Chances of acceptance for finance?

j.wallace
j.wallace Posts: 6 Forumite
Hi everyone, hope you're enjoying your weekend. I'm going to keep this short and sweet.

I want a new car.

I am 22 years old and live in a flat but do not pay rent or bills (it's above my Father's pub). I'm still registered to my parent's address and on the electoral roll there. I earn £20,000 per annum basic plus commission as a recruitment consultant and my only monthly out-going is a phone bill at £20 per month.

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.

My credit rating on creditexpert is 966 and is rated excellent.

What are my chances of being accepted for car finance with a dealership?
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Comments

  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    What's your credit history like?
  • j.wallace
    j.wallace Posts: 6 Forumite
    edited 29 July 2012 at 6:48PM
    It shouldn't be anything other than good. I once had to make repayments to a debt company for a gym membership but that was when I was 18, 4 years ago. Other than that I've had other direct debits which I've never missed.
  • Apples2
    Apples2 Posts: 6,442 Forumite
    Then it's far from good
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    j.wallace wrote: »
    It shouldn't be anything other than good. I once had to make repayments to a debt company for a gym membership but that was when I was 18, 4 years ago. Other than that I've had other direct debits which I've never missed.

    Forget about 8k for a car because you haven't got a hope in hell pal.
  • j.wallace
    j.wallace Posts: 6 Forumite
    Could you explain?
  • DCFC79
    DCFC79 Posts: 40,598
    Name Dropper First Anniversary First Post
    Forumite
    edited 29 July 2012 at 7:01PM
    j.wallace wrote: »
    Could you explain?

    Because you defaulted on a gym membership, i know im going to say the word or words thats not liked but why not save up for it ?

    You earn 22k so surely you have a fair wad saved up by now, how long you been in the job ?

    Maybe speak to your own bank.
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    j.wallace wrote: »
    Could you explain?

    I am not the best in explaining the reasoning of you're acceptance for a 8k loan,hopefully someone will explain better then what I could.
  • j.wallace
    j.wallace Posts: 6 Forumite
    Ouch, I thought that would have been off my record for now! How long will it stay on and why is my credit rating excellent!?

    I've only been at the firm 4 months now and have just finished decorating the flat, any spare cash up until now has been spent on decorating.

    I genuinely have no other reason for not wanting to save up for it other than I am impatient. I would have absolutely no problem making the payments. Surely it would be far easier for me to secure a hire purchase as I have the car as collateral?
  • RobertoMoir
    RobertoMoir Posts: 3,458
    First Anniversary Combo Breaker
    Forumite
    j.wallace wrote: »
    Ouch, I thought that would have been off my record for now! How long will it stay on and why is my credit rating excellent!?
    1. Credit histories last six years.
    2. The numbers that credit reporting agencies furnish you with are pulled out of their backsides and mean zero point nothing when it comes to actually getting a loan.
    j.wallace wrote: »
    I've only been at the firm 4 months now and have just finished decorating the flat, any spare cash up until now has been spent on decorating.

    I genuinely have no other reason for not wanting to save up for it other than I am impatient. I would have absolutely no problem making the payments. Surely it would be far easier for me to secure a hire purchase as I have the car as collateral?

    Easier... well maybe. Not the same thing as easy. Doing brain surgery with your eyes shut is easier than doing brain surgery with your eyes shut while drunk off your head and juggling chainsaws while balancing on a tightrope, but if you were the one going under that surgeon's knife, would you say "ok, just with your eyes shut is easier now you've put it like that, you're fine, lets do this" or would you say "what the hell? Are you even a real doctor? I think I want the op done by someone else".

    If you've only been working for a few months and have defaults in your credit history and have been turned down by a reputable lender then you're likely to get finance from anywhere even vaguely reputable/reasonable.
    If you don't stand for something, you'll fall for anything
  • j.wallace
    j.wallace Posts: 6 Forumite
    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?
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