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  • FIRST POST
    • Gggggggg8
    • By Gggggggg8 14th Jul 17, 7:09 PM
    • 2Posts
    • 0Thanks
    Gggggggg8
    Car loan
    • #1
    • 14th Jul 17, 7:09 PM
    Car loan 14th Jul 17 at 7:09 PM
    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?
Page 1
    • zx81
    • By zx81 14th Jul 17, 7:11 PM
    • 14,156 Posts
    • 14,856 Thanks
    zx81
    • #2
    • 14th Jul 17, 7:11 PM
    • #2
    • 14th Jul 17, 7:11 PM
    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
    • By Gggggggg8 14th Jul 17, 7:18 PM
    • 2 Posts
    • 0 Thanks
    Gggggggg8
    • #3
    • 14th Jul 17, 7:18 PM
    • #3
    • 14th Jul 17, 7:18 PM
    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! lol
    • zx81
    • By zx81 14th Jul 17, 7:22 PM
    • 14,156 Posts
    • 14,856 Thanks
    zx81
    • #4
    • 14th Jul 17, 7:22 PM
    • #4
    • 14th Jul 17, 7:22 PM
    Remember the scores are fictional. 18 year olds and bankrupts also have high scores.

    They don't get loans either...
    • bazzyb
    • By bazzyb 14th Jul 17, 7:56 PM
    • 1,046 Posts
    • 3,196 Thanks
    bazzyb
    • #5
    • 14th Jul 17, 7:56 PM
    • #5
    • 14th Jul 17, 7:56 PM
    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
    • By DCFC79 14th Jul 17, 8:17 PM
    • 30,300 Posts
    • 19,166 Thanks
    DCFC79
    • #6
    • 14th Jul 17, 8:17 PM
    • #6
    • 14th Jul 17, 8:17 PM
    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! lol
    Originally posted by Gggggggg8
    Thats your opinion though, from a lenders perspective there could have been something they saw which made you a risk.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Geoff1963
    • By Geoff1963 15th Jul 17, 12:03 AM
    • 1,056 Posts
    • 677 Thanks
    Geoff1963
    • #7
    • 15th Jul 17, 12:03 AM
    • #7
    • 15th Jul 17, 12:03 AM
    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
    • By Gambler101 15th Jul 17, 9:25 AM
    • 528 Posts
    • 1,292 Thanks
    Gambler101
    • #8
    • 15th Jul 17, 9:25 AM
    • #8
    • 15th Jul 17, 9:25 AM
    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
    • TrustyOven
    • By TrustyOven 15th Jul 17, 12:22 PM
    • 672 Posts
    • 713 Thanks
    TrustyOven
    • #9
    • 15th Jul 17, 12:22 PM
    • #9
    • 15th Jul 17, 12:22 PM
    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.
    Originally posted by Gambler101
    ^^ This! Wise words.
    Last edited by TrustyOven; 15-07-2017 at 1:57 PM. Reason: Added bold emphasis
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