Please help - Car Finance

gonzales

Hi I'm new to the forum and was wondering if anyone could advise me on car finance.
I have been with a debt management plan for three years now (Payplan) They have been great and helped tremendously. However our car has now given up the ghost and we need to buy a new one urgently. Our credit rating is zilch with two CCJ's. Going forward we do have money available to repay finance but will find it difficult to obtain with such a poor rating. PP cannot offer any advice other than take out a loan through a family member or friend;not really an option. Can anyone suggest the best way to buy new or secondhand, though second hand would no doubt be cheaper. I just want to find out how to purchase preferably without going to a company who offers credit for people with bad credit ratings at a 35% interest rate.
Thanks

Lemonade_Pockets

I'm not insurance underwritter but generally speaking if you have bad credit history then you are going to end up with a company that charges more interest than i prime lender would. Its a sliding scale, normally the worse your history the worse your rate as its simply down to percieved risk. So the short answer is you won't be able to avoid it.
Like any finance though its a competitive market so shop around as some maybe cheaper than others. But from the sounds of it your looking at double figures for your APR.

Secondly i would really consider if you could manage running around in a banger for £500. Buying a car on subprime finance is a usually a one way ticket to negative equity which ultimately won't help your credit score.

rev_henry

I'd second buying an old car for £500 or so. Maintained properly you can get years and years out of good ones.

BenL

Isn't there a condition of having these payment plans that you do not agree to taking any more credit out at all?

gonzales

Thanks for your replies.
I thought it was a condition of a DMP that no further credit was taken out too. However when I contacted PP they asked if I had HP on my current car which I don't, they then suggested a loan. At the moment my partner commutes to work by train and the money spent on this could go towards funding a loan for a car.