Best loan for an 18 year old?

shop-to-drop

You don't mention how much you've saved already? Since you've wanted a car so bad for so long you must have a nice bit saved. If you've not saved that is not a good indicator of being able to afford a loan. You've had good advice. Definitely save rather than borrow and buy what you can afford. Don't risk debt.

Congratulations on passing your test.

will369

Ok


I think I am going to go ahead with the loan, but just ask for abit less.

The car will cost 1000

and the insurance for a year will cost 1000 aswell



I have applied for a loan with Natwest.. they said its been approved but they can still decline... because I have just started my job. Where else can you recommend that I can get a loan?


Thanks

will369

But I just have to pay £100 back a month

I can do that,


and If I get hold of some more money I can pay a big sum back in one go.

shop-to-drop

will369 wrote: »

But I just have to pay £100 back a month

I can do that,


and If I get hold of some more money I can pay a big sum back in one go.

You need to borrow from family if you want that kind of arrangement. Have you looked into how loans work with banks? You need a full understanding before going ahead. The car is going to cost you so much more if bought with a loan rather than waiting a few months to save.

Malky

OK, so you get a loan for £2K. £1K for the car and £1K for insurance. With loan repayments and running costs where are you going to find the insurance premium next year for example? You only earn 400 per month and you have to live. Look at the bigger picture because if you don't, this time next year you'll probably double your debt and then you're on the slippery slope.
Get a cheap runaround and pay off your insurance by DD every month. Do you really want to be paying off your first years premium in 5 years time?
Also, try and get extra work if you can. A P/T job perhaps?

will369

shop-to-drop wrote: »

You need to borrow from family if you want that kind of arrangement. Have you looked into how loans work with banks? You need a full understanding before going ahead. The car is going to cost you so much more if bought with a loan rather than waiting a few months to save.

The bank said that they will give me £4000 and I have to pay £100 a month over 5 years.

Am I wrong?


What do you mean by You need a full understanding before going ahead ?

PNPSUKNET

£4000 over 5 years attracts £2k intrest. Thats quite high, but if its all you can get and you want to jump in.

koopa_coffee

will369 wrote: »

The bank said that they will give me £4000 and I have to pay £100 a month over 5 years.

Am I wrong?


What do you mean by You need a full understanding before going ahead ?

So you will end up paying back £6000 and it will take you FIVE YEARS to pay off this loan.

Why can you not just WAIT and save up for a few months to buy the car outright and pay the insurance monthly?

Seriously you need to change your attitude to life and spending if you don't want to end up in debt for most of your adult life.

will369

What is wrong with me taking out a loan.. the bank saying I have to pay £100 a month.. and me being able to pay that £100 back each month?

will369

I hope to pay some back in a lump sum