Car loan situation...........

bearne1

........hi all.

I have traded in my own vehicle with a local garage (reputable garage est. for many years) as a holding deposit until 1/07/09.

The garage unfortunately do not have a Consumer Credit License which they need before I can get any finance to fund the balance (just under £5k). They have applied for one as held one before but this ran out in August 2008.

Do I have any other options to finance the vehicle? I am not too keen on borrowing against my house and unlikely to get an unsecured loan due to a fair / poor credit rating.

I am able to pay the loan off towards the end of this year, the car I have found is more of an investment as it is a rare model with very low mileage (my current car would have lost too much money to warrant keeping it).

Any help greatly appreciated.

Many Thanks

posted_2

Few cars are investments.

ILW

posted wrote: »

Few cars are investments.

It might be a mint condition E type Jaguar for £5000. That would be an investment. Doubt it though.

standupguy

Not sure what you mean by traded in?

If you are saying that you have surrendered your car to a dealer on the basis of a deposit and you are not planning to collect the next car until 1/7/09 then you are taking a mighty big risk.

Dealers do sell cars they do not have title to and if this dealer decides to sell your car and then goes bust you have lost the value of the car.

Not having a consumer credit licence is another warning sign - retail car sales without provding finance is not really a proper business.
There may be more sinister reasons why this dealer does not hold a licence.

If the above is correct - best to walk away.

If not, you could try and approach a HP company direct (perhaps one you have dealt with before) and see if they are willing to use their CCL and sign you up on their premises - it is a long shot though and you may find their policies or systems do not allow them to do that

bearne1

Thanks for the replies - I am aware that cars are not the best investments but the car I have found will hold its value far better than the one I have surrendered.

I know the garage and its owner very well hence the consequences of them going bust is my risk, they have been present for over 20 years however so I am sure I will be ok.

Not sure where to go from here as want to get this sorted asap.

Many Thanks

bearne1

Any other options?

Thanks

Apples2

Sorry I can't offer any advice but just out of pure nosiness.... what type of car is it??

I doubt anyone is going to go searching it out to Gazump you :)

evilgoose

Whenever I've bought a car with finace through the garage - as far as I can recall, its never been the garage directly who the finance is with, its usuall a seperate finance company. So I would assume that you would probably hit the same hurdles getting finance through the garage/it's finance scheme (when/if) they get their license. Have a look on somewhere like www.moneysupermarket.com and do a search for unsecured loans. good luck - and I must admit - I curious, what car it is?

bearne1

Renault Clio 182 Trophy (only 500 made) - only has 1k on the clock which is very low for the age of the car.

Thanks for the info, may have to explore another avenue!

bearne1

No CCJ's / major bad debt and mortgage been paid for over 3 years with no missed payments and my credit score has come out at 317!

Any ideas on any possible unsecured loan with such a low rating?

Thanks

bearne1

Point taken but I am being made redundant towards the end of this year and will be sticking locally rather than a long haul to work.

Thanks