Getting a loan.........at 18

azndrifter318

azndrifter318

767
I'm a little new to all this so please bear with my ignorance. I'm wanting to buy a used car through an individual and plan on probably wanting to find a loan for at most $3000. The problem i keep getting is most loan sites i've been going to require a minimum of around $5-$9,000-ish. And another problem is i'm 18. I might be able to get my parent's to co-sign but if i could go it on my own, i'd like that more. Any alternatives, such as getting a personal loan? Help!

thanks in advance.
 
The best way I can think of is for you to get the loan from your parents, and your parents get the loan from their bank. I think the second best way is you getting the auto loan from your bank/credit union with your parents as the cosigner.
 
I had loans at 18, but they were for college tuition. I'm sure you're not going to have an easy time getting a used car loan at your age - especially not one with a good rate. It would help if you had a regular income that was well above the necessary payments.
 
Might be worth looking for a deal to get a car on finance, you'll pay interest but you would with a loan. Basically you pay for the car monthly, like £200 each month for however many months.
 
azndrifter318
I'm a little new to all this so please bear with my ignorance. I'm wanting to buy a used car through an individual and plan on probably wanting to find a loan for at most $3000. The problem i keep getting is most loan sites i've been going to require a minimum of around $5-$9,000-ish. And another problem is i'm 18. I might be able to get my parent's to co-sign but if i could go it on my own, i'd like that more. Any alternatives, such as getting a personal loan? Help!

thanks in advance.
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Go to a bank in person (with a co-signer just in case) to take out a personal loan and then buy the car with the cash.
 
If you screw up a loan or get a loan you can't manage, then your not bright. If you know exactley what you can manage and cover your bases, a loan can be very useful. How the hell would you buy a house without borrowing money unless your rich. I still owe about 40 grand for my house, the mortgage was for 150 grand and I paid the rest up front. Without that there was no way I'd have a house for me and Charlotte to live in, or a flat for that matter, round here they cost upwards of 100k for a tiny flat.
 
I got a £5000 loan when i was 18 - didnt have to get my parents to sign anything! i got it from my bank - i could have got anything from £1000 + but i got £5k as i had to pay £1700 to go to my brothers wedding in Mauritius - i bought another car as i had a Renault Clio which was as reliable as a chocolate spanner! I pay back £152 per month for 4 years!

DO NOT GET YOUR LOAN INSURANCE PROTECTED

I did this and i pay back a further £1000 on top of the Interest and it is a con. I read in the newspaper that all it helps is the bank get their money if you become redundant or anything - and you still owe them the money!!

So im going to enquire about cancelling the Insurance cover - Anyone know if i am illegable to do so?

Do not get car finance its a rip-off!
 
Finance depends on the offer. You can get offers where you pay so much up front and you pay the rest monthly. I'm doing that when I buy my next car, provided the 306 I have doesn't die beforehand. I'll pay no more than 3k ontop of the cars showroom price, and for a 50k car thats not bad, it's better than what any loan will get me. If you want to payas little as possible, then the best way to go depends on the ammount your after and how fast you can pay it back. I wouldn't do one of these long period finance deals, they take a lot of cash. The other side to it all depends on your credit history, if you have good credit you can get a good load, if not your looking at paying almost double what you borrow as interest, sometimes more where most finance deals are fixed. Mine was negotiated, but I haven't put a deposit down for that car or the deal yet, and they're aware it could be upto 10 months before I take it.
 
azndrifter318
I'm a little new to all this so please bear with my ignorance. I'm wanting to buy a used car through an individual and plan on probably wanting to find a loan for at most $3000. The problem i keep getting is most loan sites i've been going to require a minimum of around $5-$9,000-ish. And another problem is i'm 18. I might be able to get my parent's to co-sign but if i could go it on my own, i'd like that more. Any alternatives, such as getting a personal loan? Help!

thanks in advance.
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Whilst you're to be admired for wanting to do it alone, you will find that the best rates are to be had by getting your parents to take out the loan. Then they can secure the loan against their house, which will make it MUCH cheaper than taking out an unsecured loan (which a loan for a car would be). The downside to this is that obviously if you defaulted on the loan (didn't pay it off), your parents would lose their house... If they didn't bail you out, that is.

If you can secure the loan (i.e. put up something of high value as collateral) then the interest rate will be reduced because the loan carries a lower risk to the bank. You can't get a fully secured loan on a car because a car is a depreciating asset.

barryl85: Yes, you should be able to cancel the Payment Protection Insurance.
 
azndrifter318
The problem i keep getting is most loan sites i've been going to require a minimum of around $5-$9,000-ish.
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Make sure you don't have an early payment penalty on your loan. You hardly see thsi anymore. Wait a few months while keeping the excess money in savings or somewhere that you won'ttouch it but it can benefit you while it sits. After a few months take the excess money and make a huge lump payment. It is very rare that anyone offering a loan won't allow you to pay extra on payments.

You could also do a little extra every month until you have given back the extra but this will cost you in interest.

If you go this route you should not use the extra money for anything! If you touch it you had better be paying it back to the bank.
 
GilesGuthrie
barryl85: Yes, you should be able to cancel the Payment Protection Insurance.
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Thanks, i didnt want to go in2 the bank looking like an idiot if i couldnt!!! that should reduce my monthly outgoings!!
 
barryl85
Thanks, i didnt want to go in2 the bank looking like an idiot if i couldnt!!! that should reduce my monthly outgoings!!
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They won't like it when you try to cancel it (because they themselves know what a moneyspinner it is), but I doubt there is a legal requirement for you to have it.
 

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