Loan trouble!

jonny14391

Hi all im a 20 year old needing some advice, Im looking at trying for a loan for 7500 for a car and insurance, i have worked out it is affordable with the average rate loans i have seen on comparison sites but having applid at zopa and sainsburys and been rejected i am now stuck what to do.

My grandma has offered to try for the loan but i wanted to take responsibility myself, so just wondering what you guys advice i earn 450 a month as i am part time and a student at college

Errata

what you guys advice

Look at very much cheaper cars than you are, and don't get your granny into debt.

WhiteHorse

OK ... straight question, straight answer.

Spending £7500 on a car at your age and in your circumstances is madness. Get a cheapo runner.

It was decent of you to refuse your grandmothers offer. No good would have come of that.

DCFC79

Well you now have 2 rejections on your file which could be bad. Have you thought of trying your own bank since they know if you aren't spedning above your means.

OR

You look at cheaper alternatives, a few people i went to college with bought cars that were less than £1k nad the cars were fine albeit a little old and slow but were still a runner.

jonny14391

im still yet to try my bank, and the 7500 isnt just for a car, its for this years insurance and next, and i wouldnt be getting her into debt id be paying her through direct debit

BoGoF

jonny14391 wrote: »

im still yet to try my bank, and the 7500 isnt just for a car, its for this years insurance and next, and i wouldnt be getting her into debt id be paying her through direct debit

But who's name is on the loan.....yes, dear old grannies so she's the one in debt.

Back to basics....how much do your earn and what other debts do you have?

DCFC79

jonny14391 wrote: »

im still yet to try my bank, and the 7500 isnt just for a car, its for this years insurance and next, and i wouldnt be getting her into debt id be paying her through direct debit

Have you had a read of this thread about money being lent between familiy members, what if the 2 of you have a falling out or for some reason the payments stop and your gran gets threatening letters demanding payment. I take it you have a certain car in mind when you mention insurance.

Errata

jonny14391 wrote: »

im still yet to try my bank, and the 7500 isnt just for a car, its for this years insurance and next, and i wouldnt be getting her into debt id be paying her through direct debit

You can buy a reasonably reliable car for 3/4k. And if you can't understand what your granny getting into debt on your behalf means I'm not surprised you can't get a loan.

jonny14391

The car i have in mind is between 3/4k yes i know which i want its reliable cheap to insure, tax and good on fuel, i will look at that thread though and i have £30 contact lenses and £30 gym i dont pay rent and get paid between £400-£500 a month

BoGoF

So you have an income of £6000 max ? A £7500 loan just won't happen

jonny14391

over 5 years the monthly payments are more than managable though but i suppose its alot the other option would be to buy the car on finance and get a seperate loan for £4000 for insurance for a few years