning a fantastic wage but in stable full time work and have very little out goings.

I'm looking into getting a ~£3000 loan to fund a slightly extravagant second hand car purcahse (Jaguar XJR ) as oppose to saving for a few months (like I know I really, really should!). Before the lecture is rolled out I've done the maths on running costs and all the boring stuff and it is not a worry, its just that I've sat down and done some calculations and its going to 4-6 months to comfortably save that much, and I don't think I can do another 6 months without a car!

My credit report comes back as 'bad' boarding on 'fair' which I suppose is fair enough as I don't have any credit other than a paid over draft.

The question really is will I be able to get a non ridiculous cost loan at my age and credit? Only looking to borrow for 2 year or maybe even one and potentially smash the payments out at a similar sort of rate I'd be saving so it was paid off within the year. Bank (santander) says they won't give loans to under 21s, would I have more luck asking in branch?

Any advice appreciated

Thanks

[Jimslips]

279 said:

Just a quick one Finance crew.

A run down - I'm 20 years old, not earning a fantastic wage but in stable full time work and have very little out goings.

I'm looking into getting a ~£3000 loan to fund a slightly extravagant second hand car purcahse (Jaguar XJR ) as oppose to saving for a few months (like I know I really, really should!). Before the lecture is rolled out I've done the maths on running costs and all the boring stuff and it is not a worry, its just that I've sat down and done some calculations and its going to 4-6 months to comfortably save that much, and I don't think I can do another 6 months without a car!

My credit report comes back as 'bad' boarding on 'fair' which I suppose is fair enough as I don't have any credit other than a paid over draft.

The question really is will I be able to get a non ridiculous cost loan at my age and credit? Only looking to borrow for 2 year or maybe even one and potentially smash the payments out at a similar sort of rate I'd be saving so it was paid off within the year. Bank (santander) says they won't give loans to under 21s, would I have more luck asking in branch?

Any advice appreciated

Thanks

I will lend you it. You get £3000, pay me back £4000. I want the money paid by end of October. £444 a month for 9 months.

Deal? We can even call it a striaght £444 a month and I will let you away with the last £4.

[anonymous-user]

Jimslips said:

I will lend you it. You get £3000, pay me back £4000. I want the money paid by end of October. £444 a month for 9 months.

Deal? We can even call it a striaght £444 a month and I will let you away with the last £4.

"Pistonheads - Loan Sharking Matters" .

Thanks for the offer (if it was serious) but £1000 for the privilege of borrowing £3000 over 9 months is a tad too rich for my blood

An APR calculator works that out as 104%. I want a Jag, but I don't want one that much.

[Jimslips]

279 said:

"Pistonheads - Loan Sharking Matters" .

Thanks for the offer (if it was serious) but £1000 for the privilege of borrowing £3000 over 9 months is a tad too rich for my blood

An APR calculator works that out as 104%. I want a Jag, but I don't want one that much.

I am serious. PM me if you change your mind.
Think of a lovely new jag. YOU could have it in Jan

[BoRED S2upid]

270 - this is where you negotiate terms.

[5potTurbo]

APR of 104?
Cheaper than the Provident!

[eps]

zopa?

[jonny70]

whats the insurance like for a xjr at 20?

[ringram]

Save up and pay cash. If you cant handle the discipline now there is no hope..

[anonymous-user]

jonny70 said:

whats the insurance like for a xjr at 20?

I'm looking at about £1400 for the year. More money than I wanted to be spending on insurance at my age but given the amount of car, I'm reasonably happy.

ringram said:

Save up and pay cash. If you cant handle the discipline now there is no hope..

But I WANT IT NOW!!! .

To be fair the way I'm justifying it to myself is that a £3,000 or so loan over 2 years on a car that has already taken the brunt of depreciation isn't a long term financial commitment. Once its paid off it'll broadly speaking be worth what I paid and, I won't be tempted to then go for finance again for my next car because I'll already have a £3,000 or so asset in the Jag, and £3000 odd buys enough cars to keep me oppucied for a while so it certainly is just a one off thing.

Usually I am very much a saving man and didn't really think I'd ever be considering borrowing money for anything other than a house, but a few months ago I had to sell my last car and dip into savings to help with a family financial issue and as a result I'm starting my car fund from scratch again rather than having change left over from a previous car and savings meaning £3k in savings seems like a larger mountain to climb than it really is.

For the sake of having something that'll give me some freedom and enjoyment back in life now rather than in half a year I'm willing to pay a bit extra (but not a grand extra )

[Jimslips]

How about £996 extra?

[Soovy]

Mad young bloke said:

a car that has already taken the brunt of depreciation isn't a long term financial commitment. Once its paid off it'll broadly speaking be worth what I paid......... I'll already have a £3,000 or so asset in the Jag

Until it develops a problem that write the car off because it's too expensive to fix.

[Jimslips]

Soovy said:

Until it develops a problem that write the car off because it's too expensive to fix.

Then I can lend him more

[jas xjr]

A 20 year old with an xjr . Wow
I am 48 and still cannot help driving like I stole it
And they are not all money pits. I have had mine for 7 or 8 years and nothing serious as yet

[AyBee]

Jimslips said:

Soovy said:

Until it develops a problem that write the car off because it's too expensive to fix.

Then I can lend him more

Or he refuses to pay you back, you take the 'asset' you lend against and take him to court for the rest?

OP - let's rephrase this - how much would you like to pay over 9 months for £3000 in January?

[Gibson70]

279 - can your family help? Grandad ?

[anonymous-user]

Are you single? If you are could you still afford the car if you met the girl of your dreams and had to take her out, buy her presents etc? Will you regret the fact that you can't afford to go on holiday or go out with the boys so much because you have to pay for the car?

Insurance is going to be absolutely mental as well, i'd guess £1500 a year +, that's if you can even find someone who will insure you. I think there are better things for 20 years olds to spend their money on (saving for a deposit on a house being the obvious one).

Sorry for the lecture, but what else did you expect.

[Jimslips]

Inkyfingers said:

Are you single? If you are could you still afford the car if you met the girl of your dreams and had to take her out, buy her presents etc? Will you regret the fact that you can't afford to go on holiday or go out with the boys so much because you have to pay for the car?

Insurance is going to be absolutely mental as well, i'd guess £1500 a year +, that's if you can even find someone who will insure you. I think there are better things for 20 years olds to spend their money on (saving for a deposit on a house being the obvious one).

Sorry for the lecture, but what else did you expect.

I think he expected advice on a small car loan. Not advice if he should get a loan or not.
I think he should live for the moment. If it is what you love, do it

[Sarnie]

I usually hate the holyier than thou tripe that some people post on these sorts of thread, such as "any sort of finance is the work of the devil" and "if you can't afford to buy it outright, you can't afford it" etc etc

But in this instance, the OP wants to take a loan over two years or so when in his initial post he says he could save the money in 4-6 months??? If thats possible then just save up and you'll have the car around May without any monthly payments...........

[Jimslips]

Sarnie said:

I usually hate the holyier than thou tripe that some people post on these sorts of thread, such as "any sort of finance is the work of the devil" and "if you can't afford to buy it outright, you can't afford it" etc etc

But in this instance, the OP wants to take a loan over two years or so when in his initial post he says he could save the money in 4-6 months??? If thats possible then just save up and you'll have the car around May without any monthly payments...........

I agree. I was just continuing with my sale of the cash to him.
If you want cash now, you'd need to borrow more to reduce the rate OP...