fakeindian Posted February 4, 2010 Share Posted February 4, 2010 I disagree with people saying that loans are wrong. I do however disagree with getting a loan over twice the period you currently have. Its only £110 a month your saving, can you not cut back on anything at all like smoking, drink, sky etc and then in 2.5 years you own the car outright, for ever yeah stop buying porn Quote Link to comment Share on other sites More sharing options...
Sarnie Posted February 4, 2010 Share Posted February 4, 2010 I disagree with people saying that loans are wrong. I do however disagree with getting a loan over twice the period you currently have. Its only £110 a month your saving, can you not cut back on anything at all like smoking, drink, sky etc and then in 2.5 years you own the car outright, for ever Pretty much what i was thinking said in a better way lol. It happens Quote Link to comment Share on other sites More sharing options...
marzman Posted February 4, 2010 Author Share Posted February 4, 2010 I disagree with people saying that loans are wrong. I do however disagree with getting a loan over twice the period you currently have. Its only £110 a month your saving, can you not cut back on anything at all like smoking, drink, sky etc and then in 2.5 years you own the car outright, for ever Nope - cant cut back on anything. We're almost down to the absolute bare minimum on everything, so the £150 a month this car will now cost me will be my only luxury. You've seen everything i own on eBay sarnie We're going through some life changing stuff at the moment, which is hopefully going to get sorted one way or the other this year, good or bad. I wont go into it until its all sorted though (its nothing bad, just personal!). On paper getting a second loan sounds like the wrong thing to do, but im only doing that to pay off my existing loan in FULL. Doing this gets me a better rate on the new loan, than adjusting my existing loan to suit. The cost for this switch after all said and done is only an additional £700 over 5 years, which is £11 a month. I'll pay that to hold onto my zed. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted February 4, 2010 Share Posted February 4, 2010 Sounds good mate Get an extra £2k on your loan for some Volks Quote Link to comment Share on other sites More sharing options...
fakeindian Posted February 5, 2010 Share Posted February 5, 2010 Sounds good mate Get an extra £2k on your loan for some Volks LMAO Quote Link to comment Share on other sites More sharing options...
Number86 Posted February 5, 2010 Share Posted February 5, 2010 If its not beyond your means, then keep it, if it stretches you too much then sadly its gotta go, maybe temporarily!? I don't think its a good idea to borrow money IMHO, but if the Z means that much to you, maybe you can cut back on other spending I.E where you do your weekly shopping, stop modding your car, work extra hours, that's what id do. Borrowing is never a good option, sorry if i sound annoying or whatever xD I'm afraid I tend to agree. If you are having to get loans etc to cover paying off the car then any issues that may arise and are not accounted for may lead to you resenting it. But if you really really love it then go for it! Whats wrong with having a loan to pay for a car? Im not offended or arguing here, im interested... Ideal world obviously, you'd pay for it outright, but in the real world unless you're very lucky that's not possible. Who has £15k lying about to buy a car outright that isnt: a) still at home with their parents older, therefore had chance to save/make money on property etc c) a spoiled brat d) Have a ridiculously good job (i.e contracting or self employed etc). Im in my mid 20's, only been working for 3 years having come out of Uni so had no chance to save, but earn enough to have a nice car in my life... finance makes the world go round! I bought mine outright a few months ago, and I am none of those! I should add that there's nothing wrong with getting a loan for a car! 700 extra over the term isn't bad either. Quote Link to comment Share on other sites More sharing options...
andlid Posted February 5, 2010 Share Posted February 5, 2010 good stuff you changed your mind! Hope your personal stuff will help sort out the loan quicker hey Remember to budget for some other costs, like running costs / repairs... no point in having the car and not be able to run her! All the beast! I'm missing my car something else and it's only been a 1 week and 1/2 since I drove it! Cant actually see me sell her EVER! Quote Link to comment Share on other sites More sharing options...
