[ rss / options / help ]
post ]
[ b / iq / g / zoo ] [ e / news / lab ] [ v / nom / pol / eco / emo / 101 / shed ]
[ art / A / beat / boo / com / fat / job / lit / map / mph / poof / £$€¥ / spo / uhu / uni / x / y ] [ * | sfw | o ]

Return ]

Posting mode: Reply
Reply ]
Subject   (reply to 7910)
File  []
>> No. 7910 Anonymous
12th June 2020
Friday 8:27 pm
7910 spacer
I've never had a loan before, but a car that I really want to buy has come up. It's about £5k, which I don't presently have in cash. With the interest rates and shit plummeting, is now a good time to get a small loan for a first time?

I have a credit score of 999 according to Experian, have never missed a payment on anything (and pay all my credit cards off in full every month). I work full time and was considering getting £5k over 18 or 24 months.

Any tips for a first time creditee? Should I just go with my bank (HSBC) or a dedicated car loan? I'll be buying privately.
Expand all images.
>> No. 7911 Anonymous
12th June 2020
Friday 8:30 pm
7911 spacer
What is the car?
>> No. 7912 Anonymous
12th June 2020
Friday 8:30 pm
7912 spacer
>> No. 7913 Anonymous
12th June 2020
Friday 8:46 pm
7913 spacer
Getting a loan out for a car seems a bit silly. If you don't have the cash, don't buy it.
>> No. 7914 Anonymous
12th June 2020
Friday 8:59 pm
7914 spacer

If you borrow £5000 for two years at the current best rate, you'll pay less than £180 in interest over the course of the loan. That's pretty good value if you ask me.
>> No. 7915 Anonymous
12th June 2020
Friday 9:10 pm
7915 spacer

Car loans are typically favourable as it's so easy for them to reclaim the car if you do stop paying.

It certainly depends on the car, but a newer/better car for 5k will almost certainly save you money in parts and repairs over buying something you can afford in cash. I've bought a lot of cars over the years and when I pay £1000 for one, I plan to spend at least another grand and a half on it within the first year of ownership, just on keeping it running and legal. With a five grand car (again depending on what it is, but I'm imagining a newish modern hatchback) I wouldn't expect any spending other than consumables.

I have used Zuto in the past to secure a classic car, but that was long enough ago that I couldn't really offer a recommendation now, but they were good to me then. A dedicated car loan will usually be better than just unspecified cash loans, you might even get a free mechanic's check on the car before it is bought.
>> No. 7916 Anonymous
12th June 2020
Friday 9:17 pm
7916 spacer
It's a Lexus LS400. I've wanted one for years. Bulletproof Toyota reliability, 4 litre V8, rear wheel drive, and there's just something about the design that really appeals to me. (Brian won't allow me to attach a photo; it just says "could not create thumbnail")

I'd be paying no more in insurance and tax than I currently am on my car with a third of the horsepower and none of the features.

I don't really see why it is. Most people buy cars on finance, no? With HSBC, there are no penalties for overpayment, so I'd probably do that if I either go with them or a company that allows me to overpay, meaning I'd pay even less in interest.
>> No. 7917 Anonymous
12th June 2020
Friday 9:41 pm
7917 spacer
>, no?

We've told you before about doing this, lad. Anyway, ignore the other lad; his privilege is showing.
>> No. 7918 Anonymous
12th June 2020
Friday 9:57 pm
7918 spacer

I do love those cars. I particularly love the ones with gaudy gold badges and lettering. A good time to buy one too, their prices will only continue to rise in the future. I was looking at one around five grand in Manchester, I wonder if it's the one you want too. I never went to see it, it's just on my list.

>I'd be paying no more in insurance and tax than I currently am on my car

You have conveniently declined to comment on how much fuel you will be using compared to your current car. Don't worry, I won't tell them either.
>> No. 7919 Anonymous
12th June 2020
Friday 10:10 pm
7919 spacer
I was actually going to comment on that; my current car gets about 30mpg average (35 if I'm careful), and the LS400 gets 23 (27 if you're careful), so it wouldn't be a massive amount different in fuel considering I only do about 5,000 miles a year, most of which are motorway. It's a strictly pleasure and convenience car - I wouldn't buy it for commuting.
>> No. 7920 Anonymous
12th June 2020
Friday 10:20 pm
7920 spacer

I assumed you knew what you were getting yourself into, though I will say that 20mpg really does feel a lot, lot less than 30mpg in real world conditions, though if you're mostly going for motorway cruises it won't be so terrible. And the option is always there for an LPG conversion - if I buy one (and I probably will, I have a JDM fetish) then that's what I'll do, a little 50 litre tank in the spare wheel well.

I'm definitely not judging, my supercharged mini does 25mpg ish, and that's my daily driver.
>> No. 7921 Anonymous
13th June 2020
Saturday 8:21 pm
7921 spacer
Got a loan from HSBC 6.1% for 30 months (and as and when I can, I will be overpaying), so a total of 5390 on 5k which is fine by me. It's my bank too so there's just less faff or people to deal with.

Took it for a test drive today and it's absolutely mint. Getting it tomorrow.
>> No. 7922 Anonymous
13th June 2020
Saturday 8:33 pm
7922 spacer

Good stuff lad, please do post a photo/thoughts of it in the /mph/ thread.
>> No. 7923 Anonymous
14th June 2020
Sunday 7:53 am
7923 spacer
Nice work, that's a very reasonable price for a loan - if you can get it from your bank, they are usually the cheapest.

Return ]

Delete Post []