Is Finance Advisable.

Ryan99

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Currently driving a 2008 Jetta but interested in changing to a 2015/16 Jetta GT roughly £11000. Thinking about financing or taking out a loan over 5 years but either way I'm paying an extra £3000. Started a new job a couple of weeks ago and I am getting a minimum of £400 a week home and it works out at £55 per week to pay off the car which I can afford but is it worth paying the extra £3000. Current car is running 100% just fancied a change. Also does anyone know if I can modify a car if I finance it? That's why I'm thinking of paying it off with a bank loan so that I own the car and can do whatever I want to it without taking any chances. Any input is appreciated. Thanks in advance.
 

euge07

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Get a tesco loan. Its really low apr and only about £800-900 interest to repay
 

anlygi

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Where are you getting a loan with £3000 interest on £11k over 5 years? That's very high. I got a £5k loan about 5 years ago from Tesco and paid less than £300 quid interest over 3 years. Their calculator for £11k over 5 years shows £11,818.80. Suppose the rate is based on credit history and it needs to be excellent to get the best rates.
 

Boabybooster

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Currently driving a 2008 Jetta but interested in changing to a 2015/16 Jetta GT roughly £11000. Thinking about financing or taking out a loan over 5 years but either way I'm paying an extra £3000. Started a new job a couple of weeks ago and I am getting a minimum of £400 a week home and it works out at £55 per week to pay off the car which I can afford but is it worth paying the extra £3000. Current car is running 100% just fancied a change. Also does anyone know if I can modify a car if I finance it? That's why I'm thinking of paying it off with a bank loan so that I own the car and can do whatever I want to it without taking any chances. Any input is appreciated. Thanks in advance.
I’m guessing you’re younger, I’d be getting insurance quotes on the newer car with modifications declared before you pull the trigger. I wouldn’t personally be modifying a car on finance as you don’t own the car, worst case scenario you bin it or someone bins into you, insurance doesn’t pay out due to mods and you’re stuck with a finance bill and no car.
 

Q.S Gav

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I’d keep driving the 2008 Jetta for as long as it doesn’t give you any trouble, but if you really want a change a personal loan is the way to go. Tesco, M&S, Admiral, Sainsbury’s etc are all offering 2.9% APR on £7.5 - £15k loans.

I’d aim to pay the loan off in 2 or 3 years. In 2 years the total you would pay back would be £11,330 and in 3 years the total would be £11,491 (cheap money).
 
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bill

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The first 2 years of a new job effects your credit history so you will be getting stupid APR rates like 28% This is because your a higher rise to the loan company.
The first 2 years is the minimum length of service its is known as the qualifying period you can be sacked and cant claim unfair dismissal unless its goodbye because you claimed sexual harassment. Ps forgot religion in Northern Ireland.
 
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wes

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If your young, hold off for a while even start saving towards the car you want, keep the jetta, make sure your jobs secure before applying for any finance or loans. Loans and finance can be obtained too easy, you also need to be prepared to keep said car until finance/loan is cleared.
 

NickR

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Also keep in mind that it's a small percentage of people who get the advertised rates like 2.9%, the rest will get a higher rate.

Think carefully about what you need/want as well as what you can afford if the new job doesnt go to plan.

Good luck in the new job though!
 
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Q.S Gav

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Apis

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Try your bank too. I just borrowed 11k this week and was looking at the 2.9% M&S, tesco etc, but my own bank, Nationwide, was doing for 3.0% so I just went for it for speed and convenience.
 

neil-c

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I’m guessing you’re younger, I’d be getting insurance quotes on the newer car with modifications declared before you pull the trigger. I wouldn’t personally be modifying a car on finance as you don’t own the car, worst case scenario you bin it or someone bins into you, insurance doesn’t pay out due to mods and you’re stuck with a finance bill and no car.

This is true if it's hire purchase etc but a personal loan can be used to buy anything so you could modify the car if you wanted. Just need to check the T&C's of the specific loan.
 

dddrrift

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interest free credit card for purchases if you can get the required credit limit, last one I got was with Tesco and 36months interest free on purchases, 14k limit. Tesco seem to be very competitive for lending at the minute.
 

Chris_702

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interest free credit card for purchases if you can get the required credit limit, last one I got was with Tesco and 36months interest free on purchases, 14k limit.

Car dealers won't accept credit cards for purchase. Most will accept credit card for a small deposit but not a large balance/full payment.
 

Woodcutter

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I would just be careful that you don't buy this newer Jetta and borrow heavily against it, to then want to change in 2/3 years and find it's worth less than what you owe the bank.
 
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Chris_702

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really?? is that a new thing??

As we can no longer charge the credit card fee's - most dealers now refuse to take them at all.
We give discount of the car then end up sucking up the fee too so its easier to just refuse a credit card for purchase.
 

bigZ

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Tarting credit cards is now more expensive than a direct personal loan, unless you can pay the complete balance in the interest free period. The 0% period will be three years at best, but every time you transfer to another card there’s a fee of around 2.7% of your balance, and that’s if you have a good credit rating. As previously stated by other people here, a personal loan is the way to go...if you decide to go!
 

dddrrift

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no i don’t agree, credit cards are only more expensive if you cant use them correctly, and to your advantage. If you have any self control they are as good as free lending. You shouldnt need to transfer to another card when the interest free period runs out, if you have done your sums that is.
 

bigZ

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I’m just going by my own circumstances, I know I couldn’t afford to be paying back 11k over three years...unless I gave up living!
 

Lyons

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Aye, but to be fair then a 0% credit card wouldn’t be for you. They are only going to suit someone that intends to pay it off by the end of the term, or who is prepared to do a transfer. We had a few during the house build and used them until the mortgage payments were released.
 

Mel_45

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I’m just going by my own circumstances, I know I couldn’t afford to be paying back 11k over three years...unless I gave up living!

Even if not paying in the 3 year term, say £200 a month (fairly basic car payment amount IMO) and then transfer at the end of 3 years, the 11K lend would still only be costing £100. No personal loan will come anywhere near that. Everyone gets scared of credit cards, but as said do your homework and use them right its free or virtually free lending.
 

bigZ

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Agreed, and no arguments from me about tarting cards...I’ve been doing it for many years and will continue to do so.
That’s ok if he has an amazing credit score and gets offered that sort of transfer rate and if that’s the case he could get personal finance at a cheaper rate again.
 
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