Provisional licence holder and car finance

Tixy

There are some tips on here, which would be worth a look.
Car Insurance for Young Drivers

Scarily expensive though for kids these days.

Stageshoot

tote_alley_stressed wrote: »

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

We went with Admiral/Elephant/Diamond all the same company,

Took a 10 month policy it cost £700 for 10 months on a Citroen C2 (57 Reg), with Daughter (18) as Main driver and Self & OH as extra drivers (Really brought the price down)

Once passed test at 6 months it cost £37 to upgrade to Full licence holder for the remaining 4 months, and at renewal with 1 Years NCB policy dropped to £576

To be honest cannot recommend them enough, found all dealings with them to faultless (Including during a claim my daughter has just had).

We also read loads about having to shop around again once test passed but the above company seems good for new drivers (may change though)

RichGold

tote_alley_stressed wrote: »

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

He's getting paid to sell cars, that's what. These people aren't there to help you at all, they are probably commission driven, and the only reason he pushed your son towards the sale was for his own ends.

Remember, it doesn't matter to him if you're son is refused credit, all he was interested in was the wage at the end of the month.

bouncydog1

Go over to the insurance board before your son buys a car that he cannot afford to insure (and I am not joking or scare mongering).

Insurance has rocketed for young drivers in the past few months, with some areas being almost uninsurable.

Other people are very quick to point out "we only paid x for our son/daughter" but their circumstances are likely to be very different to others e.g. low risk area for insurance purposes etc.

Your son should really speak to a reputable insurance broker and get some idea of what the insurance on a range of vehicles is going to cost before he even thinks of buying the car - many of the vehicles attractive to youngsters e.g. corsa's, fiestas, etc are the most expensive. He may well find that the cheapest e.g. skodas etc are decidedly uncool!

Dave101t

its a great idea to simply save up and pay for a car cash. teaches lots of valuable lessons, of course, finance on a spanking new car for a kids who will then trash it....will also provide alternative valuable lessons...

JasX

tote_alley_stressed wrote: »

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

perhaps he would benefit from a basic financial education before being allowed to run headlong in.... eg does he EVER plan on owning a house or is a rusting lump of metal all he'll be happy with 8 years down the line?

how does car plus insurance plus saving for a house deposit plus pension plus cost of interest on an expensive car loan he took to avoid saving up for the first item on the list fit into his planning?

clairbear1000

Hi,

I took out car finance and fully comp car insurance when I was a provisional driver.

Hope I wasn't breaking any law!

Things didn't work out great for me, it took me much longer to pass my test than anticipated so my lovely new car just sat there, whilst I paid for it each month. I also had a balloon payment at the end of the term, but part-exed it before it got to that. It was only when as I got older I learnt about all these things and paid off my car properly.

If I was doing it again, I'd have waited for the car, and if I had to have it, I'd have taken a loan out, so when the payments were finished there was no probs.

Good luck.

PS. The only good thing was that I racked up lots of no-claims!!

geoffky

i bought my daughters first car for £1,5k and she has too pay all the other stuff like insurance at £155pm...i would never pay more than that for a first time driver as the odds are the will bang it at some point...and she has on the wing. and i scratched my first car and every one after even the one i have now someone has trolleyed it... and her first car sat there for six months until she passed....get your son a banger.

Forwandert

tote_alley_stressed wrote: »

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

What did you ring him for? he's made a mistake, i don't see why he needs someones parent harrassing him afterwards.

Dellers

Why is he even getting a car now ??? He cant drive on his own LEGALLY anyway without a full licence driver next to him . Plus if he fails the test what is he going to do pay for a car and insurance when the car is sitting in the driveway until he passes ?? serious questions .