Car finance Watch

Student1191
Badges: 21
Rep:
?
#1
Report Thread starter 4 weeks ago
#1
I don’t know if I should finance a car because right now I earn about £300 a month from a part time job whilst I’m at college and look to to an apprenticeship after that so I think I would be financially stable enough. My mum also wants me to get a car but not some rust bucket and I think this is my only option because I don’t want to be a bus boy any more.
Posted on the TSR App. Download from Apple or Google Play
0
reply
ltsmith
Badges: 19
Rep:
?
#2
Report 4 weeks ago
#2
why not just get a rust bucket ?
0
reply
Student1191
Badges: 21
Rep:
?
#3
Report Thread starter 4 weeks ago
#3
(Original post by ltsmith)
why not just get a rust bucket ?
Mum won’t let me and she’s paying insurance. “It’s unsafe and you’ll need thousands to repair it”
Posted on the TSR App. Download from Apple or Google Play
Last edited by Student1191; 4 weeks ago
0
reply
ltsmith
Badges: 19
Rep:
?
#4
Report 4 weeks ago
#4
(Original post by Student1191)
Mum won’t let me and she’s paying insurance. “It’s unsafe and you’ll need thousands to repair it”
personally, i'm against car loans 100% but if you really want to take one out then it would be wise to wait until you have a full-time job.
1
reply
Emma:-)
  • Community Assistant
Badges: 19
Rep:
?
#5
Report 4 weeks ago
#5
(Original post by ltsmith)
personally, i'm against car loans 100% but if you really want to take one out then it would be wise to wait until you have a full-time job.
I agree
0
reply
IWMTom
  • Community Assistant
Badges: 20
Rep:
?
#6
Report 4 weeks ago
#6
(Original post by Student1191)
I don’t know if I should finance a car because right now I earn about £300 a month from a part time job whilst I’m at college and look to to an apprenticeship after that so I think I would be financially stable enough. My mum also wants me to get a car but not some rust bucket and I think this is my only option because I don’t want to be a bus boy any more.
£300 a month? Might get you a rust bucket on finance.
0
reply
xDron3
Badges: 18
Rep:
?
#7
Report 4 weeks ago
#7
No finance company would accept that anyway I'd assume as you're way too high risk, just save up if you can and get an old banger. Or rust bucket as everyone is saying
0
reply
PhoenixFortune
Badges: 20
Rep:
?
#8
Report 4 weeks ago
#8
A 17 year old college student with a part time job would not be seen as at all stable by any car finance company. You are much more likely to get finance if you have a full time job that you've been in for at least 6 months.
Last edited by PhoenixFortune; 4 weeks ago
0
reply
StriderHort
Badges: 17
Rep:
?
#9
Report 4 weeks ago
#9
Yeah, your income is nowhere near enough for a new-ish car on finance i'm afraid, a car on finance + bills would essentially take up all of your income and no finance provider could responsibly provide it (you might find some absolute shark of a lender that would, and you'd suffer for it). rust bucket is pretty much your limit.

Maybe have a talk with your mum over why she wants you to get a car and exactly who will pay for what, if she if offering to pay insurance...great, will that be £1000 or £4000? will she get you a black box whether you like it or not? If you have an accident, you'll likely need to immediately pay an excess fee larger than your income, will she cover that too?

If she is the one pushing you to drive and is picky about what car it is....maybe she should provide the car and let you worry about the bills instead?
0
reply
Aaron702
Badges: 10
Rep:
?
#10
Report 4 weeks ago
#10
I'm 18 and got finance of a £24k car and I earn £1400 a month after tax. I barely got accepted so I highly doubt you'll get anything earning £300 a month.
0
reply
Revolver72
Badges: 16
Rep:
?
#11
Report 4 weeks ago
#11
(Original post by Student1191)
I don’t know if I should finance a car because right now I earn about £300 a month from a part time job whilst I’m at college and look to to an apprenticeship after that so I think I would be financially stable enough. My mum also wants me to get a car but not some rust bucket and I think this is my only option because I don’t want to be a bus boy any more.
The anti-PCP brigade is one of the most ridiculous movements, incidentally. It comes down to circumstances and what is best for an individual. There's absolutely nothing wrong about PCP, if you understand the agreement you're entering into it. I've had PCP and I've had outright ownership. The two were down to circumstantial differences, and both were right at their respective times.

Your circumstances are such that I don't think PCP would be wise. £300 a month isn't a particularly high wage, certainly in terms of affording PCP. You have to be able to afford to pay the monthly payments, pay for fuel costs, pay for insurance, and have general maintenance costs (servicing costs, and any parts and labour costs, including renewable items such as tyres or brakes), road tax too. That's before your general living costs, not related to your car.

