Car loan

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Gggggggg8
Gggggggg8 Posts: 2 Newbie
in Loans
In the past 3 months I have applied for 3 personal loans for 13k for a car. Credit rating is excellent but keep getting bad apr's. I've been offered 9% twice and then today 14%. I'm 26 with a mortgage and earn 42k. Is it worth me just going and getting the car with car finance? Which I'm hoping would be 5-6% or would have applying for the personal loans ruined my chances?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You've found out the value of your excellent credit score then.

    Car finance can be easier to get if lenders are wary of you, as the loan is secured.

    But I'd only give it one more go. Repeated applications have made you look more than a little desperate.

    Have a look at your credit files before you do though. There appears to be something that is making you high risk.
  • Gggggggg8
    Gggggggg8 Posts: 2 Newbie
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    Thanks! The first thing I did before applying for any was check my files and there was nothing to consider me a risk and my score was excellent! Guess I'm just not meant to have a nicer car! :money: lol
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Remember the scores are fictional. 18 year olds and bankrupts also have high scores.

    They don't get loans either...
  • bazzyb
    bazzyb Posts: 1,584 Forumite
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    Do you have much other credit than the mortgage? If not then going from no unsecured borrowing to £13k is a big jump. Car finance is less risky to the lender as they can repossess the car if you don't pay.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Gggggggg8 wrote: »
    Thanks! The first thing I did before applying for any was check my files and there was nothing to consider me a risk and my score was excellent! Guess I'm just not meant to have a nicer car! :money: lol

    Thats your opinion though, from a lenders perspective there could have been something they saw which made you a risk.
  • Geoff1963
    Geoff1963 Posts: 1,088 Forumite
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    Someone once described Ford as a business which made money by giving out loans ; and making cars ,was just a way for them to attract customers.
    As bazzyb says : the car company is effectively giving you a secured loan, while the banks would be giving you an unsecured loan.
  • Gambler101
    Gambler101 Posts: 580 Forumite
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    OP I would advise to save up for 3-5 years then buy your dream car without a huge loan around your neck.

    And if you do manage to save £13000 up, I bet you wont be quite so keen to hand it over for a car.

    Loans make the value of money seem less than it really is.
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX :D:D
  • TrustyOven
    TrustyOven Posts: 746 Forumite
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    edited 15 July 2017 at 1:57PM
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    Gambler101 wrote: »
    OP I would advise to save up for 3-5 years then buy your dream car without a huge loan around your neck.

    And if you do manage to save £13000 up, I bet you wont be quite so keen to hand it over for a car.

    Loans make the value of money seem less than it really is.

    ^^ This! Wise words. :beer:
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