21 year old Daughter buying new car need advice

whispony

Hi

My daughter who's 21 has decided to buy a new car. She has found one she want that cost just under £6000. She has a trade in which is worth approx £1500.

She tried to get a loan for £5000 (cheapest loan option)from Sainsburys but has just been turned down. I suspect it's because she lives with parentals and not a home owner. She has a store card and a credit card neither of which have much outstanding about £300 between them. I thought this meant she would be credit worthy for a loan.

What should she do now as I'm worried if she goes for the garage finance and gets turned down she has no more options due to searches on her record.

Chris.

Mini_Bear

is your daughter on the voters roll and does she have a mobile phone contract? - both will increase a creit score and without them she will not have much credit history.

whispony

Yes she has a phone contract and is on the voters role at the family address.

Lemonade_Pockets

I would expect the garage could get it accepted with you as a garauntor.
IMO you are more likely to get accepted by dealer finance as it is secured against the car where as a loan from sainsbury's is not. Also as mentioned HP providers usually have the facility to add a parent on to make the payments if your daughter fails for any reason.

MX5huggy

Have you pulled her credit file? to see what is on it?

whispony

Thank you LP I didn't know you could do that I think that would be the way to go.

I haven't pulled her credit file as when I've tried doing mine in the past I always seem to end up paying for it and having to cancel later.

Lemonade_Pockets

No worries. Keep a eye on what rate they try and charge you though.

If it is a brand new car the rate may well be lower than sainsbury's as the MFR's sometimes subsidise them to encourage ppl to buy new cars.

If it is a used car it will undoubtedly be higher than sainsbury's but to a certain degree should be negotiable.

jimpix12

If possible when you apply again, lower the amount to say £4500 and plonk down £500 as a deposit. It's amazing to see what sort of difference reducing the loan amount will make.

Also, I would definitely recommend you pay for the credit report, you can obtain them for £2 and it's always a real insight if you've never seen yours before/for a long time. Definitely helped me in applying for credit!

hewhoisnotintheknow

i would tell her to save up if she wants something

she will thank you in a couple of years when she still has 4 grand to pay off on a car thats worth 2

whispony

Thank you for all your advise.

I love this website, I always manage to find an answer to a question.:rotfl:

mystic_trev

whispony wrote: »

Thank you for all your advise.

I love this website, I always manage to find an answer to a question.:rotfl:

or some @reshole to question the answers! :rolleyes: