Loans for people under 21

EV-ER-TON

Hi i have been advised to join this site by a friend, in order to gain useful advice from people who know more about loans than i do.

I am 19 years old and seek a loan in order to buy a car that i do need for work. I had an appointment today at my bank abbey national but i was not accepted.. the reason they gave was because of my age. The bank informed me that it is quite difficult to get a loan at my age.
Any advice or guidance any of you may have would be greatley appreciated.

babyharry5

Hi there
as you are younger and probably have no previous history of credit repayment - the banks will consider you a higher risk as they have no way of knowing if you will pay back. The banks are being notoriously tight with their lending at the moment as they are having to write so much debt off from their previous 'loose lending' years.
A better option may be to take out a hire purchase agreement where the company at least have the option to take back the car in the event you default on your payments. but watch the apr!
But one thing - is there no way you could save for the car first? take a bus, train,cycle, share a lift?
what about a motorbike/scooter?
all these are cheaper options - once you start with the old car loan it's money money money
insurance tax mot tyres servicing repairs loan payments etc etc
think long and hard before you do this!

natweststaffmember

The bank would have considered previous banking history with them, ie bank charges. They would have considered income and outgoings. If there is no "free income" ie, enough money to live on once rent, bills have gone out then they would have declined it. I would suggest as babyharry has suggested above... Remember to think about car insurance, roadside recovery, car tax, etc,etc, into your budget. As a new driver the insurance will be expensive.

EV-ER-TON

the problem is that i am a football coach, i do an awful lot of miles each week. Most of the time i have to travel to area's of merseyside on my own. Also being a football coach, i need to carry equipment in my car.

I do not want to go down the finance route if i dont have to as i believe its an expensive route to go.

southernscouser

I got a car loan at 19. I also needed a car for work.

That's how it all started getting into debt for me. All £38k. :doh:

I'm not saying you're as stupid as me and I don't want to preach to you but I do want to offer my experience. Save for and buy, a cheap car. Then save for a better car while you run the cheap car into the ground. Upgrade as you earn and save more. Don't try walking up the ladder without missing the first few steps as you are more likely to fall.

I know you'd probably like a new/newish car, but trust me, when you get those first dents, prangs, scratches it will be so more bearable on an old car that has been through it all.

Plus you'll save yourself a fortune in insurance.

poet123

I would second that,especially as you will be on muddy unmade car parks,with stray balls heading for the cars and kids kicking balls around them......oh no,go down the older car route for now.

EV-ER-TON

I take into account what you are saying, but i have drove for 18 months now and have gone through 2 old cars.. In my experience, i have put silly amounts of money in keeping them cars running by getting jobs done on them when needed.
I just want a loan so i can get a reliable newer car, cause as i said i do quite a few miles each week.

jonesMUFCforever

Who do you work for?

If it is a local authority for example don't they have a scheme whereby they will finance a car for you whilst taking the repayments out of your salary?

EV-ER-TON

That aint an option mate.
Does anybody know a loan company that i do stand a good chance of getting accepted by.

dannynixon

a sub-prime lender? You will pay the price for it though

jonesMUFCforever

EV-ER-TON wrote: »

That aint an option mate.
Does anybody know a loan company that i do stand a good chance of getting accepted by.

OK From what you have written it will be difficult to get you a decent rate loan.
Have you any savings, do you put anything by on a monthly basis?