Car finance for 18 year old with guarantor?

Ryy90

I wasn't expecting a set in stone answer, perhaps just what other people have experienced? I know that all circumstances can differ!

skintandscared_2

Ryy90 wrote: »

I wasn't expecting a set in stone answer, perhaps just what other people have experienced? I know that all circumstances can differ!

Okay. Well, for a start are you classified as self employed or employed? What is your annual salary? Current credit commitment (I presume nil if you pay your card off each month)? Have you any missed/late payments? How much finance are you looking for, on top of the £5k deposit? Are you on the electoral roll where you live?

Ryy90

skintandscared wrote: »

Okay. Well, for a start are you classified as self employed or employed? What is your annual salary? Current credit commitment (I presume nil if you pay your card off each month)? Have you any missed/late payments? How much finance are you looking for, on top of the £5k deposit? Are you on the electoral roll where you live?

I'm classified as employed, Credit card is paid off each month and not missed any payments on it, looking for around £7,000 over 5 years, annual salary is lower, as I get petrol and other things paid through work, so that works out at around £7,500 per annum which is free to go towards any finance. Oh and i'm on the electoral roll!!

skintandscared_2

Ryy90 wrote: »

I'm classified as employed, Credit card is paid off each month and not missed any payments on it, looking for around £7,000 over 5 years, annual salary is lower, as I get petrol and other things paid through work, so that works out at around £7,500 per annum which is free to go towards any finance. Oh and i'm on the electoral roll!!

It's not a hard and fast rule, but from what I've read on here it's very unlikely to be given any form of finance above 50% of your salary. I would imagine you'd struggle to get more than about £3.5k on financem assuming everything else was perfect. Don't you have expenses such as rent?!

Apples2

skintandscared wrote: »

Don't you have expenses such as rent?!

And do you think your outgoings are going to remain pretty much the same until 2017 ?

bouncydog1

What does the lifetime warranty on your proposed vehicle cover? It certainly won't cover knocks and scrapes which the majority of drivers get, particularly when you haven't been driving for that long. What about servicing, tyres, etc. etc.

It really isn't worth spending a lot of money on a car at this moment in time - what about the insurance? I hope that you're not getting the policy fronted by dad insuring it for you.

You are bound to change your mind over the next couple of years as to what sort of car you really want to drive - do you really want to be saddled with 5 years of debt for an asset that depreciates in value every single time you take it off the drive?

And what happens if you decide on a career change - who is going to pay the running costs then? If you are really determined to saddle yourself with debt and have managed to save £4k, then the first port of call has to be your bank and see what they say. If the answer is no then that gives you a good indicator of what your other options are going to be.

Oh and IMO your dad is bonkers if he agrees to stand as your guarantor for something that is not essential.

angelbob

seriously your 18 and want a brand new £12k car, your a young bloke and are more than likely gonna write it off.
it must be so nice to have daddy give you £5k deposit, my first car was a £190 mini which i saved for and loved.
Do yourself a favour and dont get into debt cos at your age your never get out of it, get a better paid job as £140 a week is basically what you get working in Mc Ds.
Buy a £3k car and spend the rest on insurance cos its gonna cost you.
one day you will have to live in the real world.

KingElvis

Just try and see, I would say very very unlikely on such a puny wage though, that's not much more than an apprenticeship....wait until you earn a bit more?

somethingcorporate

A 12k car when you earn £7k pa - you must be absolutely bonkers.

Have you tried moneywastingexpert.com?

Seriously, I wouldn't buy a car that expensive at your age (hell, I wouldn't now and I earn 7+ times what you do). It's going to depreciate and the finance will be a millstone around your neck long after the car disappears from your life.

Don't let your Dad be a guarantor either as it will just drag him into your financial quagmire.

Sorry if that is blunt - it's the real world I am afriad - just have a poke around some of these boards to see how bad it can get. You will not see a single positive guarantor thread - just dozens of ones where it went horribly wrong and they are desperate to get out of it by any means possible or have been shafted by their nearest and dearest.

malkyh

angelbob wrote: »

seriously your 18 and want a brand new £12k car, your a young bloke and are more than likely gonna write it off.
it must be so nice to have daddy give you £5k deposit, my first car was a £190 mini which i saved for and loved.
Do yourself a favour and dont get into debt cos at your age your never get out of it, get a better paid job as £140 a week is basically what you get working in Mc Ds.
Buy a £3k car and spend the rest on insurance cos its gonna cost you.
one day you will have to live in the real world.

Nowhere did the OP say that his dad gave him the £5k deposit.

If I was the OP, I'd use the £5k to buy a nice but cheap to run second hand car and stay away from getting into 5 years of debt on a car that will depreciate drastically year on year.