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  • FIRST POST
    • asoe209
    • By asoe209 20th Mar 17, 9:22 AM
    • 326Posts
    • 167Thanks
    asoe209
    Will getting a loan effect me getting finance on a car?
    • #1
    • 20th Mar 17, 9:22 AM
    Will getting a loan effect me getting finance on a car? 20th Mar 17 at 9:22 AM
    Morning,


    Not to sure if the is the correct board to post this question. hopefully its a simple one.


    I'm looking/ considering getting a loan to consolidate a few accounts. in order for me to pay back one account of a set time.


    But I also need to get a new car this year likely on finance and towards the end of the year, I just wonder if me getting a loan will affect may chances of getting finance on a car?


    I set the car for the end of the year in order for me to get some of these accounts paid off. I am just looking at other options really.


    all the accounts I am paying are paid onetime every month so there is no issue there. and i'm looking in the region of around £6000.


    some of this
Page 1
    • zx81
    • By zx81 20th Mar 17, 9:24 AM
    • 10,819 Posts
    • 10,727 Thanks
    zx81
    • #2
    • 20th Mar 17, 9:24 AM
    • #2
    • 20th Mar 17, 9:24 AM
    Additional borrowing will obviously have an impact, but could be offset by clearing and closing the other accounts, assuming you actually do.
    • DCFC79
    • By DCFC79 20th Mar 17, 9:28 AM
    • 28,728 Posts
    • 18,144 Thanks
    DCFC79
    • #3
    • 20th Mar 17, 9:28 AM
    • #3
    • 20th Mar 17, 9:28 AM
    Morning,


    Not to sure if the is the correct board to post this question. hopefully its a simple one.


    I'm looking/ considering getting a loan to consolidate a few accounts. in order for me to pay back one account of a set time.


    But I also need to get a new car this year likely on finance and towards the end of the year, I just wonder if me getting a loan will affect may chances of getting finance on a car ?


    I set the car for the end of the year in order for me to get some of these accounts paid off. I am just looking at other options really.


    all the accounts I am paying are paid onetime every month so there is no issue there. and i'm looking in the region of around £6000.


    some of this
    Originally posted by asoe209

    No need to get finance, you can save yourself alot by buying second hand.

    It depends how much the finance be as to whether the loan would have an impact on it.

    Consolidation only works if your committed to it, theres so many stories of consolidating rarely works. You would need to close the accounts you would pay off.
    Last edited by DCFC79; 20-03-2017 at 9:31 AM.
    Je Suis Charlie
    • MEM62
    • By MEM62 20th Mar 17, 9:48 AM
    • 1,060 Posts
    • 699 Thanks
    MEM62
    • #4
    • 20th Mar 17, 9:48 AM
    • #4
    • 20th Mar 17, 9:48 AM
    Debt consolidation often doesn't work. Although the debt is just moved and not cleared a sense of 'financial relief' is often felt that leads to fewer concerns over further spending.

    If you have this under control then fair enough but I would suggest that you think about your situation carefully as you may be at the beginning of a financial journey that you do not want to take.

    You are already talking about consolidating debts and the borrowing for a car - ie taking on more debt. Borrowing for cars in particular, is paying interest on funding the purchase of an asset with a value that falls like a stone.

    Think carefully about your next steps and your approach to your financial future. It would be a shame if you were to re-visit these forums in a year or two for advice on dealing with debts that you can no longer cope with.
    • Pixie5740
    • By Pixie5740 20th Mar 17, 10:07 AM
    • 9,656 Posts
    • 13,121 Thanks
    Pixie5740
    • #5
    • 20th Mar 17, 10:07 AM
    • #5
    • 20th Mar 17, 10:07 AM
    If you are budgeting properly what difference does it make whether you're making one payment a month or a dozen? Consolidating doesn't mean you will be paying debts off, you'll just owe someone else the money, and it only makes sense to do it if you can reduce the overall cost of your debt otherwise it's like a broken pencil.....pointless.

