Advice on my HP Agreement & Loan Please

tonyinessex

Hi, first time I have posted on this forum, although I'm a regular on another forum on MSE.

I've got a similar query to the guy above, I have car finance which I took out 17 months ago on a 4 year term, 24%APR . According to my calculations I have paid off about £2100 of the £8000 balance, The car is worth about £6000 now so I am just about liquid on it hopefully.

I earn a fair bit more than I did a year ago so I want to buy a different car for about £10k. I'm thinking a loan would be a better option this time around. My credit score is 650 now and it should increase a bit by the end of the month as I am settling a £110 default I just found from 2 years ago and I am paying off my old phone bill of £200 which was overdue. Other than those the only item on my credit report is the car finance with every payment being on time.

Does the car finance negatively affect how much I could be loaned? Also, I can't sell the car with outstanding finance on it can I? Seems like I'm stuck in a bit of a catch 22. I asked my bank for a quote to see how much they would lend me atm, but they said I have to apply online to get a decision. I don't want to leave footprints on my credit report so am unsure what to do.

powned

you cant sell a car if its on hire purchase but you can if its on a personal loan, the more debt you have the less affordable the banks will think it is for you... im having problems getting 7.5k loan at the moment. There is nothing you can do about the footprints sadly.. just be selective about where you apply.. i would be interested if anyone knows whos lending at the moment (dont try the AA, they refuse a lot of people)

jonesMUFCforever

powned wrote: »

you cant sell a car if its on hire purchase but you can if its on a personal loan, the more debt you have the less affordable the banks will think it is for you... im having problems getting 7.5k loan at the moment. There is nothing you can do about the footprints sadly.. just be selective about where you apply.. i would be interested if anyone knows whos lending at the moment (dont try the AA, they refuse a lot of people)

Believe it or not all the high street banks are lending to personal customers BUT they are being more selective as to whom and how much they lend.
Write down all your income and all outgoings - if income exceeds expenditure by more than the loan repayment you stand a good chance (with a clean credit file) if not the truth is that you cannot afford it.