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  • FIRST POST
    j.wallace
    Chances of acceptance for finance?
    • #1
    • 29th Jul 12, 7:27 PM
    Chances of acceptance for finance? 29th Jul 12 at 7:27 PM
    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?
Page 1
  • BugsyBrowne
    • #2
    • 29th Jul 12, 7:30 PM
    • #2
    • 29th Jul 12, 7:30 PM
    What's your credit history like?
  • j.wallace
    • #3
    • 29th Jul 12, 7:45 PM
    • #3
    • 29th Jul 12, 7:45 PM
    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.
  • Apples2
    • #4
    • 29th Jul 12, 7:47 PM
    • #4
    • 29th Jul 12, 7:47 PM
    Then it's far from good
  • BugsyBrowne
    • #5
    • 29th Jul 12, 7:50 PM
    • #5
    • 29th Jul 12, 7:50 PM
    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.
    Originally posted by j.wallace
    Forget about 8k for a car because you haven't got a hope in hell pal.
  • j.wallace
    • #6
    • 29th Jul 12, 7:55 PM
    • #6
    • 29th Jul 12, 7:55 PM
    Could you explain?
    • DCFC79
    • By DCFC79 29th Jul 12, 7:58 PM
    • 26,757 Posts
    • 16,971 Thanks
    DCFC79
    • #7
    • 29th Jul 12, 7:58 PM
    • #7
    • 29th Jul 12, 7:58 PM
    Could you explain?
    Originally posted by j.wallace
    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.
    Je Suis Charlie
  • BugsyBrowne
    • #8
    • 29th Jul 12, 7:59 PM
    • #8
    • 29th Jul 12, 7:59 PM
    Could you explain?
    Originally posted by j.wallace
    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
    • #9
    • 29th Jul 12, 8:04 PM
    • #9
    • 29th Jul 12, 8:04 PM
    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
    • By RobertoMoir 29th Jul 12, 8:24 PM
    • 3,349 Posts
    • 4,080 Thanks
    RobertoMoir
    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!?
    Originally posted by j.wallace
    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.
    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?
    Originally posted by j.wallace
    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.
    Former Bailiff.
    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.
  • j.wallace
    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?
  • Apples2
    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
    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?
    Originally posted by j.wallace
    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
    • By rdwarr 29th Jul 12, 8:57 PM
    • 5,706 Posts
    • 6,498 Thanks
    rdwarr
    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
    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
    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....
    Originally posted by j.wallace
    If I would of won the Euro lottery fri I would be quite happy to spare you 8k.
    • iolanthe07
    • By iolanthe07 30th Jul 12, 10:59 AM
    • 4,539 Posts
    • 4,323 Thanks
    iolanthe07
    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.
    • somethingcorporate
    • By somethingcorporate 30th Jul 12, 12:12 PM
    • 8,634 Posts
    • 8,377 Thanks
    somethingcorporate
    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....
  • thepasty
    "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
    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!"
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