Im 18 years old, coming up to my 1 years No claims bonus, and I am looking into financing a Fiesta ST. I earn £1000 roughly and work for my Dad who owns a very very successful company so there is no chance of that going downhill any time soon.
I need a fairly decent car for the job as sometimes there can be a fair bit of driving which is a good reason to get a new car as mine is on its last legs, I also am told I need a good but not too good car for the job as it has to have the correct image on the company.
I'm sure my Dad would be a guarantor as one of these, or 10 of these for that matter, wouldn't even dent him financially, also it's difficult to get into the stage where I wouldn't have a job to pay for it as at the end of the day im working for my Dad....
Is this a good idea? What kind of length would you go for on the finance? What would you think are good monthly payments for my wage etc.
P.S. I am aware of the financial costs of running a car before people mention this, the car I am looking at is around half the price on insurance of my current car for example!
Financing car at 18
|Why bother with a post grad? Are they even worth it? Have your say!||26-10-2016|
Last edited by cursor28; 03-05-2016 at 15:56.
- 03-05-2016 15:54
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- 03-05-2016 16:17
Would it not make more sense for your dad to lease you a car via the company?
As for your questions, your wage (is that £1k before or after tax?) is largely immaterial, it's more how much cash you actually have left over once rent, bills, etc are gone, so much is that?
- 03-05-2016 16:50
My Dad has told me he will get me a lease car in 2-3 years but wants me to get my first few cars to "teach me the value of money", hence the fact I am on minimum wage for my age, and am treated the same as every other employee.
That wage was after tax.
Also I have no major bills at the moment, the only one I have is paying my family rent, again to be shown the value of money and a phone contract. (£150) per month.
So all in all I have around £850 free to spend what I want on per month if that helps.
- 03-05-2016 16:52
For sure I could just wait a few more months and buy it out right but my car is at its major service changes where parts require to be changed due to mileage and if I keep going at the rate I am at, I will have to spend big at my next service which is something I don't want to be doing if I am going to be selling it a few months after..