Best way to purchase a new car

The_Boss

I'm after a new car. To cut a long story short, I have a good credit rating with Equifax and Poor with Experian. This should hopefully change to at least fair in the next few days when a search disappears and they have updated my payment details.

Now basically, I see this car purchase as a one shot method. If one method fails, the other will due to an extra credit search.

So what would be the best option?

Buy the car on a PCP or hire purchase agreement?
Get a loan from a company for £15k?

The loan might appear easier and more cost effective, but what if they dont want to lend me £15k?

Decisions decisions.....

cheggers

My advise would be avoide the finance from the garage they tend to charge 9.9% and above.

Go with a personal loan from Nationwide @ 6.7%, not the most competative rate on the market, but the rate you see if the rate you get. Where as some of the other marker leading rates are only typical rates so your not forced to get 5.5% as your rate with other lenders due to your credit rating problems.

The_Boss

Good advice. I'm going to check out the Nationwide loan and make a decision in a few days when I have checked my credit score from Experian.

the PCP through Sainsburys bank is charged at 6.8% interest flat so its pretty much 50-50 I guess. But would I have a better chance with PCP since the loan is secured on the car? I.e. they would be more willing to lend the money with a lower score since if I default they can take the car back?

The_Boss

Ok, I want to get a loan from an Equifax only company. I have looked on the list on this site of who uses which agency.

I was set to go with AA, but on their terms, they say they may use a credit reference agency and advice potential customers to write to Experian and Equifax if details are wrong.

I was considering IF too, but someone on here said that since they have been taken over by Halifax (or something similar) they also use Experian.

So can anyone confirm that the above will ONLY use Equifax?

EDIT : I called The AA and they said they do use BOTH Experian and Equifax.

EDIT 2 : I just called Intelligent Finance and they said they also use Experian. Looks like the list is a bit out of date

cheggers

I think if your having to look into who does the credit score, you should just go with Nationwide and at least you'll be guaranteed a half decent rate.

The_Boss

So you reckon Nationwide will still take me, even if after doing their search it comes back with a rating of 'very poor'?

Also, is there any guideline of how much you should ask to borrow as a percentage of your income?

BWZN93

Nationwide use experian and if you have bad credit you will probably get rejected tbh. My experian record is fairly good with only 1 bad thing on there (which I am currently disputing too) and I got rejected.

(I know staff who work there and know that it is a lot harder to get credit facilities if you dont have good records)

Jo xx

mercman_3

am not sure which credit agency they use, but it is definatly worth taking a look at the following

http://www6.marksandspencer.com/pages/default.asp?PageId=MI&Product=BP

This is a loan @ 6.2 from M&S, best thing of all is you can defer upto 60% of the loan amount.........is way worth it as it does not appear that you are charged interest on the deffered amount until after the loan period ends........so why not go for it

only word of advice would be to buy a decent motor....something that will retain at least the outstanding deferred amount


Hope this helps


Regards

Pete

The_Boss

You know, that is brilliant. They are probably Experian, but if the loan is secured on the car, then that means it will be easier to get. I'm going to take a look early in the new year.

vansboy

Don't forget to check This Weeks Best Deals on http://www.honestjohn.co.uk when you're ready.

The most up to date info n stuff, about whats the REAL price you need to pay, for your new car!!

& loads other excellent motor related stuff - check in The Backroom - Discussion & you'll see!!

VB

DesG

mercman wrote:

........is way worth it as it does not appear that you are charged interest on the deffered amount until after the loan period ends........so why not go for it

Of course you are paying interest on the deferred amount, it is just the capital repayment that is being deferred

Cheers, Des.