Assuming that you have to have a car NOW rather than wait a year I would suggest the only way forward is likely to be get it from a dealer (franchised or otherwise) and take out an HP agreement on the car. You'll need a deposit though, and your parents will normally need to act a guarantor or joint applicant. The car wont be yours officially until the final payment and they cost tons to redeem early.

If you can wait, then build up your rating as suggested elsewhere. See if you can get maybe a £200 or so overdraft from your own bank, this will also build you a credit rating for the future. Try applying in 6 months to a year or so if you want the loan in your own name.

DO NOT GO NEAR ANY OF THE WELCOME/PROVIDENT/YESCAR TYPE COMPANIES IT NOT WORTH IT

iwantacar:

i have applied for a capital one credit card, i will use it for 1 or 2 small purchases .

After 3 statements, they promise to increase limit.

Good idea. However you would be better using it for all your monthly purchases, not just 1 or 2, as long as you are able to pay off your monthly spend in full.

However don't accept a bigger credit limit than you need because this will reduce the amount of further credit any future lender will offer.

conmankiller:

ATM - Zephyr, although the two were similar.

http://www.channel4.com/4car/ft/feature/top+ten/1741/2

http://www.oldclassiccar.co.uk/zephyr.htm

Well CMK,

You have jogged my memory re the old MK 4 Zephyr, they were a comfortable car but with cooling system problems. I read the top article about the 4WD versions built for the Police, who then handed them back to Fords.

A couple of guys working with me at Ford Trucks plant in the late 70's had Mk 4's and they were affectionately known as "Dagenham Dustbins".

Soz, iwantacar - Didn't mean to be rude, it's just a bit of innocent banter between ATM and myself when our paths meet.

Yes, getting a Cap 1 credit card will build up your rating, as you state... try ensure you always pay preferably in full every month to avoid any interest. !

Useful link :

http://www.moneysupermarket.com/c/news/how-to-improve-your-credit-score/0004547/

FYI

After consulting with my parents, i have applied for a capital one credit card, i will use it for 1 or 2 small purchases and pay IN FULL EVERY MONTH. this is to improve my overall general credit, something i maybe should of done when i turned 18 anyway.

After 3 statements, they promise to increase limit.

and can i just ask, how did this thread turn into a classic car discussion :S

ATM - Zephyr, although the two were similar.

http://www.channel4.com/4car/ft/feature/top+ten/1741/2

http://www.oldclassiccar.co.uk/zephyr.htm

iwantacar

Sorry I may not be of much help on this question but I would think that Lenders would be looking at a minimum of 6 months or maybe 12 months credit card history.

I never bothered with credit cards till after I bought my first house.. Mum used to lend me a reasonable amount if I had to get a car or motorbike and of course never charged interest.

It is going to be even harder for you now due to the banks cutting back severely with their lending.

CMK

Well I had the same problem with parking some of my motors round near Mum's, I left the Singer Vogue and Austin Westminster round the corner in the next road and parked the 1959 Plymouth Hearse over in the trading estate.

Flying Pig - My memory must be going now, was that the Hillman Imp or was it my beloved Zodiac?

No problem ATM.

Can i ask, would getting a credit card for a few months improve my credit that much? if i pay off in full every month and just use it for small purchases like food etc...

example scenario: i get a credit card, pay off in full, after 3 months they increase limit, then i apply for loan? (and after 3 months, il probably have saved £2000 anyway so would only need to borrow £2k.

Suggestions?

I understand waiting another 3 months will be frustrating, but it's something i am willing to do as it will only benefit me long-term.

iwantacar - This is my whole point about firstly improving your credit history, without undertaking this process you are severely limiting and restricting the amount of reasonable lenders that are known to man that are available, instead you're having to scrape the barrell of scum lenders (Sharks) which I personally would not recommend to my enemies..... also the more failed applications you incur then the worse your credit report becomes...viscious circle... reality is a b.itch. !

ATM - It looks like the old adage of putting old heads on young shoulders rings true on this. What ever happened to a good old fashioned bit of "Wembley turf filler" in the wing of a Flying Pig being considered a perfectly good enough quality mowtar. !

: -- )

Hi,

All my family are in the motor trade, and what i explained above has been the plan for some time.

Its possible that i may only need to borrow £3000, but then wait a little longer, as im sure i can save up a further £1000 in a couple of months.

I have identified the car, priced at £4k, i'm confident i can haggle them down to £3500 or less, alternativley, i will purchase from auction (i go every week), as i am aware there is a reserve on the same car for £3000, but that one has higher mileage.

Please do not try to change my decision, because it has been made for a while and i have the full support of all my family and friends.

Without trying to sound big headed, a "banger" or "cheap runaround" would not fit in with my lifestyle, my mother wouldn't allow me to park it near our house haha

Can anyone put me in the direction of some lenders? im not bothered about the interest as long as its not over 70%, because my financial budget would only allow upto 70% interest over te desired timescale.

Thanks in advance

iwantacar:

I am 18 years old and have no previous credit history.

and only use my debit card.

Can't help with the car loan advice but it seems obvious that you need to start building a credit history. Switch all your spending to a credit card and pay off in full every month.

If you have to apply for a credit card the application success and credit limit granted will be a better guide to how lenders score the risk than your own self-assessment.

Its a good thing not to take a credit card from the organisation you bank with so that you will not be open to set-off.

Iwantacar & CMK,

Apparently Welcome Car Finance has been wound down over the past few months and were just selling off old stock of cars but not replacing any.

Cattles has shut them down in late April, one less rogue outfit to take advantage of people with no or poor credit history.

£4,000 is a lot to splash out on credit for a car at 18, I know you have been careful and worked out the running costs including insurance which must cost a lot, but what if some serious mechanical problem occurs or an uninsured driver hits your car - you could be left paying for this car and have no wheels.

As CMK mentioned (we're both oldies!) try and make do with a cheaper car for a couple of years, believe me you can get the same problems with a £4,000 car or a £400 car except the cheaper motor won't be so much of a bird-puller! I started off with old bangers because I couldn't afford car finance at the time, and when I did work my way up to buying a £12,000 one year old car on Hire Purchase I thought what a waste of money that turned out to be.

I hope you do manage to find something suitable that is a good bit cheaper, good luck.