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

  1. #37

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    Lets hope she does not have to learn the hard way on this one. I know when I got my first car loan I had to get full comprehensive and was advised to get loan insurance, which I thankfully did take up as I was made redundant about 6 months later.


  2. #38

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    Oh dear Lulu...

    I just hope her VT stays quite nice otherwise she'll really wish she had forked out the money for the insurance. I'm surprised that the bank didn't stipulate insurance conditions.

  3. #39

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    That's what gets me - I would have thought the bank would have made her get fully comp!

    And it just gets worse. I said to her then it might be worth paying the fully comp ins all at once with the rest of the 10k, and she hasn't paid the transfer fee yet (about $300), I noticed the rego expires in APRIL.....

    I'm going to send her a budget and hope she sticks to it.

  4. #40

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    she is going to find it very expensive to keep that car on the road, what is the fuel economy like? how many L does she get per 100kms?

    With our 6 cyl (ok it *was* a turbo - FPV) it was costing us about $90 to fill the tank, with Angel (she is a V8) it is costing about $90-$100 to fill her, punkin (my turbo mazda 2) takes about $40-$50 to fill. On a weekend of cruising we can go through a full tank or two on Angel & the FPV when we had her.

    If she was in Qld - she wouldn't be allowed a 6 cyl - it is too powerful for a P plated driver (which most kids are now from the age of 18-19 til 22-23). Heck I can't even sell my 4 cyl to a P plater because it is has a turbo in it!

    She is going to end up driving all her friends around everywhere and they won't give her any money for the petrol. I know because this happened to me when I got my first car (Mini), until I put my foot down and basically wouldn't take anybody anywhere unless the put in money and if we went out they bought me soft-drinks all night!

  5. #41
    DoubleK Guest

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    i remeber trying to explain to my dad when i got my loan.. it was a personal loan, therefore the bank never said anything about needing full comp insurance etc because for all they knew, i was spending the money on something else...

    oh how i wish id not waited 4 days to organise insurance... i always wonder where my life would be if i had the insurance... it might sound silly, but i dont think id be where i am today if i had gotten damn insurance!! (which isnt a bad thing...)

  6. #42

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    Fully comp is expensive, but sooo worth it, IMO.
    I had a 15 y.o old corolla as my first car when I was 17. I bought the car (in absolutely immaculate condition) outright for like $1500, but I still got full comprehensive insurance on it (in my mums name with me listed as a driver, so it was cheaper). Just as well too, because the car got stolen and completely trashed beyond repair by the kids who stole it... Like alot of 18 year olds she probably thinks she's indestructable and it'll all be fine... and she probably will be fine, but anything can happen.

    Good on you for doing up a budget for her. Hopefully she will listen to your advice and try to stick to the budget.

  7. #43

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    Oh goodness, I don't suppose it's going to help your cause to tell her all the stories of teenagers driving cars not fully insured who have crashed them within a relatively short period of time??? And I'm guessing one of the reasons ins for a VT is high is that they are favoured by car thieves...

  8. #44

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    I got a $10K loan at age 18. Was the only way for me to get a car. I worked casual but paid it off. I guess it depends how responsible your SDD is.

    Yeh the only thing about wanting a flash car is she may not get anyone to insure it at her age and driving experience or it might cost heaps and i think if she has a car loan its part of the contract that she has to have comprehensive insurance.
    I remember my brother bought a V8 SS commondore and had problems getting insurance as he was under 25 at the time.

  9. #45

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    Thing is Kel, the bank required sweet f all.

    Anyway, I drew up a budget and worked out it is going to cost her $200 per week to run. Then she has rent etc, blah, blah, blah.

    It looked Ok until dp tells me she only earns between $250-350 per week.

    I sent it on and when she was asked if she had a chance to look at it, and she -ahem- "hasn't had the time".

    Did I mention she lives 2 hrs from the city along one of the most notorious streches of road??

    At the end of the day, it's up to her. I tell you what, if she had the chance to look at the budget BEFORE she spent that much I am certain she would have spent half that amount.

