Loan for a 19 year old

tonycottee

I bought a car for £6k at 19 and I was earning far less. I loved the car, it was an important lesson in budgeting and I suffered no ill consequences.

I would love to jump on the shocked/disgusted bandwagon, but I just can't.

Edi81

You would be better looking at hire purchase. Negotiate with the dealer and watch out for flat rate interest - ask about the apr. Don!!!8217;t accept anything over 10%.

As other posters have already said how much savings are you putting away, what is your rent? You should be able to save up a good chunk of this in less than a year. What!!!8217;s the rush? You!!!8217;ve got your whole life ahead of you for fancy cars!

System

Remember that £8000 finance over 5 years you get now is going to impact how much money you have to live on if you wish to leave home any time in the next 5 years. It also means that you're effectively "stuck" in your current job because if you leave dole money won't cover it and if you don't pay then the ramifications for that could knacker your life until you're nearing 30 years old.

Pixie5740

duggankieron wrote: »

P.S. Please don't suggest that a 19 year old doesn't need a £8000 car, I know I don't, but I want it.

Then you probably shouldn't post your question on a website dedicated to money saving. Every penny you pay in interest is you stealing from your future self.

Puddylove

Buy a banger or 'shed' as I believe they are called.
It'll be cheap, you won't care if someone hits it with their shopping trolley, or scrapes by on a country road. It won't get stolen. Many 19 year olds have accidents (I wrote off my first car at 17yrs) and you won't mind so much with an old car - but do make sure it's safe.
View it as a test run while you hone your skills and save up for the car of your dreams, not just the £8k one.

DCFC79

Can your parents not help out with some of the money and you top it up with some savings once you have saved some.


If you want it this badly then save up for it.

sourcrates

duggankieron wrote: »

P.S. Please don't suggest that a 19 year old doesn't need a £8000 car, I know I don't, but I want it.

When i was 18, i saw a gorgeous sunshine red Ford Capri 2.0 on a local garage forecourt, it was £1750.


At the time i had a 1977 Lincoln green Ford Fiesta Mk1, which was an old shed, but was the first car i`d bought for cash, about £200 quid if i recall, but i soo wanted that Capri, didn't have the money though, and in 1985 £1750 was a lot of money for an 18 year old on about £50 a week wages.


So i got it on credit, and it was the start of my love affair with cars, but also the start of my life in debt, for the next 30 years, ultimately ending in insolvency more than once.


Now I realise you cannot tar everyone with the same brush, but I look back on that car purchase as the start of all my financial woes, not been able to go out as much as i liked, not been able to go on a trek to the US with my mates, as i had the car to pay for, I know things are different nowadays, but you really do not want to be in that much debt at such a young age.

Rosemary7391

I hear you that you want this car. If you work out how much it will cost you per month - get insurance quotes, loan quotes and work out fuel + an allowance for repairs, you could try saving that amount of money per month for 6 months to a year. Then you'll have a better credit history (so would get better loan quotes) and need to borrow less, plus you'll know how it is to live off that amount of money.



That said - I do wonder how you'd manage to pay rent and bills, insurance and a car loan on £1200. I was on a similar income and I couldn't see how to do it even with buying a car outright from savings. If you're not currently paying rent/bills - you should probably check with whoever is whether they mind subsidising your car or if they're expecting you to save up and move out.

mitch2509

I wish I'd had this advice when I was 18! Listen to these guys they know what they're talking about!

beckysheffield

duggankieron wrote: »

First time poster here, so please bare with me.
I am about to move into a new job and my monthly income would be around £1200.
I am looking to treat myself to a new car. The car I am looking at is around £8000, however because of my small credit history and low credit score (even though I have a Gym membership, a phone contract and among other monthly contracts), however when it comes to applying for a loan, the interest just from around 3% to sometimes up to 22%. Is there any way around the stupidly high interest?

P.S. Please don't suggest that a 19 year old doesn't need a £8000 car, I know I don't, but I want it.

What about leasing? £300pm around about and includes ainsurance