andlid Posted February 5, 2010 Share Posted February 5, 2010 If its not beyond your means, then keep it, if it stretches you too much then sadly its gotta go, maybe temporarily!? I don't think its a good idea to borrow money IMHO, but if the Z means that much to you, maybe you can cut back on other spending I.E where you do your weekly shopping, stop modding your car, work extra hours, that's what id do. Borrowing is never a good option, sorry if i sound annoying or whatever xD I'm afraid I tend to agree. If you are having to get loans etc to cover paying off the car then any issues that may arise and are not accounted for may lead to you resenting it. But if you really really love it then go for it! Whats wrong with having a loan to pay for a car? Im not offended or arguing here, im interested... Ideal world obviously, you'd pay for it outright, but in the real world unless you're very lucky that's not possible. Who has £15k lying about to buy a car outright that isnt: a) still at home with their parents older, therefore had chance to save/make money on property etc c) a spoiled brat d) Have a ridiculously good job (i.e contracting or self employed etc). Im in my mid 20's, only been working for 3 years having come out of Uni so had no chance to save, but earn enough to have a nice car in my life... finance makes the world go round! I bought mine outright a few months ago, and I am none of those! I should add that there's nothing wrong with getting a loan for a car! 700 extra over the term isn't bad either. neither am I but some people might be, suppose he had to stop somewhere couldn't really harp on until Z now could he! Quote Link to comment Share on other sites More sharing options...
Sarnie Posted February 5, 2010 Share Posted February 5, 2010 :Cant actually see me sell her EVER! I never thought I'd sell the zed either but there is always something else out there to tempt you............. Quote Link to comment Share on other sites More sharing options...
andlid Posted February 5, 2010 Share Posted February 5, 2010 :Cant actually see me sell her EVER! I never thought I'd sell the zed either but there is always something else out there to tempt you............. I think it was fate that made me buy her, wasn't even after something like that!!! I think what will happen is forged internals to 4.15L and TT FI setup and some other bits to keep her not from braking else where and then I'll keep her until they get collectors items (I still have a second car that I can 'trade' up)... Guess it'll be a S4 estate as some stage. Something like this would be cute http://www.youtube.com/watch?v=s9mdtyQ1x8U Anyway the best way of staying away from temptation is to not taste the fruit! (also drive motorcycles so for ultimate speed / track experience that hunger is well looked after) Quote Link to comment Share on other sites More sharing options...
martinopy Posted February 5, 2010 Share Posted February 5, 2010 I see nothing wrong with loaning money, i'm sure a large % of the population have loans and nearly everyone has a mortgage. The only thing I would say is with taking a loan over a longer period you need to be sure that you want to keep the z over that period. Quote Link to comment Share on other sites More sharing options...
marzman Posted February 5, 2010 Author Share Posted February 5, 2010 I see nothing wrong with loaning money, i'm sure a large % of the population have loans and nearly everyone has a mortgage. The only thing I would say is with taking a loan over a longer period you need to be sure that you want to keep the z over that period. Agree and disagree... by me taking the loan over a longer period, i am effectively releasing some of the equity in my car I can still sell it during that time, as im not tied into a contract for the car, as its a personal loan. Quote Link to comment Share on other sites More sharing options...
Number86 Posted February 5, 2010 Share Posted February 5, 2010 Is the car worth more than the remaining balance on the loan? Quote Link to comment Share on other sites More sharing options...
D13vyl Posted February 5, 2010 Share Posted February 5, 2010 Hi Mate Welcome back. The zed is a car of dreams keep her, D Quote Link to comment Share on other sites More sharing options...
davetstan Posted February 6, 2010 Share Posted February 6, 2010 Good man Chris. I agree, getting a loan is perfectly acceptable, however shop around and don't get one with front loading interest. ie you borow 5k and immediately you owe £5800. Get one that charges interest on a daily rate. Lloyds TSB do these for one. Then, if you have any spare cash at the end of the month you can pay a bit off extra. Thus reducing the term, and also the total interest you will pay on the total loan. You never know whats around the corner mate. Say in 12 months you have changed your mind again!! (heaven forbid) and you decide to sell and clear your debts off. If you have a daily accruing interest loan, you can save a few quid if you pay it off early. They do charge for doing this. But the way around that is pay off almost all of it and then just let the last one or two payments to drip out of your account as normal. Then it just closes down, job done. No early settlement figure to be paid. Lovely stuff. These types of loans basically give you more flexibility. At the end of the day, you want to borrow the cash and pay as little as possible for the priviledge. Hope this makes sense mate, it is 04:30 as I couldn't sleep so I may have rambled on a bit. Do a bit of research before you jump in and refinance... Oh and I'm sure you don't need telling to steer clear of the PPC option...Load of old bollards!!! Hope this helps. Any questions drop us a PM. Regards Dave Quote Link to comment Share on other sites More sharing options...
