Loan to buy a car?
29-11-2016, 08:05 PM
#1
PassionFord Post Whore!!
Thread Starter
Loan to buy a car?
Anyone else done this?
Looking at getting a mk1 frs next year. Now with prices around the 10k mark its a lot of money for me. I am in the middle of saving for one but it would leave me skint.
With my rs2000 and rs1800 here too (plan was to sell 1800) am planning on keeping rs2000 as well.
Looked at borrowing 6-7k ten putting rest of the money towards it. Average pay back is about £120 which i can easily afford. I see it as a better option then finance or spending all my savings on one.
If the worst does happen i could sell the car and pay the loan off. Also see the prices rising a lot on these so by the times the loan is paid off the value of the car would more then match the interest of the loan.
Anyone done this?
Looking at getting a mk1 frs next year. Now with prices around the 10k mark its a lot of money for me. I am in the middle of saving for one but it would leave me skint.
With my rs2000 and rs1800 here too (plan was to sell 1800) am planning on keeping rs2000 as well.
Looked at borrowing 6-7k ten putting rest of the money towards it. Average pay back is about £120 which i can easily afford. I see it as a better option then finance or spending all my savings on one.
If the worst does happen i could sell the car and pay the loan off. Also see the prices rising a lot on these so by the times the loan is paid off the value of the car would more then match the interest of the loan.
Anyone done this?
29-11-2016, 08:24 PM
#2
PassionFord Post Whore!!
Years ago I did it and if you can afford it then do it . Try and pay it back faster with bigger payments every quarter . Sainsbury's bank are good for this . you can pay lumps off without being charged .
29-11-2016, 08:26 PM
#3
If it appreciates in value more every month than the interest you will be paying then yes, it makes sense. Personally if I wanted to be in £10,000 of debt I would want it to be for something more important than an old Ford, like property for example, but if that's what you want then go for it.
Last edited by RichieST; 29-11-2016 at 08:27 PM.
29-11-2016, 08:45 PM
#4
I've found that life I needed.. It's HERE!!
Interest rates are low so if you need to borrow then now a good time.
Folk react differently with manageable debt, lots of my friends finance their cars etc. I've always paid cash and don't really like the idea of borrowing. Earlier this year when my mk3 RS was ready I hadn't quite saved enough so I had to borrow a little to get it paid for, took out a couple of 0% interest credit cards. This would possibly work for you too?
Folk react differently with manageable debt, lots of my friends finance their cars etc. I've always paid cash and don't really like the idea of borrowing. Earlier this year when my mk3 RS was ready I hadn't quite saved enough so I had to borrow a little to get it paid for, took out a couple of 0% interest credit cards. This would possibly work for you too?
29-11-2016, 09:33 PM
#5
PassionFord Regular
Consider the worst-case scenario and if you could afford it. For example, the car is a total loss and for some reason the insurance won't pay out.
Like Jason, I prefer to save and then buy rather than borrow. But it's an interesting way of growing £10k if you think the market is heading in the right direction. E.G. borrow £10k, two years later, sell car and pay off loan with perhaps some excess to cover the ownership costs.
Like Jason, I prefer to save and then buy rather than borrow. But it's an interesting way of growing £10k if you think the market is heading in the right direction. E.G. borrow £10k, two years later, sell car and pay off loan with perhaps some excess to cover the ownership costs.
30-11-2016, 06:36 AM
#6
PassionFord Post Whore!!
Thread Starter
Ive never liked borrowing but i really want one and be around a year until i have enough money to buy it outright. Buy then i think prices will be too much!
I have my house etc so not really on need of anything else like that. Good at a cossie too but it would kill me to run/maintain it.
Ive been looking at natwest loans £7500 borrowed over 5 years £8100 back which i don't think is too bad.
I have my house etc so not really on need of anything else like that. Good at a cossie too but it would kill me to run/maintain it.
Ive been looking at natwest loans £7500 borrowed over 5 years £8100 back which i don't think is too bad.
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30-11-2016, 08:36 AM
#8
I had to get a loan to get a car I wanted about 4 or so years ago, just make sure you shop around, I took a good week odd making calls, sending emails etc. Finally settled with TescoBank, their rates were almost too good to be true at the time, I borrowed £4k & paid back £4400 (or there abouts) across 2 years (about £180 pcm iirc). If you can afford it & it is something you really want then go for it, I went this route as i saw it better than financing a car & ultimately I could do what I wanted with it.
30-11-2016, 08:40 AM
#9
money
money earns you nothing at the moment intrest wise unless you take what is now a fair risk by investing it long term- imho
just as well firing it onto a car of perhaps a little investment potential-worse case scenario if they all [classics etc] drop a bit its a good car to have anyway
just as well firing it onto a car of perhaps a little investment potential-worse case scenario if they all [classics etc] drop a bit its a good car to have anyway
30-11-2016, 09:37 AM
#10
If you can afford the repayments go for it mate.
