Car loan for an 18 year old

Mr.Generous

I love all the assumptions, the car could be £12k and she has saved £4k, it could be £15k and she's saved £7k we don't know. It could easily be that insurance is lower premium on a more expensive car. insurance is all about statistics, if 18yr olds have lower claims when they fork out a lot of cash for the car then the premiums will be lower. The insurance over 3 years could be more than £8k depending on all the usual factors. The advice wanted was about getting the loan not about anything else. I'd suggest she apply for a credit card and start using it, pay off in full every month and build up some credit history. Personally wouldn't want an 18yr old family member to go down this route but we don't know the circumstances.

Nimmi

I would recommend getting a starter car around £1-3k max. If she wants to upgrade then she can in her own time, personally I think 19 is a bit young to buy an £8k car, unless the funds are already in place and within her means. I wouldnt want to have an £8k loan over my head at that age for a car. One of my friends at 19/20 took out a loan for her car for a similar amount and she was earning a similar salary and she was getting fed up of the repayments after the first year and the lack of money she was left with each month after bills, payments, petrol, socialising, etc and she was living at home too.

My first car at 18 was a £3k Ford KA, it did the job and it was fun at that age and I considered it to be very expensive for a first car. I upgraded to a more expensive car spending £8k on it at 21 and looking back I would rather have kept the money in my savings and kept the pot growing towards something that doesnt depreciate.

DCFC79

Alex77789 wrote: »

It's very hard

Whats very hard ?

lovinituk

Alex77789 wrote: »

It's very hard

DCFC79 wrote: »

Whats very hard ?

They are another overseas spammer building post count. Most likely India if my experience on another forum is anything to go by.

DCFC79

lovinituk wrote: »

They are another overseas spammer building post count. Most likely India if my experience on another forum is anything to go by.

Yes Im aware of that lol

adamjames0690

Hi,

I think everyone has pretty much covered it in their answers, however, as an underwriter in a previous life my advice would be that your friend slowly builds up her credit file. £8,000 is a significant debt considering their age and limited credit history. There are many ways in which you can build up your credit file and in the future, lenders may look more favourably upon their application.

In my experience, my first car was a Citroen AX and cost me £500. It was mint green, aka nick name was tic-tac. However, it was cheap to run and insurance was relatively cheap considering that I had virtually no driving experience, other than driving a moped for a year.

I saved up for several years and when I turned 25 I purchased a reasonably new car with some help from finance. As I'm slightly older and had 8 years driving with no insurance claim, my insurance was relatively cheap. It's sometimes best to wait, however everyone is different.

Hopefully your friend will decide what's best for them.

Best of luck either way.

fresvinog

I think it's more about the amount she was requesting for rather than her age since she doesn't have any credit history yet