I tried to get a loan from the bank
So I basically want to buy myself out of my PCP (Personal Contract Purchase) finance agreement as driving to work at my new job is going to work out as more mileage than I have in a year, and that’s without driving around my local area, or when I visit family in Worcester and Yorkshire!
I got my PCP when my 15 year old Vauxhall Corsa started to have more problems than it was worth. It was such a good little car and they’re really well known for being reliable first time driver cars but started to become a little too unreliable for my liking, particularly as I was driving to university in London 3 times a week and I didn’t really want to break down on the A3, late at night on my own. So my only option was a PCP as I didn’t have enough savings for a decent car but I did have a monthly wage coming in. To be honest, I’m really glad I did, my Hyundai i10 is a nice little car and it’s so light that my 1.2 Litre engine is fine! Everyone says it’s an old grannie car, and it kind of is, but it’s cute and I like it!!
So I’m going to ask the bank for a loan to buy myself out of my PCP, I’ll own the car and owe the bank monthly payments instead.
Lesson number 1
I have to make an appointment. – first lesson learned. Although I couldn’t find it on the website ANYWHERE, it just said come and see us, which I did…to find out I needed an appointment and there weren’t any for weeeeeks.
Also, the woman who was booking my appointment in was saying Saturdays are really busy and get really booked up and week days are much better and I’m stood in front of her like obviously, you shut at 4 on a week day!!!!!! 4! I work Monday – Friday 8-4:30 and then I have a 40 minute drive home (on a good day) – no way in shit am I making it to an appointment before 4pm!
Luckily, a nearby branch has an appointment this Saturday so I’ll be heading down there. It’s super annoying though because I have to go all the way into the town centre for what I imagine will be no more than an hour…..it’s also driving and parking when I could have walked to the local branch. Cool…
Second time unlucky!
I turned up for my appointment to be told I was at the wrong branch. I just asked them to cancel it and I’ve rearranged it. Honestly, the woman that booked it definitely told me the branch I went to, I would have never agreed to go to the branch that she did book it for. Just the most frustrating thing and the worst start to what I hoped was going to be a much easier process. I’m trying to adult and let you all know about asking the bank for a loan and the bank just don’t want me to adult apparently.
I finally had my appointment at the bank. The loan for my car isn’t meant to be, the APR rate on the loan that the bank wanted to give me was over 5 times more than the APR that my car finance is which is fine for now. What is does mean is that I will probably have to save up the final 3k to buy my car at the end of my PCP, not the end of the world as I really like my car, but I have to make sure I focus on saving that much up. An ISA would be perfect for this but you can’t open more than one ISA in a financial year (something I learnt at my meeting and was super helpful!!) and I’m all for opening a housing ISA at the moment to get a start on it. Luckily I have a couple more years until my PCP is up.
The meetings are an hour to an hour and a half usually, and the lady from my meeting was really friendly and helpful. It wasn’t as scary as I thought it would be.!They had a big iPad in front of me where everything was done so you could see everything and the meeting was recorded for your record with the bank and also for training purposes.
I also learnt that you should take EVERYTHING with you that you could possibly need. They told me I needed to bring my bank card and some ID, and I also needed the settlement figure for my car in the letter/email that they sent me. However, when the lady asked me what my car APR was, I had no idea. Something I should have just taken with me, luckily I was able to ring up the finance company and get it over the phone. I needed to take all the information with me that related to my car finance agreement in hindsight, just in case. It’s not the end of the world, as it was able to be sorted, but I would recommend taking any information with you that you have about the subject you’re having the meeting about, because I would never have even really thought about the APR rate (which is kind of stupid when you think that’s a main factor to do with loans, but this is why I am learning to adult, and it’s also why I’m writing a blog to help anyone else who is thinking “why didn’t they teach me this in school?”)
Whilst I was there, she also asked me if there was anything else she could help me with. Maybe savings etc and we did look through the savings accounts but i decided the account I have is best for now. They have just started something at the bank where when you spend something on your card. Say you spend £2.50, the bank round it up to £3 and the extra 50p would go automatically into your savings. I decided to switch it on for the time being to try and save some extra pennies and if I hate it, I’ll turn it off next month! I’m quite good at saving money but I imagine it would be really handy for someone who struggles to save, so it’s like saving without having to think about it. Obviously the pennies add up over time!
Look after the pennies and the pounds will look after themselves – or whatever the saying is!
So I tried to adult and it was interesting to experience but it wasn’t meant to be, but at least I know what to expect if I need a meeting at the bank again!
Onwards and upwards for now as I have lots of fun things (and also boring practical things) that I want to be saving for at the moment!!
Have you read my previous blog posts?
There’s one for the History nerds,
and one for people that like make up >>> Current Faves <<<
and there’s one for the people who want to know they’re not alone in feeling a bit crappy from time to time >>> Trash <<<