Is it worth taking out a loan for a car?

[minux]

Are you sure? I know you can have a bad credit rating, but i thought that having loans, credit cards, etc and paying them on time gave you a good credit history for future loans.

Request a copy of your credit file and see for yourself. No where does it mention what loans you have had, what loans you have paid out etc. All it lists is bad debts and applications. The application just says who accessed your file.

 

[levymetal]

your minimum repayments over 4yrs would be around $300pw

how the HELL did you get that figure? a $10,000 loan with 13% p/a interest over 4 years would work out to roughly $70 a week. you are WAY off the ball park.

 

[Escape-The-Fate]

i got a 10g loan thru suncorp not to long ago...i earn 430 bucks a week and monthly repayments over 4 years is 283 bucks...i pay 200 a fornight to get it paid of quick and get by saving on the off week i dont pay for my car and i aways have money to go out..if i paid the minimum i would be living very comfortably but i choose to pay it quicker because i hate owing money to ppl haha

 

[Joe Peeps]

Minux is right - you wont get anything good on your credit file.

What you are most likely referring to is the spending habits on your accounts/cards do actually contribute to a credit "profile" with the institution you hold the accounts with - this is then used for personal loans assessment, card limit offers etc.

 

[gopher]

if you want it and can afford the repayments then go for it:thumbsup:

 

[vlv8vic]

why not. every other kid is doing it. Don't listen to whatshisname though who sprouts **** about getting a good rating to buy a house. I'd never even had a credit card when i bought the house. "good" ratings on your file don't exist.

 

[nemesis_adrasteia]

the question is will you be happy to drive that car for the next 5-7 years, im assuming that your a P plater cos your an apprentice but after you get off your Ps you might want a V8 or a turbo and youll already have a loan, thats why i didnt get a loan cos i want a more powerful car when im off my Ps

 

[vlv8vic]

the question is will you be happy to drive that car for the next 5-7 years, im assuming that your a P plater cos your an apprentice but after you get off your Ps you might want a V8 or a turbo and youll already have a loan, thats why i didnt get a loan cos i want a more powerful car when im off my Ps

Just trade it in and extend the loan. I wouldn't have done it at his age but it really is **** all money in the grand scheme of things. If he was still paying it off in 5-7 years he would have failed miserably.

 

[nemesis_adrasteia]

Just trade it in and extend the loan. I wouldn't have done it at his age but it really is **** all money in the grand scheme of things. If he was still paying it off in 5-7 years he would have failed miserably.

wouldnt you lose a fair bit trading it in?

 

[vlv8vic]

wouldnt you lose a fair bit trading it in?

yep, but if the fella is looking to get a loan on the car then losing money isn't one of his worries.

My folks change over their car every 2-3 years so they only lose a little at a time. Over the course of their life they'll lose about the same amount as they would have had they bought a new car at the start and run it into the ground - only they have a new car all the time and don't have to worry about breakdowns etc.