Financing for 17 year olds.

Discussion in 'Community Discussion' started by Hummer, Mar 15, 2008.

  1. Hummer macrumors 65816

    Hummer

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    Queens, New York NY-5
    #1
    I'm trying to purchase a car (actually the car isn't the hard part as I can currently afford a car, including maintenance because I could do it all myself with my experience), but I'm also trying to afford insurance at the same time. I can only pay for one at the same time. So I'm trying to take out a loan so I am able to pay off both of them at a slower rate but also at the amount I'd be able to pay for them both until eventually my insurance rate goes down.

    No parental involvement at all, not because I don't want them to be involved, it's just that they will not for fear of losing the house due to me driving idiotically and getting sued (For one I don't break 20 on streets and 50 on the highway, but they believe I'm highly influenced). Anyways I can currently only afford around 500 dollars a month. If I lease a decent car (low end japanese car, or volkswagen) , the insurance would cost me an equal amount or more (up to 700 bucks a month). I can only pay for one or the other at one time until I graduate which is when I can work more hours between my two jobs and then I can pay for them both.

    Now please guys forget about everything else. Assume you know nothing else about my life and try not to talk like you know what's best for me and what I should be doing instead of purchasing a car. I've heard it all from many different people. I simply would like to know if there is any possible way that I could get a bank or private company to loan me money towards a car.
     
  2. dukebound85 macrumors P6

    dukebound85

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    #2
    why not get a used car. this will have cheaper payments and lower insurance rates
     
  3. Hummer thread starter macrumors 65816

    Hummer

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    #3
    My insurance rate stays the same no matter what car I get believe it or not (this is how high of quotes I have gotten from insurance companies). Also with the experience my family has had with purchasing used cars, after a while they just become not worth it. I'd rather just lease something living in the city, something I'm not stuck with when it starts to lemon out.
     
  4. Nabooly macrumors 6502a

    Nabooly

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    #4
    I hope you're not planning on leasing a new car?
     
  5. yg17 macrumors G5

    yg17

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    #5
    You're 17, so you're not going to get a loan. Even if you were 18, you probably wouldn't get a loan (or would get one with a ridiculously high interest rate) due to not having any credit. Get your parents involved. They're not going to get sued, believe me, I know from experience. I was in an accident at 17, and ruled at fault and was sued. My insurance company took care of everything and it was settled out of court without me (or my parents) paying a dime out of pocket (other than the premium increases) or losing anything.
     
  6. ErikCLDR macrumors 68000

    Joined:
    Jan 14, 2007
    #6
    It's so much cheaper if you're under your parents insurance. $700 monthly seems very high. Don't use progressive or geico or allstate because they will charge you a lot. Find an insurance broker to find you car insurance.

    I wouldn't recommend making car payments. See if you can get your parents to buy the car and then have you pay them back. I doubt you can even make payments under the age of 18 because you don't have a credit score.

    Don't buy a VW, unless its an OLD one. Everyone I know that has owned a modern VW, including my family have had horrible reliability issues and they're not cheap to fix either. I read an article a few days ago saying that VW, along with Mercedes have the highest costs of ownership.

    Go with a Japanese car, definitely cheaper to maintain and less overall maintenance too. Higher resale value too.

    Talk to your parents more, see if you can get insured under them. The point of insurance is for your own protection. I am 17 too, and my insurance is about $2500 yearly which is high compared to most of my friends but thats probably because I drive a Land Rover w/collision & comprehensive insurance and my parents have nice cars. Furthermore there are 4 drivers in my household, and 5 cars which doesn't help either.

    Most of my friends' insurance is $1400-$1800 that are boys and 17 with no driving infractions. One of my friends has a 2002 BMW 540i and his insurance is $3600 :eek: yearly.
     
  7. dukebound85 macrumors P6

    dukebound85

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    #7
    i disagree. you will have lower rates if you were driving say an 02 civic that costs like 8k vs say a vette lol


    the value, age of car and type of car (sports, sedan, etc) all play into insurance rates. of course so does your driving record
     
  8. Nabooly macrumors 6502a

    Nabooly

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    #8
    Yeah the rate will definitely change based on what kind of car you drive. Heck theres a difference between rates for a V6 vs. a 4 cyl. Even the paint color can make a difference (red is the highest if i recall).
     
  9. yg17 macrumors G5

    yg17

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    #9

    I'm pretty sure that's not true.

    But I agree with the rest. It DOES make a difference on what kind of car you drive. Go onto one of the insurance websites and do a quote for yourself on something like a Honda Civic, then on something like a BMW M5, Corvette Z06, Dodge Viper or whatever your favorite expensive, powerful sports car is. There will be a huge difference.
     
  10. swiftaw macrumors 603

    swiftaw

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    #10
    I don't think it does, although, they say that red cars do get pulled over more often
     
  11. biturbomunkie macrumors 6502a

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    cali
    #11
    with a checking account which shows that you have steady income and a reasonable amount of down payment (like 1/2 of the car's out-the-door price), you should be able to finance a car. chances are a new car might be more appealing cos of its lower interest rate and the auto industry is going south. i have done it, and i wouldn't do it again but it's up to you. :)

    be sure to do more research if you are worried about your parents losing their house. i was told that as long as you are a minor and reside with a parent or guardian, he or she could still get sued. i never found out if it's true or not cos i moved out when i was 16/17.
     
