Bank loan at 18?

UndeadKieran

Hello everybody,

I have recently passed my car test, and am looking at getting myself a car. I have looked at a few that are OK, but I want to be a bit more mature about things and get something that isn't clapped out and high mileage; what I am saying is I would like to buy something that is a bit newer, more reliable etc. But that is not the point, I know that I will no doubt get people trying to convince me that I shouldn't go with this route but I am decided already.

I will be 18 in three months and I will have saved £3000 towards the car, but I need an extra £3k to go towards getting the car insuring it etc.

I earn around 5 times more than the repayments required in a month so paying it back is no problem at all.

If I am made redundant I require 1 month's notice from my employer, in which my apprenticeship provider will try and find me a new employer earning at least £140 a week. I would of course also try and find myself a job just in case an employer is not found.

In a worst case scenario, I would sell the car and repay using the money from the sale.

How likely do you think I'd be to be accepted into a bank loan from my bank? (Halifax)

Thanks in advance!

[Deleted User]

Slim, given your age and therefore a blank credit history (once you turn 18). What's your income?

DCFC79

UndeadKieran wrote: »

Hello everybody,

I have recently passed my car test, and am looking at getting myself a car. I have looked at a few that are OK, but I want to be a bit more mature about things and get something that isn't clapped out and high mileage; what I am saying is I would like to buy something that is a bit newer, more reliable etc. But that is not the point, I know that I will no doubt get people trying to convince me that I shouldn't go with this route but I am decided already.

I will be 18 in three months and I will have saved £3000 towards the car, but I need an extra £3k to go towards getting the car insuring it etc.

I earn around 5 times more than the repayments required in a month so paying it back is no problem at all.

If I am made redundant I require 1 month's notice from my employer, in which my apprenticeship provider will try and find me a new employer earning at least £140 a week. I would of course also try and find myself a job just in case an employer is not found.

In a worst case scenario, I would sell the car and repay using the money from the sale.

How likely do you think I'd be to be accepted into a bank loan from my bank? (Halifax)

Thanks in advance!

Nothing wrong with cars with high mileage, theres posters on here who actually buy a car thats so old, use it for a year, sell it and buy another and repeat the process.

You can get cars that have been well looked after eg 1 owner that are still capable of running for a good number of years.

Do you really need a car when you turn 18 ?

Have you seen a car ? Otherwise how do you know how much insurance would be ?

BMN

Since you're not 18 yet you won't have a full current account and therefore you won't be offered any credit facilities until you can and do upgrade to one.

UndeadKieran wrote: »

I earn around 5 times more than the repayments required in a month so paying it back is no problem at all.

You don't know what the monthly repayments will be.

Clive_Woody

UndeadKieran wrote: »

Hello everybody,

I have recently passed my car test, and am looking at getting myself a car. I have looked at a few that are OK, but I want to be a bit more mature about things and get something that isn't clapped out and high mileage; what I am saying is I would like to buy something that is a bit newer, more reliable etc. But that is not the point, I know that I will no doubt get people trying to convince me that I shouldn't go with this route but I am decided already.

I will be 18 in three months and I will have saved £3000 towards the car, but I need an extra £3k to go towards getting the car insuring it etc.

I earn around 5 times more than the repayments required in a month so paying it back is no problem at all.

If I am made redundant I require 1 month's notice from my employer, in which my apprenticeship provider will try and find me a new employer earning at least £140 a week. I would of course also try and find myself a job just in case an employer is not found.

In a worst case scenario, I would sell the car and repay using the money from the sale.

How likely do you think I'd be to be accepted into a bank loan from my bank? (Halifax)

Thanks in advance!

Not wishing to state the obvious but insurance will come up every year and will remain high until you have a few years no-claims. Borrowing money for insurance is not a good idea.

As already stated, with no previous credit history, so effectively a blank credit file, I think the chances of anyone lending you £3000 is very unlikely.

Best you do is save up and not get into debt.

Tixy

Is it £3k for the car and £3k for insurance that you expect to spend?

You may stand a better chance of looking for insurance quotes that allow you to pay in installments through the year. That would make more sense anyway, as you won't be repaying it over more than a year (paying for it over a year obviously isn't suitable for an annual cost).

DCFC79

Tixy wrote: »

Is it £3k for the car and £3k for insurance that you expect to spend?

I read it as though he wants to borrow the £3k so he has £6k to buy a car plus cover his first years insurance.

[Deleted User]

£60 a week for insurance,probably £60 a week for repayments,£20 a week for petrol,£20a week for repairs/running cost
youd be better off getting taxis everywhere,better still using the bus

John1993_2

woodbine wrote: »

£60 a week for insurance,probably £60 a week for repayments,£20 a week for petrol,£20a week for repairs/running cost
youd be better off getting taxis everywhere,better still using the bus

While that's true, we all need to start building up a no-claims bonus at some point, and doing it at 18 years old, before other commitments come along, is not a terrible idea.

OP, I'd recommend that the "mature" thing to do is to buy a cheap low-prestige (but well maintained) car, in a low insurance group, for the moment. Try to do it all without borrowing if you can, and then save as hard as you can towards getting something that you prefer in a year or so's time.

You are going to struggle to get a loan, and it's not really the best route for you even if you could get one.

dotdash79

You can get a decent car for about £1000 have £1000 for your insurance and have some left over in case of repairs emergency.

Cycrow

the mature thing to do would be to not get into debt at 18