Loan...

Delvis said:
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
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The difference is that if you are saving and situations change for the worse you have saving to help you out and don't have a fixed sum coming out the bank each month.

With a loan if circumstances change you are pretty much stuck unless willing to take drastic action.

Saving £250 a month for seven years gives you £21000 - You could by a nice (even new if you wanted) car for that much. Hell you could buy a car and us the rest towards a deposit on a house, or a nice PC or a holiday or to tide you over between jobs.

See why saving is generally a better option?

Oh and I am not ant-loans as I have had manageable loans and I certainly not against 0% finance especially for larger purchases that can't wait but in general saving is better as it exposes you to a lot less risk.

The buy-now pay-never culture like the one Shep follows will never see that though. They will always see loans as being the best option. They will ignore all advice and convince themselves it is the best choice even twisting logic.
 
In all fairness people will noramlly take what you can give them.

I think there are bigger issues a foot than Dave Smith (or 1000 Dave Smiths) taking out a loan he realistically couldn't afford.

It was someones decision to lend them the money, it's their fault we are in the ****. Not the dumb people who can't afford things but take out loans anyway, thinking everything is rosey.
 
Saving is better yes, but not everyone has £21000 at that given time, and want something at that given time, so finance is there for that reason.

If you brought a new car at £21000, it wouldnt be worth £21000, so there would be no point unless you intended on keeping the car for yourself, but then you may as well of financed the damn thing (again, risk factor, I kow this)

yes people will ignore advice, its what they do, but saying finance is 'bad bad bad' isnt always true.

My dad brought my first car, and I then paid him back...Is that bad? That was essentialls a 0% loan...But it got me a working car (no it wasnt a bazillion quid ;))
 
Knubje said:
It was someones decision to lend them the money, it's their fault we are in the ****. Not the dumb people who can't afford things but take out loans anyway, thinking everything is rosey.
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That is like fat people blaming the local shop for making it so easy for them to by Mars bars. Self control and self discipline.
 
There is nothing wrong with using a portion of a loan or something to buy a car. It's an expensive item.

There is everything wrong with buying brand new cars when you earn the square root of sod all, just as there is quite a lot wrong with financing say a £20k car (This seems to be what the discussion has moved onto) when you dont have two pennies to rub together so need to finance 100% of it.

Finance should be balanced with a reasonable amount of equity in the vehicle.
 
[TW]Fox;18266632 said:
There is nothing wrong with using a portion of a loan or something to buy a car. It's an expensive item.

There is everything wrong with buying brand new cars when you earn the square root of sod all, just as there is quite a lot wrong with financing say a £20k car (This seems to be what the discussion has moved onto) when you dont have two pennies to rub together so need to finance 100% of it.

Finance should be balanced with a reasonable amount of equity in the vehicle.
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exactly what i'm trying to say...just not very well as you can see
 
LordSplodge said:
That is like fat people blaming the local shop for making it so easy for them to by Mars bars. Self control and self discipline.
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I agree with what you are saying. It is all correct in theory.

Perhaps we should just cull fat and stupid people?


*Worms everywhere*

;)
 
Apart from the fact that I agree with the sensible advice given to you by most forum members I'd also like to add the following:

If you think you'll get a personal loan of 15k with a 7.x% rate you are dreaming. I had perfect credit history, with a perfect credit score, no debt, plenty of credit already available and I couldn't qualify for such a low rate on a 10k loan - and I earn significantly more than you.

Whatever the advertisement might have said, you will only get an APR of about 15%. Let alone the fact that the bank is not going to lend to someone who is already in debt. The fact that you want the money to pay off your previous debts is backed up only by your word, and that won't mean much to the loan advisor. You need to look for debt consolidation advice/services that don't give you the money but rather gather your loans into one package (somehow..).
 
Delvis said:
Saving is better yes, but not everyone has £21000 at that given time, and want something at that given time, so finance is there for that reason.
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Then you get something you can afford at the time or a small loan.

As for depreciation well you have to take that hit but if you spent 21k on a car (cash) and it depreciated by say 4k over 3 years you would still have 17k in assets.

You buy a 21k car via a loan you have sod all in equity in your car and have to pay the extra in APR and still get hit with the depreciation.
 
kgi said:
Whatever the advertisement might have said, you will only get an APR of about 15%.
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So you are saying that the typical rate is not typical? I think you would be wrong about that as there was a few cases against banks not long ago I think, where this was stamped out.
 
Morba said:
So you are saying that the typical rate is not typical? I think you would be wrong about that as there was a few cases against banks not long ago I think, where this was stamped out.
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Only 66% (soon to be 51%, thanks to the EU) of applicants accepted need to be given the advertised rate for loans and credit cards :)
 
I haven't posted in this thread since page 1 and have skim-read pages 2-7.
I really didn't realise there were so many numpties were on OCUK when it comes to money!
No end of my friends have a 5 year £10k car loan whilst earning £13k a year in a supermarket, they are utterly retarded and will never own their own house.

Those hitting out at mortgages are hilarious - There is no other feasible way of buying a house, unless mummy and daddy pay or a relative snuffs it.

This thread is proving for some amusing reading.
I don't say this often, but Fox is spot on with this one.
OP: You have a pathetic salary yet you want the life of someone earning twice what you do. Grow up!
 
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Maccy said:
But you're just trying to reduce your debt with more debt?
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He doesn't get it.

Sorry to say but I've grown to just /lol when I see threads from OP asking for advice, it's the same old thing.

The only thing OP would take in is WHY he was declined for credit, which his bank will tell him.
 
[TW]Fox;18266930 said:
New job? £50k a year isnt bad, thought you were still trucking for Eddies! I remember when you posted your hourly contract, seems you've gone up in the world since then :)
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:eek:
 
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