Chances of acceptance for finance?

2

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  • Apples2
    Apples2 Posts: 6,442 Forumite
    The higher your deposit the less you need to finance so yes you have a better chance.

    Be careful of agreeing to a ridiculous Apr though. May seem great to be accepted but comes at a huge cost.

    Financing on hp is generally easier as the car is secured, but in your position may well be something you come to regret later.

    Please don't even consider dragging your family into it. Your choice, your car, your finance
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    j.wallace wrote: »
    OK, thanks for the analogy Roberto. Would my chances of being accepted be higher if I managed to save say, half or 2/3 of the value of the car then perhaps get the remaining finance secured by one of my parents?

    Car finance HP used to be easy for acceptance a few years back but with the likes of lloyds & Santander now amongst the finance it's s lot more difficult now.

    Without any credit history of managing credit lines especially with the default it will Be very unlikely thou would be accepted even with a big deposit.

    You could try the likes Of car craft who takes anyone but I don't recommend it.
  • rdwarr
    rdwarr Posts: 6,159
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    You're 22 and you "want a new car". Could you not wait until you can afford one? It's a massive amount to spend given your income and it's totally unnecessary expenditure.
    Look after yourself - don't follow the herd into a lifetime of debt.
    Can I help?
  • j.wallace
    j.wallace Posts: 6 Forumite
    Thanks for all the advice, you've all been very helpful. Think I'm going to need to sit down, clearly work out my finances and see if I can't wait 6-12 months for the car.

    Unless anyone's got 8k to spare....
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    j.wallace wrote: »
    Thanks for all the advice, you've all been very helpful. Think I'm going to need to sit down, clearly work out my finances and see if I can't wait 6-12 months for the car.

    Unless anyone's got 8k to spare....

    If I would of won the Euro lottery fri I would be quite happy to spare you 8k.
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    If you do get finance beware of car dealerships' nasty habit of quoting flat rate interest. You need to double the flat rate to get an approximate APR.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • Do you really need an £8k car? Plenty of decent, older ones (that would be cheap to run and insure) for less than £3k.

    At your age insurance really will work against you so in the long run it will be cheaper to insure a banger until you are 25 and then look to get something a bit more flashy, and by this time perhaps you could have saved for one outright!

    Good luck.
    Thinking critically since 1996....
  • "The car I wish to purchase will be around £8,000 for which I need finance. I have applied for a personal loan, which was recently declined."


    Just out of interest, and if it isn't too off topic, what was the car j? Work in the industry - might be able to suggest some (cheaper) alternatives.
  • KingElvis
    KingElvis Posts: 4,100 Forumite
    Just buy the banger, this week or next month you know you're gonna go for it.

    Good luck.
    "We want the finest wines available to humanity, we want them here, and we want them now!"
  • rtho782
    rtho782 Posts: 1,189
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    I think the issue is that you have no credit history.

    Your Gym membership won't show on your credit file as it was not a credit agreement, however the only thing you have had is a mobile phone. Nobody will lend you 8k on the basis of a phone contract.

    HP might be a better bet. I've had loans with Black Horse (part of Lloyds) even when I had defaults. Too many attempts in too short a period will screw you for a few months though.
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