Car Loan / Car Finance

george1986_2

Over the past 18 months i have fallen behind with alot of payment had letterds from debt collection agencys who have bought my debt etc etc. I now have my finances sorted and pay my creditors a certain amount each month and all agreements are up to date. I am wanting to get a new car on finance but i know alot of companys will not except me becasue i have such a bad credit history. Does anyone know any good comanys where i will not get ripped off?? :j

~Beanie~

I would forget the idea for a while.

The only companies that will touch you with such a bad credit history are the likes of Welcome Finance who will charge you an extortionate interest rate.

george1986_2

I would love to forget not getting anymore finance, but this is only my option i really do a new car for work puroses and my car is about to fall apart. Thanks Beanie

Jvic28

I agree. The reason they charge such a high rate is because you are a bad risk. And there's no way to hide that at the moment. Wait until your credit is better. You'll be grateful you did in the long run.

george1986_2

How long would you suggest waiting, as i will be paying my creditors back months untill they are clear.

Jvic28

You could end up paying thousands extra by going with these companies. When you say your car is falling apart, are you exaggerating, it could end up cheaper to pay for repairs for the time being.

Jvic28

george1986 wrote: »

How long would you suggest waiting, as i will be paying my creditors back months untill they are clear.

The late payments and defaults stay on your credit file for 6 years. Your "credit rating" will start to improve before then however, but there is no way of saying how long really. But if you can't get finance with a mainstream finance company then it's too soon.

george1986_2

I had to pay nearly £500 for repairs on the MOT last year in January, and January is nearly here again for the MOT and i am quite sure theres more problems i also have tax, Insurance etc running out at the end of January.

Jvic28

Well the tax and insurance would have to be paid whether you had a new car or not. I stick by my advice though. If you're unable to get finance mainstream then it'll cost you a fortune. Why not see what happens when the MOT comes around?

george1986_2

Yes i will wait and see what they say about the MOT. Thanks alot for your advice. Do you think i will be waiting years now before i even apply for finance? What about a mortgaga?

Jvic28

There is no way of saying. I can't say how every finance company with react to your debt problems in the past, especially as I have no idea as to the full extent of those problems. A good indicator though, is if you are declined.