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Chances of acceptance for finance?
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# 1
j.wallace
Old 29-07-2012, 7:27 PM
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Default Chances of acceptance for finance?

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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# 2
BugsyBrowne
Old 29-07-2012, 7:30 PM
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What's your credit history like?
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# 3
j.wallace
Old 29-07-2012, 7:45 PM
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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.

Last edited by j.wallace; 29-07-2012 at 7:48 PM.
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# 4
Apples2
Old 29-07-2012, 7:47 PM
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Then it's far from good
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# 5
BugsyBrowne
Old 29-07-2012, 7:50 PM
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Quote:
Originally Posted by j.wallace View Post
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.
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# 6
j.wallace
Old 29-07-2012, 7:55 PM
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Could you explain?
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# 7
DCFC79
Old 29-07-2012, 7:58 PM
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Quote:
Originally Posted by j.wallace View Post
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.

Last edited by DCFC79; 29-07-2012 at 8:01 PM.
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# 8
BugsyBrowne
Old 29-07-2012, 7:59 PM
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Quote:
Originally Posted by j.wallace View Post
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.
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# 9
j.wallace
Old 29-07-2012, 8:04 PM
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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?
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# 10
RobertoMoir
Old 29-07-2012, 8:24 PM
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Quote:
Originally Posted by j.wallace View Post
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.
Quote:
Originally Posted by j.wallace View Post
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.
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I'm here to help but I reserve the right to be blunt and to the point rather than sugar-coat my replies.


The problem with consolidation loans is the absurd idea that "more credit" is the answer to too much credit.
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# 11
j.wallace
Old 29-07-2012, 8:43 PM
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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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# 12
Apples2
Old 29-07-2012, 8:48 PM
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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
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# 13
BugsyBrowne
Old 29-07-2012, 8:51 PM
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Quote:
Originally Posted by j.wallace View Post
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.
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# 14
rdwarr
Old 29-07-2012, 8:57 PM
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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?
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# 15
j.wallace
Old 29-07-2012, 9:01 PM
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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....
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# 16
BugsyBrowne
Old 29-07-2012, 9:04 PM
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Quote:
Originally Posted by j.wallace View Post
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.
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# 17
iolanthe07
Old 30-07-2012, 10:59 AM
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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.
"Debt is the slavery of the free" (Publilius Syrus, First Century BC)
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# 18
somethingcorporate
Old 30-07-2012, 12:12 PM
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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.
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# 19
thepasty
Old 30-07-2012, 9:47 PM
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"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.
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# 20
KingElvis
Old 31-07-2012, 9:22 AM
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Just buy the banger, this week or next month you know you're gonna go for it.

Good luck.
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