Car loan

Payless_2

My 24 year old son wants a loan of about £7000 for a new car. According to Experian his credit rating is satisfactory. He has no debts and has never had any credit but does have a contract for his mobile phone. He is in full time employment and has been with the same employer for over 2 years now.

Is he likely to get this loan? I don't want him to start applying if he is going to wreck his credit rating. The cheapest loan he could get would be with Tesco but would he be better off asking his bank even though the interest will be higher?

Fiddlestick

Payless wrote: »

My 24 year old son wants a loan of about £7000 for a new car. According to Experian his credit rating is satisfactory. He has no debts and has never had any credit but does have a contract for his mobile phone. He is in full time employment and has been with the same employer for over 2 years now.

How much does he earn in relation to that £7000?

It's a reasonable chunk of money to lend to someone without a credit history (mobile phones don't really count as they aren't revolving credit).

I'd suggest asking his bank first as they can see hos he has conducted his account and might be willing to lend the money based on his previous financial dealings with the bank.

Payless_2

He only earns about £14000 a year but is due an 8% pay rise next month. He wants the loan over 4 years

Fiddlestick

Payless wrote: »

He only earns about £14000 a year but is due an 8% pay rise next month. He wants the loan over 4 years

No chance then, sorry.

Payless_2

Any idea what the max he could borrow might be? His last car cost about £1,500 and ended up needing loads doing to it. Now, 2 years later, it's costing a fortune just to stop it falling to bits

PNPSUKNET

big diff between £1,500 and £7,000 . Plenty of cheap cars £2-£3k out there that are good