As said with interest rates so low ,use their money not yours lol.it shouldn't stop you saving at the same time.
The interest looks like £10 a month ,which let's face it is a cup of coffee and a bigmac lol
As said with interest rates so low ,use their money not yours lol.it shouldn't stop you saving at the same time.
The interest looks like £10 a month ,which let's face it is a cup of coffee and a bigmac lol
30-11-2016, 03:49 PM
#12
PassionFord Post Troll
30-11-2016, 05:55 PM
#15
PassionFord Post Whore!!
Thread Starter
Shopping round for loans seems i may get some even cheaper. Think i may look after christmas hopefully few people are skint then and may get a bargain
30-11-2016, 06:25 PM
#16
PassionFord Post Whore!!
If it appreciates in value more every month than the interest you will be paying then yes, it makes sense. Personally if I wanted to be in £10,000 of debt I would want it to be for something more important than an old Ford, like property for example, but if that's what you want then go for it.
Older cars are better than money in the bank these days .
What you going to do with 10k into property ? what you buying a summer house
Buy it , enjoy it and when your bored sell it for some thing else . £600 over 5 years is nothing .
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Fordmad! (01-12-2016)
01-12-2016, 06:12 AM
#20
Last year i borrwed £10k to buy my mk3 focus ST, im with lloyds and a £10k loan was very reasonable, i cant remember the exact interest but it was about £700 over 4 years. I had £5k to put into the car. Repayments were a little over £200p/m
In the end i went with the royal bank of Fudge and borrwed the £10k off the old man paying back £200 a month interest free.
Only 3 years to go
In the end i went with the royal bank of Fudge and borrwed the £10k off the old man paying back £200 a month interest free.
Only 3 years to go
01-12-2016, 01:30 PM
#24
PassionFord Post Whore!!
a loan is your only option if you dont have the cash, you cant finance an old seocnd hand car unless you buy from a trader and then you will be paying over the odds and the apr wont be competitive.
you say it would leave you skint? what do you mean?
you say it would leave you skint? what do you mean?
01-12-2016, 04:43 PM
#25
PassionFord Post Whore!!
Thread Starter
By skint i mean i can afford to buy one just but then id of spent all the cash i have saved so would rather pay a loan easy month and i wouldnt really notice it then
01-12-2016, 05:15 PM
#26
cossie fan (unluckerly)
Not everyone can afford to buy the car they want outright there's nothing at all wrong with borrowing the money a hell of a lot of people do it lol. If you can budget for the repayments and it's something you really want why the hell not your only here once
01-12-2016, 06:20 PM
#28
Why wouldn't you use someone else s money at these ridiculous low interest rates instead of your own.
The value of the car will exceed the interest on the money owed if kept half right.
I do agree with you when people put themselves upto their neck in debt for new cars when they lose so much value in the first few years.
Focus rs is a safe bet
01-12-2016, 08:05 PM
#29
Using credit cards is another option. If you can get a loan of that much you'll be able to get 2 cards say for £5000 each. Get cards that have 0% money transfers for the longest period you can. Transfer the money out. You'll pay something like £70 for the transfer that'll be added to the credit amount on the card.
Then if the period runs out just do a balance transfer to another card for whats remaining. Cheapest way and won't be paying any interest while you've been loaned the money, just some transfer fees which are far less than the interest on a personal loan!
Then if the period runs out just do a balance transfer to another card for whats remaining. Cheapest way and won't be paying any interest while you've been loaned the money, just some transfer fees which are far less than the interest on a personal loan!
02-12-2016, 01:06 PM
#36
PassionFord Post Whore!!
Thread Starter
Been for sale for a while but think its more the time of year then anything. Body work has a few scrapes but nothing serious. Im guessing the right time of year its a 10k car I've agreed a deal at £8750 which i think is not bad considering.
02-12-2016, 07:17 PM
#37
I've found that life I needed.. It's HERE!!
Using credit cards is another option. If you can get a loan of that much you'll be able to get 2 cards say for £5000 each. Get cards that have 0% money transfers for the longest period you can. Transfer the money out. You'll pay something like £70 for the transfer that'll be added to the credit amount on the card.
Then if the period runs out just do a balance transfer to another card for whats remaining. Cheapest way and won't be paying any interest while you've been loaned the money, just some transfer fees which are far less than the interest on a personal loan!
Then if the period runs out just do a balance transfer to another card for whats remaining. Cheapest way and won't be paying any interest while you've been loaned the money, just some transfer fees which are far less than the interest on a personal loan!
Decided I'm going to do it.
Anyone know the car it been on ebay a while.
http://www.ebay.co.uk/itm/1222097232...%3AMEBIDX%3AIT
Anyone know the car it been on ebay a while.
http://www.ebay.co.uk/itm/1222097232...%3AMEBIDX%3AIT
