Why is my daughter unable to get a car loan?

DCFC79

Just a thought but maybe she should go through the motions of having a loan and save x amount a month to repay the " loan ", do you see what I mean ?

Ok so she spends x amount on clothes, nights out, car running costs etc but would she have enough to pay the monthly payments for a loan ?

somethingcorporate

Where does the £600 a month currently unaccounted for go to?

A couple of months savings and she could buy a banger outright an inexperienced 20 year old should be driving

SuperHan

Again, a credit card is not the way to go.

I'm 24, I've had a number (I think 3, maybe 4 in total) credit cards since I was 18 - all used regularly and paid in full every month - a few fully paid finance agreements, I take home £1200 a month after tax and have a mortgage... However, the biggest credit card limit I can get to date is £1,900, and I like to think I have a good and well used credit history.

Her friends may have taken better care in the past in having and paying credit cards which would improve their credit position.

They also may have car finance agreements, which are usually easier to come by given that they are secured on the car, as opposed to a separate loan for the car which has no security.

p00hsticks

ginsoakedgirl wrote: »

As far as I am aware she has only been saving for 5 or 6 months, and she has been honest with me about her finances, although she does not accrue the surplus income each month and does spend a good portion of her income each month on clothes, nights out, car running costs etc. She always has money left by the time pay day comes around again however - although I don't know how much!

It sounds to me like her outgoings are considerably more than £200 a month - just because it's a luxury rather than a necessity doesn't mean you can ignore it.

Jakg

DebtFree14 wrote: »

make [...] her email address combines both her first name and surname i.e jane_smith@hotmail.co.uk

Do you have a source for this?

CKhalvashi

Take a look on the bangernomics thread, as there are generally a couple of older, usable, road legal cars there, for well under £1000 each.

norsefox

SuperHan wrote: »

Again, a credit card is not the way to go.

I'm 24, I've had a number (I think 3, maybe 4 in total) credit cards since I was 18 - all used regularly and paid in full every month - a few fully paid finance agreements, I take home £1200 a month after tax and have a mortgage... However, the biggest credit card limit I can get to date is £1,900, and I like to think I have a good and well used credit history.

Her friends may have taken better care in the past in having and paying credit cards which would improve their credit position.

They also may have car finance agreements, which are usually easier to come by given that they are secured on the car, as opposed to a separate loan for the car which has no security.

I'm 25 and on every so slightly more than you are with a CC with a limit of £3750.

However, this was only after being rejected for a Debenhams store card and a Post Office CC in December 2012. I then changed banks to Nationwide and was able to get a CC with an initial limit of £1500 - once I had been paying my salary in for 6 months they then offered me the higher limit at the lowest APR they offer.

I'm still baffled by the first rejections, but possibly due to not long on current electoral register and fairly recent change of address.

huskypup

Following on from this thread - this is not a happy house infact a very angry house - my daughter yesterday walked into a ford garage - and walked away with a brand new ford KA - ok now the bit that that has made my husband and I fuming at her and at the garage (though they have not done anything wrong - not sure how they have done it but hey ho)

1. It is going to cost her £164 a month
2. She still has two months to go at uni
3. She has no job
4. She has not had to supply pay slips
5. She has not had to supply bank statements
6. She has a £2500 student overdraft to pay off

We are fuming that she has managed to do this - her old car which cost us £500 failed its MOT last week and was going to cost £600 to repair - but rather than wait until this weekend to go look for a little run around - she does this

How has she managed to get credit for this amount - its on one of these option schemes where you pay each month then supposingly you can just hand the car back at the three year point - it cant be that simple.

Any suggestions on how she has managed to do this - she says she was honest and told the sales man that she wasnt working - she works part time and has been verbally promised some hours once uni has finished - I actually give up.

greenorange

I'm going to be the 'grumpy' one with my post on this thread.

ginsoakedgirl wrote: »

Hi

My daughter is 20yo and has been working full time since leaving school. Her monthly income after tax is over £900 and her regular outgoing amount to around £200. She has her phone bill and car insurance coming out of her account by direct debit.

She has been unsuccessful in obtaining a loan or even a credit card in order to purchase a newer car.

She has friends who are the same age with virtually identical incomes and personal circumstances who have been able to obtain credit cards, but she has been refused - she initially applied for a loan and then a credit card, and then went to the bank where her salary is paid, and all to no avail.

She has never defaulted on her phone or insurance payments.

She called the money advice service but they couldn't help her.

Any ideas anyone?

Many thanks!

Instead of helping your daughter into a life of debt, why not advise and teach her how to be smart with money. Instead of supporting her to get a loan or credit card for a car, advise her to buy an old banger, save money each month, and eventually buy her new car for cash.

Who cares if her friends have a Platinum American Distress or Mastercard. Teach her to live within her means and buy things for cash rather than credit. It'll set her up for a much happier, smarter future.

huskypup wrote: »

Following on from this thread - this is not a happy house infact a very angry house - my daughter yesterday walked into a ford garage - and walked away with a brand new ford KA - ok now the bit that that has made my husband and I fuming at her and at the garage (though they have not done anything wrong - not sure how they have done it but hey ho)

1. It is going to cost her £164 a month
2. She still has two months to go at uni
3. She has no job
4. She has not had to supply pay slips
5. She has not had to supply bank statements
6. She has a £2500 student overdraft to pay off

We are fuming that she has managed to do this - her old car which cost us £500 failed its MOT last week and was going to cost £600 to repair - but rather than wait until this weekend to go look for a little run around - she does this

How has she managed to get credit for this amount - its on one of these option schemes where you pay each month then supposingly you can just hand the car back at the three year point - it cant be that simple.

Any suggestions on how she has managed to do this - she says she was honest and told the sales man that she wasnt working - she works part time and has been verbally promised some hours once uni has finished - I actually give up.

While your daughter hasn't listened to you, kudos for being smart and advising to get a little run around, and not getting in debt for a car. Unfortunately your daughter may have to learn the hard way (like I am).
_____

I'm 24, and have been stupid with credit in the past, running up debt as a student, buying things on credit I couldn't really afford, and am paying the consequences now. My parents were all for using credit cards and loans, and I thought it was the norm.

Now I'm trying to get myself out of debt. When I have kids, I'll do everything I can to put them off credit, and teach them to save and use cash. It doesn't matter if your friends are driving around in brand new cars, own the latest phone, have the best laptop, all on finance. What matters is that you're not giving a large chunk of your salary each month to banks or finance companies.

Gaz83

huskypup wrote: »

Following on from this thread - this is not a happy house infact a very angry house - my daughter yesterday walked into a ford garage - and walked away with a brand new ford KA - ok now the bit that that has made my husband and I fuming at her and at the garage (though they have not done anything wrong - not sure how they have done it but hey ho)

1. It is going to cost her £164 a month
2. She still has two months to go at uni
3. She has no job
4. She has not had to supply pay slips
5. She has not had to supply bank statements
6. She has a £2500 student overdraft to pay off

We are fuming that she has managed to do this - her old car which cost us £500 failed its MOT last week and was going to cost £600 to repair - but rather than wait until this weekend to go look for a little run around - she does this

How has she managed to get credit for this amount - its on one of these option schemes where you pay each month then supposingly you can just hand the car back at the three year point - it cant be that simple.

Any suggestions on how she has managed to do this - she says she was honest and told the sales man that she wasnt working - she works part time and has been verbally promised some hours once uni has finished - I actually give up.

Presumably she has a copy of her credit agreement, or some paperwork of some kind? How much is the Ka worth?