So you hate people with a mortgage?
That's a pretty strong post by you, finance isn't a bad thing you know.
Loan...
- Thread starter Shep_Cobain
- Start date
So you hate people with a mortgage?
That's a pretty strong post by you, finance isn't a bad thing you know.
The PCP will typically cost more than the car is worth 2nd hand, so he won't have any additional funds to pay his loan off with.
He might be lucky to clear the PCP, he might not.
Completely different situation.
99% of the population can't afford to purchase a property outright, therefore mortgage is the only realistic option.
If you can't afford to purchase a £10,000 car, then why take out credit to buy it?
I honestly don't understand it.
I purchase items because I can afford it, not because I can't.
So he wants a second MUCH smaller loan to finance a 'run-around' and sell the current car to settle the current loan of 10k?
That makes more sense... so long as this run-around isn't £9,000!
So he wants a second MUCH smaller loan to finance a 'run-around' and sell the current car to settle the current loan of 10k?
That makes more sense... so long as this run-around isn't £9,000!
dont be silly mate ! £8,500 at most!
You don't understand why people can afford a monthly payment over a period of time, to pay for something that they cannot afford outright?
If you can afford to spend £250 a month on finance to have a car that you really want but will never be able to save up £20k for...then why not?
Only if you have the outgoings to cover it obviously
But if you're earning 3k after tax or whatever and can afford to do it, why not?
I wouldnt, but why not?
To be fair, I've purchased items on interest free finance before. Such as a sofa for my new house. I wasn't going to fork out £2k out right, after all that lump sum is sat in my bank account earning me interest instead of paying it off in one hit benefiting the furniture people more than me.
Finance isn't such a bad idea as long as you understand the implications of it, you can afford it, you get a good rate and are organised with your money.
I save and pay for most things up front and live within my means. I pay back what I owe when I need to when it suits my situation. Sofa example above being one.
So just to defend people who are getting "hated on" for using finance, it can work in some situations if you know what you are doing. Same as a loan and so on. However, living beyond your means is fair game, I understand your disdain for those people as I have it too! I also appreciate you probably were directing your frustration out on the latter rather than the former as described.
Shep is getting a grilling here, and to be fair he and everyone else expected it and its mostly justified. He clearly doesn't value money like most here and has spent frivolously on items he really didn't need or could have downsized on.
If you need some real financial advise Shep, visit MSE forums and sign up. The people there are excellent and usually give very good advice on what to do and not do.
That doesn't quite work out, as if you can afford to give a loan company £250 a month then you can afford to save £250 a month and have a car of the same value within 7 years.
The thing with loans is that it's a calculated risk to have something right now and you end up paying interest for the benefit of having it sooner.
But why wait 7 years? When the value of the car will diminish (which you wont see anyway unless trading in) and then the car will be 7 years old =/...it wont be knew / how you want it
I was more pulling you up on your suggestion that a loan is there if you'd 'never be able to save up' for it.
I completely understand the concept of taking out a loan to have something here and now, but it's not always the only way.
I think the OP has gone for the novelty of having a brand new car, it's worn off, he's realised he's not getting value for the amount he's spending out and wants to sort this out by reducing his overall debt by downsizing.
Indeed
But if you CAN afford it, theres nothing wrong with it.
OP has other loans, and should have paid those off before taking another out
Soldato
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The very fact that you mention having the option to run back to "Daddy" is clouding your perception of debt. That is then confounded by yet more perceptions about where you will be in x years time on y amount of money.
You could be on a lot less or even, Goddess forbid, unemployed. You don't know and nor can you guarantee that you will be able to fall back on family.
Thus you should live within your means. That does not mean you should live the life of a monk.
If your so good at whealing and dealing on eBay then how about making some money to put in savings rather than spend on an Uber PC that is technically a waste of money as paying the premium for cutting edge components leads to a bad return on investment.
One last thing. Never, never, never take out a loan/contract for somebody else in your name. At the very best you could be a guarantor but I wouldn't advise that.
Soldato
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like most (if not all) here, please do not go and get another loan. deal with the ones you have got already! piling more on is a surefire way of landing in big doodoo.
Either get rid of what you have now and get something cheaper or stick with and get that finance paid off...
seriously i think most of us are in a bit of debt here and there but getting MORE debt would be the last thing we consider!
Either get rid of what you have now and get something cheaper or stick with and get that finance paid off...
seriously i think most of us are in a bit of debt here and there but getting MORE debt would be the last thing we consider!
Two questions
How much finance do you owe (what's the settlement figure)
How much is the car worth?
He isnt looking to pile more on, he is looking to consolidate the loans.