Loan for my dream car at 18!

haras_nosirrah

I am curious where you got your insurance quote. That seems very low for your age and car type.

I am afraid I am going to be one of those annoying adults who is far too sensible but you should take heed.

In my job I help people buy houses. Recently I had a couple who were looking to buy a shared ownership property and had a 15% deposit gifted. However they also had 2 car loans, significant amount of credit card debt and had a baby. The only way we could fit affordability is to get rid of the credit card debt and put down a 5% deposit but because they lived at home the lender said no due to getting into so much debt at a young age and while living at home that they needed to prove themselves for 12 months by living within their means and clearing down the debt before the lender would consider them for a mortgage on the basis that they had run up so much debt while not having much outgoings. It cost them the house. Despite fitting affordability the lender had no faith they wouldn't run up the credit cards again based on previous history.

What I am saying is you get a loan to buy a car, you get a loan to pay the insurance, car goes wrong and you get a loan to repair it (none of it cheap credit due to your credit score) you also want to go out with your friends and go on holiday, go to uni. All fine while you live at home but what about when you want to move out and the debt holds you back?

If you want to get a car and have the funds to do so then by all means do. If having to borrow funds then be under no illusion it may cost you something you want more in the future e.g the ability to move out.

Herzlos

There's a world of difference between track driving and road driving that might be why the black box (and probably the local constabulary).

I'd be very wary of committing to a car like that for 5 years at your age, especially if it's got 125k miles on it already. How far do you drive to work? Are you planning being there long term? Looking to get your own house at some point?

Have you looked into running costs and maintenance?


Personally, being a petrol head I'd be looking to see what you can get for half of that budget at most and save the rest, then when you're at higher NCD and are more financially secure treat yourself to a nicer one. Lots of interesting options out there for the petrol head.

I also don't believe the £1k insurance quote; I was getting much higher quotes and I'm 35 with full NCD.

Herzlos

But since you're going to buy it anyway (and be back here in a year trying to find a way out of it); I'd focus on borrowing less. Can you sell stuff to put towards it? Do overtime at work?

Talk to your bank about a loan; they know the most about you

Dobbibill

joshross306 wrote: »

Thank you for the advice! This site mentions cars as a good debt? Anyway, I appreciate the genuine advice rather than just jumping on the "you can't have that car you're too young" bandwagon same as everyone.

Have a look at this link - play the video from 8mins to 15.5mins for an explanation of good debt vs bad debt.

https://www.moneysavingexpert.com/students/financial-education-video-2014/

You already have a car so don't need it for the example used in Q3 but it gives you an idea of decisions you will need to make later in life.

You don't say how much your income is so we have no idea of affordability to provide tailored replies.

This is a money saving forum and so to suggest you borrow for something you want rather than something you need is not really doing you justice.

Ultimately it's your decision, your previous posts indicate you will do what you want anyway. I wish you all the best but if it goes wrong, learn from it.

tonycottee

If I had nothing better to do and wanted to get a rise out of people, my first stop would be this forum. Any mention of a loan for a car will get a lot of replies and twice as many if you mention you're under 25.
My feeling is, if this was a genuine question, the OP would have mentioned employment.

Herzlos

That said, despite the mileage it looks like a cracking car. Sounds like (and you'd need to confirm) a car enthusiasts company car, 25k miles a year means a lot of motorway time, and it was probably traded in because there's often 5 year age limits.

I mean, you shouldn't buy the car, but it'd likely be a good one if you could afford it

Icarus01

You've come to a forum full of sensible, money-conscious people and you're asking an unsensible question.. the answers don't surprise me much. I was in the same boat once, and while you're young and free it is fun getting nice cars but not if it's going to take most of your monthly packet (maybe). You need to consider things like rent and other living expenses unless you want to stay at home long term. I won't add much else to what's already been said except:


- If you're 18 with little to no credit history, the best you'll get is relatively high interest finance from a "specialist" company, like carloans4u or cars4less


- These will have an age or mileage limit, which is usually less than 100,000 miles and 8 years old. You wouldn't be able to get the BRZ if it's the one with 125,000 miles.


- You'll struggle to sell the car privately with outstanding finance.

And to everyone else who's doubting the £1000 insurance quote: It's probably correct to the point where it's cheaper than his current car. Insurance is considerably cheaper for newer cars that young drivers don't usually have. My first car was a Vauxhall Corsa 1.0 at 17, which cost me roughly £1700 a year to insure. My renewal at 18 was for £1200. I bought a Volvo C70 2.3T instead and that cost me £1000 to insure. That was going from 50 to 240bhp.


Though I don't understand how you think it'll be cheaper outgoings than your Civic? (loan/fuel/tax/insurance as instead of fuel/tax/insurance)