CaptainSensible Posted February 6, 2010 Share Posted February 6, 2010 Nothing wrong with getting a loan to buy a car BUT getting a loan for the entire amount is not the wisest move. The value of your car could well drop faster than the amount you still owe, so if you had to sell (eg you lost your job) you could find yourself in a horrible situation where you owe more than your car is worth. I guess it would be like buying a house with a 100% mortgage, although of course a house is not a depreciating asset like a car, but you'd be far wiser to save a deposit first. With a car you need to put down a bigger deposit to have a healthy amount of 'equity' to offset the depreciation. Borrowing is not a bad thing, used prudently its great. But remember that 'reckless' borrowing (or reckless lending by the banks!) is what got our country into the mess it is in at the moment, don't become another statistic! Quote Link to comment Share on other sites More sharing options...
Husky Posted February 6, 2010 Share Posted February 6, 2010 If its not beyond your means, then keep it, if it stretches you too much then sadly its gotta go, maybe temporarily!? I don't think its a good idea to borrow money IMHO, but if the Z means that much to you, maybe you can cut back on other spending I.E where you do your weekly shopping, stop modding your car, work extra hours, that's what id do. Borrowing is never a good option, sorry if i sound annoying or whatever xD I'm afraid I tend to agree. If you are having to get loans etc to cover paying off the car then any issues that may arise and are not accounted for may lead to you resenting it. But if you really really love it then go for it! Whats wrong with having a loan to pay for a car? Im not offended or arguing here, im interested... Ideal world obviously, you'd pay for it outright, but in the real world unless you're very lucky that's not possible. Who has £15k lying about to buy a car outright that isnt: a) still at home with their parents older, therefore had chance to save/make money on property etc c) a spoiled brat d) Have a ridiculously good job (i.e contracting or self employed etc). Im in my mid 20's, only been working for 3 years having come out of Uni so had no chance to save, but earn enough to have a nice car in my life... finance makes the world go round! I bought mine outright a few months ago, and I am none of those! I should add that there's nothing wrong with getting a loan for a car! 700 extra over the term isn't bad either. me too when i bought her i handed over the cash it's all about prioritising you life Quote Link to comment Share on other sites More sharing options...
Number86 Posted February 10, 2010 Share Posted February 10, 2010 Well. My income fluctuates, so having a car loan scares me a little. On top of all the day to day running costs, I really didn't want the burden of additional monthly payments on my head! If you get a good rate of interest though. Getting a loan isn't really a lot more expensive then buying it cash anyway. Heck, if Mr A gets a loan but negotiates 2k off the price that Mr B payed in cash, he's gonna be better off anyway, and he'll be earning interest off the money he kept in his bank account! Quote Link to comment Share on other sites More sharing options...
andlid Posted February 10, 2010 Share Posted February 10, 2010 Well. My income fluctuates, so having a car loan scares me a little. On top of all the day to day running costs, I really didn't want the burden of additional monthly payments on my head! If you get a good rate of interest though. Getting a loan isn't really a lot more expensive then buying it cash anyway. Heck, if Mr A gets a loan but negotiates 2k off the price that Mr B payed in cash, he's gonna be better off anyway, and he'll be earning interest off the money he kept in his bank account! Correct bar one thing, Mr A wont have any money in the bank account... he will however have more mods on his car then Mr B Quote Link to comment Share on other sites More sharing options...
marzman Posted February 10, 2010 Author Share Posted February 10, 2010 Thought i'd lay this to bed now... I applied for a loan at 9%, and they came back offering me 14% Screw that. I'll keep the car, and continue with the original payments. I'll find a way of making it work. I've been trying to work out how people of a similar age to me can buy their cars outright, while leading normal lives. My story is: 1.Went to Uni, 19-23. I had 3 cars during that time, all lightly modded (so lots of money wasted on wheels). 2. Left Uni and got the Job im in now. After 2 months, i bought a £10k bmw - £5k cash/£5k loan. 3. Very soon after that, left home and started renting with the missus. Paying £600pcm in rent. 4. Having had the bmw for 11 months, i traded it in for the zed, losing £4k in the process (i.e. most of my capital. Therefore had to get a loan to pay for the rest of the car. 5. 2.5 years on, i've paid off over half of the loan now. During that time, i have not saved a penny. Looking back i've had a pretty stupid lifestyle... too many meals out, had a separate drift car last year etc etc. I've probably been wasting £300 a month since i've been in work. I guess i could have saved that money during that time, but you only live once and my life would have been boring as sh!t. So what am i doing wrong? Quote Link to comment Share on other sites More sharing options...
