So i'm looking at buying a car now that I have a part time job that pays a decent amount. I was thinking about taking out a loan to pay for it but I thought, 'why don't i just open a student bank account and use the over draft in order to avoid paying interest?'
Would this be at all possible? First trust offer £1850 to first years and that all I'd need really, so I thought that would be the best bet.
I did try ringing a few other banks and talking about it but any time I mentioned that the money for a car they all told me that I should take out a long (usually at about 20% :|)
Anyone have any input or help?
x Turn on thread page Beta
Car finance help! watch
- Thread Starter
- 09-02-2010 17:46
- 09-02-2010 18:58
Are you actually a student? If you aren't at or about to go to university, you can't have a student account with the associated interest-free overdraft. You should also bear in mind that when you cease to be a student, you'll lose the benefit of that overdraft, so you will start paying interest when you graduate. You will probably find that you need that overdraft whilst at uni, probably not a good idea to eat into it before you've even started.
You are right that general unsecured finance is very expensive, particularly for someone like yourself without a credit history or significant income, so should probably be avoided. Perhaps your parents would be prepared to lend you the money? Or perhaps you should try getting a real banger at something under £1000
Obviously its your decision, from experience just be careful
- 09-02-2010 22:33
I bought my car on finance and wouldn't recommend it! I don't think I got too bad a deal, but I just don't like buying on finance personally. At the time I couldn't afford to buy a car in cash though so it was my only real option as I can't drive my mum's car. I have to drive for work so not having a car wasn't an option as I live 35 miles away from where I work. Anyway, what was the point in learning to drive if I wasn't going to get a car and drive after? I passed after 2 months learning though so didn't have time to save any money other than the deposit I paid!
If it's your first car I'd recommend you just buy something cheap and oldish and avoid buying on finance unless you have no other choice!!
Check this out:
"Step 4 - financing it"Last edited by aimeelala; 09-02-2010 at 22:37.
- Thread Starter
- 10-02-2010 00:43
Yeah, I'm half way through my first year at QUB