Provisional licence holder and car finance

tote_alley_stressed

:mad::mad: Advice please as to how my 20 year olds credit had been affected by him applying for car finance and being rejected on the grounds of him holding a provisional licence.
Before applying I queried this with the salesman at dealership and was assured that this wouldn't be a problem.
My son is responsible enough to take on the debt and agreed for the application to be proposed only to be declined unless I would be a guarantor.
This can't happen due to my credit commitments and so the car is a no go but my son and myself are worried as to the searchesthat are now on hs credit report and the subsequent rejections.
He is now going to save up for a car but has wondered if he could apply for a small loan with his bank and when after what has just occured.
He sits his test in a few weeks and being your average 20 year old would have liked the opportunity to have his own car and the responsibility that comes with it

Tixy

No rejection will show on his credit file. All that will appear on his file is a credit search for an application for credit (unless he has done more than 1 application/search). It doesn't say whether or not he was accepted.

Generally its advised to have no more than 3 searches within a 6month period. So if this is the only recent search on his file then he could try applying for a loan with his bank. I'd suggest he talks to them first in branch to see whether they think an application has a chance to be accepted based on his circumstances, his income etc.

But saving up for a car instead would be an even better idea

KingElvis

Normally a condition of car finance is fully comp insurance so I struggle to see how this could happen if he only has a provisional.

I may be wrong but I saved for an old banger as my first car and insured it on the day I passed my test (I am old though LOL)

CLAPTON

how much does he want to borrow
how much does he earn
does he have any credit agreements at the moment (CCs or overdraft)

RichGold

A good first car these days isn't that expensive. He'll be better saving for one. Remind him that its rare to have the car you want for your first car.

CH27

Has he costed car insurance? Can he afford loan repayments & the insurance?

Stageshoot

KingElvis wrote: »

Normally a condition of car finance is fully comp insurance so I struggle to see how this could happen if he only has a provisional.

I may be wrong but I saved for an old banger as my first car and insured it on the day I passed my test (I am old though LOL)

Getting Fully Comp insurance is easily possible on a Prov Licence, I purchased my daughter a car for Christmas 2 years ago, and she was the registered keeper and fully insured on it as a learner, (Fully Comp), she passed her test 6 months later and a quick phone call to the insurer changed the policy to Full Licence holder Bonus being she earnt 6 months NCD whilst still on the Prov Licence.

KingElvis

VickyHurn wrote: »

Getting Fully Comp insurance is easily possible on a Prov Licence, I purchased my daughter a car for Christmas 2 years ago, and she was the registered keeper and fully insured on it as a learner, (Fully Comp), she passed her test 6 months later and a quick phone call to the insurer changed the policy to Full Licence holder Bonus being she earnt 6 months NCD whilst still on the Prov Licence.

Fair enough, but what about car finance on a provo?

As I said, I could be wrong

tote_alley_stressed

Call it 'mother knows nothing' but he works full time and has s fair salary for someone his age and isn't irresponsible and he wouldn't listen to me just went along with all the sale blurb. Throughout the conversation I reminded the sales guy he hadn't passed his test and how then could he get finance. 'Don't worry' they told me and once his lessons were paid for he wouldn't notice that much less in his outgoings with buses and taxis (he works from 2 in the morning ). He has a c/c he has never used and an arranged o/d and thats all but he's anxiuos now that it looks as though he is a credit risk. I'm really annoyed with the dealership as he should have anticipated that this was a no go but a sale is a sale I guess - regardless.
He is going to tslk to the bank next week for advice. Should he ask what they think is a reasonable amount to borrow or let them do another search - no please say no.
How long realistically should he wait and whats a good price and where do you go for a decent run around

tote_alley_stressed

Who are the best insurers for this as the one he insured for as a provisional say once he passed his test we have to shop around again

tote_alley_stressed

King Elvis you are right. How come the finance guy at the garage didn't know this? I've just rung him and he said with a sneer 'I'm not a credit expert' - doh so what the hell are you getting paid for