$10,000 loan for an 18 year old??

[DoubleK]

im not commenting.. just telling you my experience!

i got a $10,000 loan when i was 18, i bought a car and was paying off $195 a fortnight (i had been at my full time job 3 months...)

then when i turned 20, i went back to the same back and got a $20,000 loan (which paid out the remainder of the first loan, then left me with $13,000) i bought a new car, i was ready to sell the old car.. when i had an accident (3 days after buying the new car) and had no insurance, and had my old car still.. plus $20,000 to pay off.

ouch

in the end, the accident was deemed my fault (i still dont agree - but we went to court and all over it) and they wanted me to pay $12,000 for the other cars costs... by this time i was pregnant with Krystal and not working. my only option was bankruptcy..


please ensure she gets insurance on her car!!!! (i wish i had, i was planning to, i had all the quotes, just had to pick one!)

anyways, thats just my story. i hope your sdd doesnt go down my path!

[kungfubecca]

I work in lending and am shocked that someone without a good savings history was able to get a loan. at that age we would require evidence of savings 12 months continuous employment, 20% deposit towards the purchase price of the vehicle.

What I would suggest, is that if nothing else get her to do some research about the cost of insurance before she gets her car. if it is a loan secured by the vehicle they will most likely require her to have full comprehensive cover. Which is either near impossible for an 18 year old with a V6 or very very expensive, and I'm talking over $1000 per year!! to protect her also insist that either the bank or she privatley checks with Vic Roads to make sure the car isn't stolen.

Before siging anything she should ask them if there are any penalties for paying the loan out early.

There is also loan protection insurance and while it can increas how much you have to pay back, it can also cover you for involuntary unemployment (redundancy) and dissability (unable to work due to injury).

If she doesn't have the car yet, she probably hasn't signed any contracts. Ask her if you can go with her when she signs the contracts, she might not let you but it's worth a try and at least then you could check up on the bank or finance company that is giving her the funds.

I really hope it's not one of those companies either I think places like motor finnce wizzard are evil!!