    Having debt when you apply for car finance could impact your ability to get car finance but then again it might not. It comes down to affordability and how you manage credit.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • asoe209
    • By asoe209 20th Mar 17, 11:14 AM
    • 326 Posts
    • 167 Thanks
    asoe209
    • #6
    • 20th Mar 17, 11:14 AM
    • #6
    • 20th Mar 17, 11:14 AM
    Thanks for all the comments guys.


    I can see why there would be concerns. but I am 100% committed to clearing these debts. this is only a thought and not a set in stone plan here.


    I have budget and working at paying my highest interest account which is my Very account. last month saw it rise to a payment of £400. but I believe that this should be dropping as this month is come in at £360 and I paid off £800 from it last month.


    I am putting extra where I can to pay that off.


    my lodger is moving out which will see a loss of and extra £300 per month, until I can get some one else. but I am 50/50 on doing this as its not been my cup of tea.


    I theory I should still be able to manage, it was more the very payment that was taking its toll.
    • robber2
    • By robber2 20th Mar 17, 12:20 PM
    • 197 Posts
    • 137 Thanks
    robber2
    • #7
    • 20th Mar 17, 12:20 PM
    • #7
    • 20th Mar 17, 12:20 PM
    Have you thought of getting one loan to cover paying off your existing debts AND paying for the car you need. Very likely you will get a lower APR on the loan doing ti this way.

    Rob
    • Tarambor
    • By Tarambor 20th Mar 17, 7:53 PM
    • 397 Posts
    • 243 Thanks
    Tarambor
    • #8
    • 20th Mar 17, 7:53 PM
    • #8
    • 20th Mar 17, 7:53 PM
    So committed to clearing debts but wants to take on even more finance.

    Wants to reduce outgoings because you're about to lose £300 a month income but then want to add finance for a car?

    Can't seem to control catalogue spending either given that it had risen to its highest point last month in a period where you claim to be budgeting to repay debts and a lump sum of £800 paid off it "reduced" payments to £360 which most people would find a ridiculous amount to be spending with a catalogue.

    Last thing you need to be doing is getting a new car on finance. Run what you've got.
    • asoe209
    • By asoe209 21st Mar 17, 8:38 AM
    • 326 Posts
    • 167 Thanks
    asoe209
    • #9
    • 21st Mar 17, 8:38 AM
    • #9
    • 21st Mar 17, 8:38 AM
    So committed to clearing debts but wants to take on even more finance.

    Wants to reduce outgoings because you're about to lose £300 a month income but then want to add finance for a car?

    Can't seem to control catalogue spending either given that it had risen to its highest point last month in a period where you claim to be budgeting to repay debts and a lump sum of £800 paid off it "reduced" payments to £360 which most people would find a ridiculous amount to be spending with a catalogue.

    Last thing you need to be doing is getting a new car on finance. Run what you've got.
    Originally posted by Tarambor


    Morning, I can see it sounds a bit nuts when read that way.


    We technically its moving the debt. and just an option to reduce total monthly outgoing.


    the car is required for work, not out of choice. 1 i'm breaking the terms of the car allowance agreement due to the age and requirements of my car.


    as for the catalogue this was used on essentials for the home when my partner and I moved in. she has since left and I have the bill. its not me treating my self to bits here and there. (s**t happens) and I paid that amount so I would not have extra interest added to my account.


    at present I pay just over the balance, as extra on BNPL items of course.


    but again, I was only looking as an option.


    the only thing that will happen is that I have to get a car, but not until debt is reduced. as £300+ a month is a ridiculous monthly outgoing.
    • asoe209
    • By asoe209 21st Mar 17, 8:42 AM
    • 326 Posts
    • 167 Thanks
    asoe209
    Have you thought of getting one loan to cover paying off your existing debts AND paying for the car you need. Very likely you will get a lower APR on the loan doing ti this way.

    Rob
    Originally posted by robber2
    no I did not think of that.
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