Assuming this is a first car as a young driver, you'll probably find that your insurance cost per month would be similar to the cost of your car, if not more. You could find that £300p/m gets eaten very quickly.

I'd say you're better saving up and buying something outright, or waiting until your monthly income rises enough to support the running costs of a car, on top of living costs.
1
reply
Student1191
Badges: 21
Rep:
?
#12
Report Thread starter 4 weeks ago
#12
(Original post by Revolver72)
The anti-PCP brigade is one of the most ridiculous movements, incidentally. It comes down to circumstances and what is best for an individual. There's absolutely nothing wrong about PCP, if you understand the agreement you're entering into it. I've had PCP and I've had outright ownership. The two were down to circumstantial differences, and both were right at their respective times.

Your circumstances are such that I don't think PCP would be wise. £300 a month isn't a particularly high wage, certainly in terms of affording PCP. You have to be able to afford to pay the monthly payments, pay for fuel costs, pay for insurance, and have general maintenance costs (servicing costs, and any parts and labour costs, including renewable items such as tyres or brakes), road tax too. That's before your general living costs, not related to your car.

Assuming this is a first car as a young driver, you'll probably find that your insurance cost per month would be similar to the cost of your car, if not more. You could find that £300p/m gets eaten very quickly.

I'd say you're better saving up and buying something outright, or waiting until your monthly income rises enough to support the running costs of a car, on top of living costs.
My friend said it could be better to get a bank loan actually because if you get one between 7.5k and 25k then it’s only 3.88% interest
Posted on the TSR App. Download from Apple or Google Play
0
reply
Student1191
Badges: 21
Rep:
?
#13
Report Thread starter 4 weeks ago
#13
(Original post by IWMTom)
£300 a month? Might get you a rust bucket on finance.
Can literally get a 17 plate fiesta or Ibiza
Posted on the TSR App. Download from Apple or Google Play
0
reply
IWMTom
  • Community Assistant
Badges: 20
Rep:
?
#14
Report 4 weeks ago
#14
(Original post by Student1191)
Can literally get a 17 plate fiesta or Ibiza
Not with your disposable income.

How old are you...?
0
reply
Muttley79
Badges: 19
Rep:
?
#15
Report 4 weeks ago
#15
(Original post by Student1191)
My friend said it could be better to get a bank loan actually because if you get one between 7.5k and 25k then it’s only 3.88% interest
My son got a PCP loan on a brand new car [Citigo] which costs £120 a month interest free [including all services] - he was just starting full-time work so had little credit history.

Car sales are low at the moment so look around - if your mum is helping with insurance then it is affordable.
1
reply
StriderHort
Badges: 17
Rep:
?
#16
Report 4 weeks ago
#16
(Original post by Student1191)
Can literally get a 17 plate fiesta or Ibiza
I think he means you won't get approved for £300pcm of finance repayments on a £300pcm income, it doesn't match up like that.

A highstreet bank loan can in many cases be cheaper but same problem again, your income will really put them off, many banks wont offer overdrafts/credit at all unless you deposit £1000+ a month for example and because these loans tend to be unsecured they often have even higher standards (unlike car finance which is obv secured on the car, so they know they have decent chance of getting their money back even if you fail)
1
reply
Student1191
Badges: 21
Rep:
?
#17
Report Thread starter 4 weeks ago
#17
(Original post by IWMTom)
Not with your disposable income.

How old are you...?
17. They’re only 150 to 200 a month
Posted on the TSR App. Download from Apple or Google Play
0
reply
IWMTom
  • Community Assistant
Badges: 20
Rep:
?
#18
Report 4 weeks ago
#18
(Original post by Student1191)
17. They’re only 150 to 200 a month
You can't get car finance at all then if you're only 17, so it's a moot point.
0
reply
Unistudent77
Badges: 15
Rep:
?
#19
Report 4 weeks ago
#19
(Original post by IWMTom)
You can't get car finance at all then if you're only 17, so it's a moot point.
Slightly separate point, but are you against PCP? I’m talking more generally?


OP - You can get a cheap car which isn’t a ‘rust bucket’. You do not need a 2/3 year old car.
0
reply
Student1191
Badges: 21
Rep:
?
#20
Report Thread starter 4 weeks ago
#20
(Original post by IWMTom)
You can't get car finance at all then if you're only 17, so it's a moot point.
Almost 18 though obvs
Posted on the TSR App. Download from Apple or Google Play
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Do you give blood?

Yes (46)
9.22%
I used to but I don't now (14)
2.81%
No, but I want to start (177)
35.47%
No, I am unable to (117)
23.45%
No, I chose not to (145)
29.06%

Watched Threads

View All