Car loan for an 18 year old

lee111s

5? No wonder it was so expensive

markfj

I was around 19 when I spent 8k on my 2nd car (my first car was an old Nissan micra) , so my opinion is it isn't too young, if you drive it properly and want a car to last for a long time.

I could have got a bank loan for that amount, but was now 10 years ago and memory was %27.5 apr so I didn't opt for that

My mum very kindly, offered to get a loan out in her name for the first 2 years and I could pay her back via standing order each month which I did, I then took the loan over in my name after that and built up my credit rating that way, as I had none also

That maybe an option if you trust she can afford to pay you back each month at least

Larry123

Speaking as a 27 year old who was earning good cash from the age of 16, don't spend £8000 on a car at 19. Circumstances can rapidly change at such a young age, not only career wise, but also personal goals, way of thinking etc. I thought I knew what I wanted and got a mortgage at 18 and spent about the same on a car. I then had a breakdown because I had taken on too much and locked myself into a difficult situation. While my friends were going off traveling, socialising etc, I was locked down to repayments. I wanted to become a different person but couldn't due to upside down finance and a mortgage to pay.

Just get a cheap car and enjoy being young. Find yourself, know what you want out of life and then you will know whether you need to buy an 8 grand car.

Hope this helps.

markfj

Larry123, good post

It really depends on people and their views
I bought a new car at 19 and had a mortgage at 20, and was paying almost my wage out, 10years later I still have my car and now 2 mortgages... I'm glad I did what I did, personally, maybe she would be the same?

CLAPTON

markfj wrote: »

Larry123, good post

It really depends on people and their views
I bought a new car at 19 and had a mortgage at 20, and was paying almost my wage out, 10years later I still have my car and now 2 mortgages... I'm glad I did what I did, personally, maybe she would be the same?

would you say that was normal?

markfj

CLAPTON wrote: »

would you say that was normal?

Maybe not, depends on what you call "normal" it was hard, for a while but benefitted me now.. depends how you like to live life

silverwhistle

Times have obviously changed, and we are better off, but as a graduate with a graduate job back in the 70s/80s I didn't get a car until I was 28 and that was a £100 banger (think a thousand now, except these days you'll have a radio and aircon!). :-) I bought a 3 bed house the same year... Now circumstances are different, but it's a big commitment, and employment isn't the same now. I stayed with the same company for 25 years, but what happens if the lass loses her job?

As a late starter driving ( I had a MB for a few years before) I'm still aware of the attractions of being mobile, although I don't think early starters always appreciate it. But I'm also aware that it's the mobility, not the shinyness of the car that's important. Save up for 6 months and buy something outright..

Ebe_Scrooge

National_Debtline wrote: »

At that age I would have been looking at cars that I could "afford" to write off, if that makes sense.

Couldn't agree more. With the best will in the world, an inexperienced driver is quite likely to damage the car. Even if nothing major, scraping against walls, fences etc. whilst maneuvering, the odd ding here and there - on a sub-£1000 banger you aren't going to be too worried, and can patch it up yourself. On an £8000 car you're going to want to pay for a professional repair, or else suffer the large loss in resale value.


I'm not saying she will prang it - I sincerely hope she doesn't - but it's a not-unlikely scenario.

catwoman73

What does this 18 YO have in savings? She has brought in around £15000 in the time she has been working and lives at home with her parents - if she can afford the loan repayments she should already have quite a bit saved up - if not, can she afford a loan and insurance and repairs/servicing and maintenance to spend such a lot on a first car?

mumps

lee111s wrote: »

5? No wonder it was so expensive

Lol 5 years older than the young person in this thread i.e. 23 years old.