Secured loan or not ???

Gadget-guy

We are looking for a new car as what we have at the moment is no way going to be big enough after a new addition :j in June, we have had not luck getting finance through a garage or an unsicured loan (apart from one at 24.5% :mad: and they could not give us enough). The only option left seems to be a secured loan but I have heard of many horror stories, we have a mortgage for £84,000, it was bought for £96,000 so have about £12,000 of our money in the house, it is worth about £100,000 on the market at the moment.
We would like to have about £11,000 for the new car so any suggestions would be great, thanks guys. :beer:

roswell

I guess the credit card shuffle may be out the question if you cant get enough finance through a garage, are you sure you can keep up the repayments ??? does it really need to be 11 K or could you get away with cheaper older car .... think purpose not street cred

Gadget-guy

Thanks for the reply Roswell believe me it is not street cred :cool: we are looking at but it is safety and purpose and it will be between £10,000 - £11,000 to purchase a 7 seater (and that is looking at the bottom end of the market), as far as managing the payments we are managing the similar payments on the car we have at the moment and although some people with a poor credit can be in major debt we are not, but still have a poor rating because we have let a few things slip just a little to much, but we are not in massive debt. We do not have the time to save the money for the car as the new baby is due in june and we will not get a great trade in either so can not afford a big deposit.
Roswell as far as the credit cards they will not accept us for any apart from crazy deals like Capital one.

margaretclare

A secured loan - i.e. a debt secured on your home - is not a good idea. The obvious risk is that you can lose your home if you don't/can't keep up repayments on the loan as well as the mortgage. Been there, done that (sigh)

In addition, paying a secured loan to buy an asset which will depreciate, like a car, is not a good idea.

However, I can see that you seem to have few options.

Best wishes

Aunty Margaret

Bestthingsinlifearefree

Gadget-guy wrote:

Thanks for the reply Roswell believe me it is not street cred :cool: we are looking at but it is safety and purpose and it will be between £10,000 - £11,000 to purchase a 7 seater (and that is looking at the bottom end of the market), as far as managing the payments we are managing the similar payments on the car we have at the moment and although some people with a poor credit can be in major debt we are not, but still have a poor rating because we have let a few things slip just a little to much, but we are not in massive debt. We do not have the time to save the money for the car as the new baby is due in june and we will not get a great trade in either so can not afford a big deposit.
Roswell as far as the credit cards they will not accept us for any apart from crazy deals like Capital one.

7 seats ??? I take it you and the other half have 5 kids ?

If yes maybe you need it, if no I would just get a normal car for a couple of grand rather than put my house on the line for a car.

andymac746

Sorry to say but you wont get the money off your morgage as they would be lending you nearly 100% of the house's market value which they wont do. Dont apply for loans too much as your credit rating will go even lower.

AMILLIONDOLLARS

Gadet!Guy

I am a bit worried by your statement "we have let a few things slip just a little to much", with what seems another baby on the way, is it wise to borrow at this stage?. It also seems that the powers that be are worried about your current situation, hence the lack of offered credit.

Take heed, every disappointment is for a good.

inmypocketnottheirs

7 seaters are on Auto Trader website from about £3000 for a citroen sinergie, ford galaxy or toyota previa. I paid about £13000 a year ago for a 4 year old Mercedes 7 seater E class estate, so there are a lot more cheaper options available. Also Peugeot 406 Family estate.

In your current situation, as advised above I would be very cautious about spending £11000 on a car, especially secured. With a new baby on the way expenses are going to increase, and I would not make this commitment without being absolutely, totally, 100% certain, without any shaow of a doubt about being able to maintain the payments.

Best of luck!