Car loan for an 18 year old

rorysdad

Hi

Is an 18 year old who has been in work for just under 1 year - full-time, net monthly earnings around £1,300 likely to be able to get a loan for £8,000 to buy a new car?

Is the age against her - or the amount she is asking for as against the earnings?

Also, she has no credit history - nothing on finance, not even a mobile contract.

She lives at home with parents.

Her own ank rejected the application.

Anyone know where we can try - prefer a loan to HP.

RD

Gaz83

rorysdad wrote: »

Hi

Is an 18 year old who has been in work for just under 1 year - full-time, net monthly earnings around £1,300 likely to be able to get a loan for £8,000 to buy a new car?

Is the age against her - or the amount she is asking for as against the earnings?

Also, she has no credit history - nothing on finance, not even a mobile contract.

She lives at home with parents.

Her own ank rejected the application.

Anyone know where we can try - prefer a loan to HP.

RD

Amount is against her. £8,000 must be near enough half her gross annual income.

Age isn't against her per se, but as a young person she won't have much credit history and no record of repaying credit.

If her own bank are against her borrowing then chances are she won't get a loan anywhere else. Not without extortionate APRs.

What savings does she have?

lee111s

Very unlikely to get a loan with zero credit history. What sensible lender is going to lend to someone who has no evidence that they can make the payments. If her own bank rejected the application, that pretty much tells you that no one else will accept it (well perhaps, but the interest rate will be eye watering).


Why does someone aged 18 need to spend more than half of their annual take home wage on their first car? There's some great cars around for £1500 which would be more suited for a first car.

CLAPTON

rorysdad wrote: »

Hi

Is an 18 year old who has been in work for just under 1 year - full-time, net monthly earnings around £1,300 likely to be able to get a loan for £8,000 to buy a new car?

Is the age against her - or the amount she is asking for as against the earnings?

Also, she has no credit history - nothing on finance, not even a mobile contract.

She lives at home with parents.

Her own ank rejected the application.

Anyone know where we can try - prefer a loan to HP.

RD

if she is living at home with 1,300 a month why hasn't she saved 8k by now?

she should buy something around 2-3k : plenty of good stuff there.
has she checked out how much insurance will cost her?

SeanG79

The fact that she has no credit history will mean that if her bank wont assist, it is unlikely anyone else will.

I would suggest getting a credit card for starters, to build up a profile.

£8k car for an 18 year old sounds excessive, has she checked what the insurance would be on the vehicle?

DCFC79

Use savings, must have some stashed away.

Imo £8k is too high for a first car, there's loads of motors out there for half of that that are perfectly fine to be driven.

[Deleted User]

Look at the problem from a different angle, £8000 car + probably interest of £2000 = £10k add to that insurance over 3 years of £6000 total 3 year cost excluding petrol servicing etc = £16,000 or £5300.

Using buses and where needed odd taxi £50 a week maximum x 3years £7.5 k over 3 years £16k- £7.5k = £8.5 k enough in 3 years to buy a decent car for cash!

Gconway

being 18 wouldn't buying a much cheaper car (£1000 say) and running that for a year or so be better, just incase she has any accidents, gives her chance to take out a credit building card and can pay for petrol on it, and gain a years no claims possibly?

margaretclare

2 stumbling-blocks:

1. the large amount and

2. the lack of any credit history.

Is it essential for her to have a new car? Many of us, at that age, went for a good second-hand.

National_Debtline

Hi rorysdad


As a couple of others have implied above, the insurance premiums are likely to be prohibitive for a car of that value, let alone the lending criteria. At that age I would have been looking at cars that I could "afford" to write off, if that makes sense.


Dennis
@natdebtline

mumps

Couldn't agree more about the insurance. One of my kids learned to drive last year and got their first car it cost £1,700 to insure it 3rd party. They were 5 years old so it would likely be worse for someone of 18. Heaven only knows what fully comp would have cost.