jacr87 Posted February 10, 2010 Share Posted February 10, 2010 Thought i'd lay this to bed now... I applied for a loan at 9%, and they came back offering me 14% Screw that. I'll keep the car, and continue with the original payments. I'll find a way of making it work. I've been trying to work out how people of a similar age to me can buy their cars outright, while leading normal lives. My story is: 1.Went to Uni, 19-23. I had 3 cars during that time, all lightly modded (so lots of money wasted on wheels). 2. Left Uni and got the Job im in now. After 2 months, i bought a £10k bmw - £5k cash/£5k loan. 3. Very soon after that, left home and started renting with the missus. Paying £600pcm in rent. 4. Having had the bmw for 11 months, i traded it in for the zed, losing £4k in the process (i.e. most of my capital. Therefore had to get a loan to pay for the rest of the car. 5. 2.5 years on, i've paid off over half of the loan now. During that time, i have not saved a penny. Looking back i've had a pretty stupid lifestyle... too many meals out, had a separate drift car last year etc etc. I've probably been wasting £300 a month since i've been in work. I guess i could have saved that money during that time, but you only live once and my life would have been boring as sh!t. So what am i doing wrong? Sounds exactly like me. Just came back from my xmas holidays and had nothing in the bank + I had 4700 on the credit card. . I ve just recently screwed the nut. And saving every penny I have during the week and balancing my income over the month with the remaining going in to an Isa. Going a bit better just now but means all big ideas I have on the car are being put on hold. Quote Link to comment Share on other sites More sharing options...
andlid Posted February 10, 2010 Share Posted February 10, 2010 Thought i'd lay this to bed now... I applied for a loan at 9%, and they came back offering me 14% Screw that. I'll keep the car, and continue with the original payments. I'll find a way of making it work. I've been trying to work out how people of a similar age to me can buy their cars outright, while leading normal lives. My story is: 1.Went to Uni, 19-23. I had 3 cars during that time, all lightly modded (so lots of money wasted on wheels). 2. Left Uni and got the Job im in now. After 2 months, i bought a £10k bmw - £5k cash/£5k loan. 3. Very soon after that, left home and started renting with the missus. Paying £600pcm in rent. 4. Having had the bmw for 11 months, i traded it in for the zed, losing £4k in the process (i.e. most of my capital. Therefore had to get a loan to pay for the rest of the car. 5. 2.5 years on, i've paid off over half of the loan now. During that time, i have not saved a penny. Looking back i've had a pretty stupid lifestyle... too many meals out, had a separate drift car last year etc etc. I've probably been wasting £300 a month since i've been in work. I guess i could have saved that money during that time, but you only live once and my life would have been boring as sh!t. So what am i doing wrong? nothing problaby... either loose some of the expense or get a higher income If you REALLY want to know where all your money goes make a budget and take in ALL the expense you do and see where it all ends up...then put 200-300£ if not more asside into a savings account.. did that a good while back myself and have around 8k sitting there waiting to be spent Try the credit card tip sounds good to me Quote Link to comment Share on other sites More sharing options...
Ekona Posted February 10, 2010 Share Posted February 10, 2010 So what am i doing wrong? [something involving] the missus There's your answer, women are always the issue when it comes to losing track of money Quote Link to comment Share on other sites More sharing options...
Stew Posted February 10, 2010 Share Posted February 10, 2010 So what am i doing wrong? [something involving] the missus There's your answer, women are always the issue when it comes to losing track of money Quote Link to comment Share on other sites More sharing options...
marzman Posted February 10, 2010 Author Share Posted February 10, 2010 So what am i doing wrong? [something involving] the missus There's your answer, women are always the issue when it comes to losing track of money The missus actually manages to save all her money (maybe thats it, she earns less than me, but ends up with more. ) Andlid - I have identified the £300 a month i've been wasting, and up until xmas i would have started saving that - but now my missus isnt working, that £300 is no longer spare. However, when she's working again, i wont return to old ways, and that £300 will be put to sensible use. volks. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.