  10. #46

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    Default jess

    it is so stupid when i was 18 i got a 7,000 credit card an so did my partner who was 21 i didnt work an he got realy crap pay we maxed them out then went an got a loan for a car then had to up grade our car an they gave us another loan we are now 30,000 in debt i dont no how they can give younge people loans when they cant pay them back

  11. #47

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    If they gave her the $10K before she bought the car then its probably a personal loan, rather than a car loan and the interest rate will be higher.
    It wont make too much of a difference, but if someone/institution will refinance her to a car loan her interest rate could decrease by as much as 2 or 3%, it depends though whether she meets their lending criteria (I'm with you I cant believe the way banks are handing out money these days)

  12. #48

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    I remember my first car I got when i was 17 - it cost $850. it lasted me four years. It was replaced with a car that was worth $2,500.

    I know a couple of people who have gone out and bought cars when they were in their late teens and early 20s. one had his car stolen (with no insurance) and ended up with $18,000 debt for nothing, the other had an argument with his mum about taking out a loan for $15,000 for his car, and now 5 years down the track, he realized she was right (he should have bought some land and a house).

    Cars just aren't worth the money - they are merely liabilities. Your SDD is going to have to figure that out the hard way. just don't be tempted to bail her out when the poop hits the fan, otherwise she will never learn.

  13. #49
    paradise lost Guest

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    Ah this takes me back...

    My brother was a boyracer who bought an Astra SR at 18 (paid in installments as he bought it from a friend) that never made it out of the drive because by the time he had spare cash to fix it it was about 1000GBP away from passing an MOT (it had cost him 1200GBP). Then he went to college for 3 months so he could get a student loan and bought an Astra SRi which cost 2000GBP and ran for about a year before catastrophically failing and having to be scrapped. Then an RS Turbo with another loan, which lasted a few years. Then he sold the RSTurbo and bought a SierraTD estate which was his first "sensible" car. Went like poop off a spade but room for the dog in the back. It cost him 6000GBP (another loan, which he'd used to consolidate the first 3 loans and get the car), and 2 months after he bought it he crashed it through a hedge (cornering at 70mph) and twisted the chassis. He was 3rd part fire and theft insured and basically had to remove the plates, grind the serial numbers off and leave it where it was because he couldn't even afford to have the scrap man come pick it up. He then drive around in an Astra SwingD (incredibly sedate) for 5 years while he paid the final for-nothing loan off. He was about 28 before he learned his lesson and 30 before all the loans were paid up.

    I don't have a car. LOL.

    Bx

  14. #50

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    I got offered a credit card at 18 with 1k limit with no income :-). I owned two cars by the time I was 19 paid in full and now have a mortgage with DP we own everything in the house, we own both our cars and have all our bills in credit from good budgeting.

  15. #51

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    Unfortunately I have no advice... But I wouldnt let her spend the money and either cancel the loan or pay it back with the money borrowed.....

    Truth is.. I was 18... got approved for 10K personal loan.....

    Crashed the car a year later - lost my job (not saying this will happen to your daughter of course.. this is just my story)

    I had to go bankrupt as I couldnt pay for the loan and I had physio etc to pay for too

    I REGRET GETTING THE LOAN

    I am sorry your going through this situation and hoping it doesnt come back to bite her in the bum....

    xox wishing you all the best

  16. #52

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    I've only just seen this and am a bit $h!ted off - I'm 23, can get a joint home loan with my DF that's worth $335,000 and I applied for a mobile phone 24 month contract through my usual phone company and got denied! What the hell?! I make plenty of cash through my job to get one - it annoys me when banks can hand out that kind of money to teenagers that haven't got a damn idea on how to budget for a loan.

    Sorry LuLu - I shouldn't be venting in here, but it's something that grinds my gears

  17. #53

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    LJ - oh that sucks! Did you take your business elsewhere for a new phone?

    lulu - how is she going with the loan and car?

  18. #54

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    Well I daresay all her pay goes to maintaining it. Luckily her and BF managed to find a place to housesit closer to work so the fuel bill is cut.

    It was only a month or two in before she started whining about the pressure. She can't get any more hours at work (20 a week MAX), I think the poor kid is realising how little power she has with no experience and no education. She is doing very very well at her job and took over as manager temporarily but she got shafted at the last minute and is quite frustrated.

    It musn't be easy now BF has nearly graduated uni and is on BIG $$$ already. I separated myself from the whole situation a while back because it still grinds my teeth.

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