  12. yg17 macrumors G5

    yg17

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    #12
  13. swiftaw macrumors 603

    swiftaw

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    Omaha, NE, USA
    #13
  14. yg17 macrumors G5

    yg17

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    St. Louis, MO
    #14

    He's not going to be able to finance a car 1t 17. Period. Taking out a loan is a legal contract and you must be 18 to sign one.

    And while I'm not sure if your parents can get sued or not, if you have halfway decent insurance, it won't matter because they'll pay EVERYTHING. My insurance company hired a lawyer for me. They paid out the settlement. My only cost throughout the entire ordeal was the gas I spent driving down to my lawyer's office a couple times.
     
  15. biturbomunkie macrumors 6502a

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    #15
    somehow i was thinking under 21 but totally missed the 17 part. :eek:
     
  16. CanadaRAM macrumors G5

    CanadaRAM

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    #16
    The age of majority differs by your state/province/country. 19 years in Canada.
     
  17. Hummer thread starter macrumors 65816

    Hummer

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    #17
    Getting my parents involved is not an option. I am very bitter at my parents for not putting me on their insurance when I said I'd pay for it. I even picked up a job working 28 hours a week with school to show them I could pay them. When that didn't work, I picked up a second job out of spite working 40 hours a week with school 7 days a week, thus screwing up my senior year of high school.

    My dad said he's afraid of losing the house. I went through the trouble of getting him information on how to put the house into a trust which would help him out if he were EVER to get sued not just by fault of myself. He totally ignored any of the information not even responding to the suggestion. They're both lazy excuse givers and I gave up trying to please them a long time ago, now I'm just trying to do things on my own. I recently took over my own phone bill and I'm attempting to put myself through school. I also will move out once I turn 18 under whatever financial circumstances...

    Anyways, yea, the only option I see working out now out of all of your responses is getting a car from a private seller and forgetting about the insurance part.
     
  18. swiftaw macrumors 603

    swiftaw

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    #18
    Do you mean, you don't plan on buying insurance?

    First of all that is illegal, secondly it is down right stupid.
     
  19. biturbomunkie macrumors 6502a

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    cali
    #19
    don't even think about that. you are too young to take that risk. consider the pros and cons - if anything happens, it could haunt you for the rest of your life.
     
  20. Hummer thread starter macrumors 65816

    Hummer

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    #20
    Yes, I know and yes I know. But at this point I'm doing everything out of strong personal spite. And it does sound like my only option. There is more that would lead to more insight on why I'm so desperate/crazy over driving, but yea I see no other viable options. A third job would require me to drop out and one very high paying job doesn't come without its "just as stupid as not buying insurance" as the very high paying jobs I know I can get would come without workers insurance and would basically be off any books of any kind (no not illegal activity, but just bad working conditions and no kind of job safety or insurance).
     
  21. swiftaw macrumors 603

    swiftaw

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    #21
    I think the only logical conclusion you can reach is that you cannot afford a car with all it's ancillary costs (which includes insurance, gas, registration, sales tax, and excise tax) especially if you also plan on moving out and getting your own place. Be glad that you live in a city that has decent public transport.
     
  22. Nabooly macrumors 6502a

    Nabooly

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    Aug 28, 2007
    #22
    Why is your dad so uptight about losing the house? And sued for what? Getting in an accident, and it being your fault? Well thats exactly what insurance is for. Unless your extremely poor you shouldn't even worry about losing the house, as long as you get insurance.
     
  23. biturbomunkie macrumors 6502a

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    cali
    #23
    in that case, you should really put yourself first - including your future.

    i've been there and i know it's hard. but how many months away from 18? also, the fact that you are in queens is way better than somewhere like los angeles in terms of pubic transportation.
     
  24. Hummer thread starter macrumors 65816

    Hummer

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    Queens, New York NY-5
    #24
    He just built a house and it's his dream or whatever but he keeps saying he's doing it for us. When he's definitely not doing it for me because I don't want this damn thing. (I know this sounds selfish, but I don't believe anyone asked him to build a house, it's all his idea and his project, but he's taking us along for the ride.)

    Sued for me getting into an accident with some friends or something, but over the insurance coverage range.

    That's the reason I started this thread. I can only afford a car, gas, registration and all that. I've factored in it all to realize all I cannot afford at the same time is insurance which is why I need some help which most people do need when buying a car. But the only problem is I am a minor and in this society I am not legally able to sign a contract or be trusted. So as of now I'm trying to find a way to solve this problem.

    Oh yea and commuting in Queens sucks.
     
  25. ErikCLDR macrumors 68000

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    Jan 14, 2007
    #25
    You really need to have a talk with your parents.

    You seem to be working too hard for this and you won't be able to get financing if you are under 18 and you won't be able to lease a car either.

    And the type of car makes a HUGE difference with your insurance. If you're driving an old beater your insurance is going to be zippo. If you're driving a new car you're going to want to have collision on it which is going to cost more, and the value of the car is higher. If you're driving a BMW M5 then your insurance is going to be even higher because its fast, expensive to fix, and very valuable.

    You really should be spending more time on school and less time working.

    Believe me I've done that math and there is no way I could afford a car, gas, and insurance at the age of 17.
     

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