Loan for new (used) car - help please!!

Lucas6

Hello all

My partner is in a bit of a predicament. We have recently moved house for the third time in 18 months, and we should be settling this time around. However, during the process, our letting agent advised that we had both failed credit checks. We are both 22, have never needed any credit cards etc and both have good jobs with salaries. We have since sorted it out, and moved in last Monday.

At the weekend, my partner and I went looking for a new car for her at the local used car garage - she currently has an N-reg Fiesta which she is quite tired with and needs a change. We settled on a 52-reg 1.4 Fiesta Zetec, which was £3495. The garage owner agreed to give £300 part exchange on the old Fiesta, £200 deposit and then the balance over 36 months with around 7-8% APR - working out to £109.10 a month.

As it was a Saturday, the credit check couldn't go through then, so we have had to wait until today for confirmation. However, the garage has called to say that finance has been declined and that they are unable to go through her bank (which they originally said they could). She is now devastated and extremely upset, feeling that she will never get any credit for anything in the future.

She banks with Barclays (recently moved from Halifax due to her student account expiring).

Are there any similar alternatives that would be easily sorted out for a 22-year old (with supposedly no credit) to enable us to get this car?

Thanks for your help.
Luke

clarence83_2

Lucas6 wrote: »

she currently has an N-reg Fiesta which she is quite tired with and needs a change.

She doesn't need one, she just wants one. The only solution is to save up I am afraid!

Rafter

Luke,

First thing is to get hold of a copy of your credit report from experian or equifax and check it is accurate.

You also need to get yourself on the electoral roll for your new house.

Lots of things are counting against you though.... your age, time at current address, time at current bank etc etc etc.

You may just have to wait a few months for things to settle down and then try again.

£3,500 seems a lot for a 7 year old fiesta too - parkers are suggesting £500 less - you might have been saved from making an expensive mistake!

Good luck

R.

dezire1971

Luke mate - Just save up for it. It's something she doesn't need. If it were me I would sell the existing car on Ebay then plough about 500 into upgrading the car to something nice. BTW - 3500 sounds a lot that fiesta! Look around and you could get something like a 2001/2 VW polo for 2K! Much nicer!

Inactive

clarence83 wrote: »

She doesn't need one, she just wants one. The only solution is to save up I am afraid!

Agreed, it amazes me how often the word " need " get's misused these days.

£3495 is an awful amount for a 7 year old Fiesta, it probably didn't cost that much when it was new.

dezire1971

http://cgi.ebay.co.uk/2001-VOLKSWAGEN-POLO-MATCH-BLUE_W0QQitemZ170375215813QQcmdZViewItemQQptZAutomobiles_UK?hash=item27ab277ac5&_trksid=p3286.c0.m14

A nice looking Polo for £1500!! 2001 plate. There is even a 'make me an offer' on it. I hope this helps. Avoid a loan for a car mate.

CLAPTON

Also you will find that the loan works out at over 16%APR... car salesmen just love quoting 'flat rate' percentages.


Save first then spend.... just keep it simple.

standupguy

Finance companies do not always decline deals on the strength or otherwise of the applicants.

They also take into account the loan amount compared to the trade value of the car and prefer to lend no more than the trade value.

For some reason this car is highly overpriced and has a trade value of under £2000. You should be paying no more than £2500!

I suspect the high amount of loan required compared to the actual value of the vehicle may have had a lot to do with it?

barclaysguy

how long has she had the fiesta for, she may be able to get a brand new cheapy for a little bit more and spread the finance over longer - if she feels the need for a new car that is. She could ask her parents to be guarantors if there credit worthy, something that happens a lot in the car finance world.