Loan for 18 year old

chambta

DCFC79 wrote: »

Why dont you get a job and save up, ok so you maybe wont be able to save up the whole amount you want but whatever you save would help

Where did the OP say he had no job?

InMyDreams

A few days ago there was a similar post (except the 18yo wanted a loan for the car as well as the insurance :eek:) and many posters advised the kid to save for the car and pay the insurance in monthly instalments.

So now one comes along who seems to have done just that and is still being treated like a naive child. I'll bet if he's read the post I've linked to he'll be very confused now.
What is the difference between paying the insurance company in monthly instalments or paying a bank in monthly instalments if both are over the same time period? Just go with the lowest APR.

Don't get me wrong, I agree that both are as bad as each other and I wouldn't advise the OP to do either, but I'm not sure why the OP from the post I linked to was being advised to do just this. I suspect davidtlogan has already read that thread and actually what he is suggesting seems even more reasonable *if* he can find a loan for a year with a lower apr..

To davidtlogan; why not open a regular saver (they tend to have the highest interest rates) and prove to yourself that you have the discipline to save that monthly amount. Then after 12 months you'll have the money for insurance up front (plus the interest which you can keep) and can start saving in advance for next year's. (Then at the end of that year, if you find that running your car has been more expensive than you anticipated and you haven't managed to save for the insurance at the same time as running the car, you can get rid of the car having just lost your savings rather than finding yourself committed to a loan you can't repay.)

CLAPTON

davidtlogan wrote: »

Hi, after pricing car insurance for someone my age I found out the cheapest is £1392, paying that in installments would then become £1592.

I have looked on various sites and I am looking to take out a loan for £1,400 and pay the insurance off in one payment and pay back the bank, which should work out to be less than if I paid the insurance company in installment (which was £1592).

Basically, I want a loan of £1,400 that, when repaid, will have be less than £1592, there are many, although I haven't been approved.

Does anyone know of any loan company or bank that I will succesfully get a loan from?

firstly congratulations for realising that the monthly insurance is a very expensive option

in fact it works out at about 29% APR

however, I doubt if you will be able to better this given the current economic climate.

rictus123

Im 18 and i have a loan which is perfectly manageable. Its just all of a sudden you think what if something goes wrong etc im not going to bother lecturing you just take it from someone who is 18 and has a loan, avoid it at all costs. What happpens if you crash the car and you are at fault(if TPFAT)then you have no car and a loan to repay? Loan more to get another car and more insurance?

davidtlogan

@ InMyDreams - yeah I did read that post but he seemed to want a loan without really thinking through what he was paying it for.

At the advertised rates, it seemed to be cheaper to pay back the loan in monthly installments than it was to pay the insurance company. Although, as people have said, I assume my age and other factors will result in me gettin higher rates.

Regardless, I have a meeting with the bank as my account needs to be upgraded (I was 18 last month ) and I can enquire there, if I don't like the sound of the loan then I guess I'll just save up.

@ DCFC79 - I've had a job since I left school.