student wanting loan for car

raju786

hi, im in my first year of my degree and i want a decent car, not something that will konk out on me and will last a decent amount of time, so iv decided that a limit of £4000 for a car will do, one problem is coming up with the finance, i know i can keep up with repayments but i would like a car before xmas, im 18, iv got a balance on my credit card of £300 but never missed a payment, have a couple of missed mobile payments, and im a full time student with a part time job, is it possible to get a loan?? of course first paying the outstanding balance on my credit card in full but i dont mind high interest rates as long as its not silly, as it may help to build up my credit rating as well. anyone know of any comapnys that will do this?? i have seen a couple but dont want to run the risk of being rejected and it recorded on my credit file. thanks everyone

Firsttimebuyer_4

If you don't have an income your unlikely to get a loan. Perhaps some unscrouplous company will give you a loan with 35% apr but you should stay clear of those.

You say you know you can keep up with repayments of a £4000 loan. How much do you have stashed away (you don't mention any income)? Why not use that on a car.

£4000 for a car is too much while your a student and unemployed. I understand you want a car (i did not have a car in my student years but it would have been handy) however, you should stick to max £1000 as a limit. You should be able to get something that is half decent. A car for £4000 will also likely to have a high insurance cost since your only 18.

Just my two cents.

davegib20

"£4000 for a car is too much while your a student and unemployed"

i completely agree with this, unless you have lots of savings in which case there would be no point in getting the loan. A £4000 debt is the last thing you want in your first year at Uni. Plenty of student debt will be coming your way anyway im sure. I paid £500 for my car and it has lasted me 2 years so far without problems. I would say get a cheap 'run around' until you are in a position to finance a more expensive car

grumbler

raju786 wrote:

...i dont mind high interest rates as long as its not silly,

And what rate is 'silly' in your opinion? What is silly for a person with perfect credit history and high regular income could be not silly for a student with a little of history and low irregular income.

as it may help to build up my credit rating as well

There are other ways to buid up you credit rating for free. For example, credit cards, one of which you already have.

...dont want to run the risk of being rejected and it recorded on my credit file.

Rejections are not recorded. Only credit searches are.

The last thought :think: : have you tried to get a quote for insurance? It could be about another £1K p.a. ...

xzibit

Yep, I agree, £4k is too much for a car when you're a student, especially if you cannot afford it (which you cannot as you need a loan). You can get a decnt enough reliable car for between £800 and £1500 depending on what you want/need.

ollyshaw

I got my car for £800 its easily the most expensive car I ever bought!

Olly

raju786

im not unemployed, they way i meant i could keep up with repayments is that i recieve a student loan which gives me about £300 a month then from my part time job another £400 to make a total of £700, a lot of this money is not used, but to save up to £4000 it would take a lot of time, i have checked insurance and everything, costing me £500 for a quote as 2nd driver.

xzibit

raju786 wrote:

costing me £500 for a quote as 2nd driver.

Please explain. A second driver? But I thought YOU were buying the car?

raju786

as in sister as a first driver and me as the 2nd driver, common practice for students lol, have been like this for a over a year with my last car

roswell

raju786 wrote:

as in sister as a first driver and me as the 2nd driver, common practice for students lol, have been like this for a over a year with my last car

The problem with this the car would need to be in your sisters name and you wont build up no claims discounts .... the bigger problem is if you have an accident as the second driver they will contact your sister and investigate who uses the car the most .. in your case you in which case they may not honour the claim. So your loan will need repaying your car will need repairing / replacing and your insurance premium will be money wasted.

maybe time for a rethink? with £700 a month and you say most is not "Needed" £300 a month would give you £3000 in 10 months you could get a very good 5 year old car and insuarance probably.

mrcow

I agree that you should be looking to pay this off as quickly as possible if you have a part time job for two reasons:

1. You'd save money
2. You never know how long you are going to be able to keep up the job if your studies become too intense (you don't want to be stuck with a job with your uni work piling up round your ears).

One thought I had was your student overdraft facility? I know that banks offer massive overdrafts these days to students (twelve years ago you used to get £400 tops!). Are they not generally interest free?

You could use that facility to buy a car and then pay it off over the 10 months as described by roswell. If you stalled for a couple of months beforehand, you could save up your insurance money before you buy the car (could you do this by Christmas?).

Which bank are you with, and do they offer an interest free student overdraft? It may not be the £4k you are looking for, but it wouldn't cost you anything in interest and you could get a half decent car with it?