Car loan - no credit history

edrob_2

My daughter is aged 20. She lives with us. She has recently started two part time jobs earning around £8k per annum total. We live in a rural area so she really needs a car.
She has virtually no credit history - just a debenhams credit card which she paid off and cancelled after the first month. She has a bank account with positive balance.
So - not a good risk for lenders. Not a bad credit history - just a lack of anything really and obviously low income and recent changes to employers

Been in touch with zuto who have agreed to lend in principle.
Any ideas on -
Are zuto the right people to go to?
Not clear from their site if they are offering hp or loan.
Anywhere else we should try?
Any ideas on what the interest is likely to be?
Is the loan secured on the car with zuto/
Is finance through the dealer likely to be better/ cheaper/ more or less likely to be succesful application?

[Deleted User]

How much does she have in the bank? Enough for a run around?

With no credit history and very small income, she'll be hard pushed to find a loan that doesn't charge very high interest. Not to mention the issue of paying back.

edrob_2

Deleted_User wrote: »

How much does she have in the bank? Enough for a run around?

With no credit history and very small income, she'll be hard pushed to find a loan that doesn't charge very high interest. Not to mention the issue of paying back.

No not enough for a run around. Plus we need something that will be reliable - not requiring dad to have to keep running out to sort the problem!

DCFC79

Her own bank might be a starting point.
As for what the Apr might we have no idea, it depends what risk lenders see her to be.

Car finance is said to be more likely to be accepted but I don't know what criteria from the lenders point of view needs to be fulfilled to get accepted.

What amount each month could she have to use to pay the loan/finance off ?

Could bank of mum & dad help her out ?

With regards used cars do you know anyone who knows about cars who could go with you to give the cars a look over eg under the bonnet etc ?

Clive_Woody

edrob wrote: »

Been in touch with zuto who have agreed to lend in principle.
Any ideas on -
Are zuto the right people to go to?
Not clear from their site if they are offering hp or loan.

Looking briefly at their website it seems they are a broker not a lender so an agreement in principle to lend is nonsense, unless they have already passed your details on to whichever lenders they use.

Please don't provide them with any card or payment details.

HP or loan may well depend on who they pass your details on to, but I assume whoever it is they will charge a large APR. I didn't see anything on their website about interest rates.

How much is your daughter hoping to borrow?

[Deleted User]

What about insurance? Maintenance? Fuel? Less than £700 a month income doesn't go far if you have a loan to pay too (which will be a minimum of £200 a month).