Personal Loan Vs Dealership Finance

creditsurfer

Hi all, I am new to this so to start off i apologise if this is a re-post but i wasn't having any luck with the search function.

My question is as it is in the thread title but i want to give you some of my financial history just as a matter of course for the more seasoned money wizards to get a better understanding of the sort of borrower i am.

I was 18 when i thought a store card from topman was a good idea. i filled in the form at the counter, (no mention of insurance at all but i am paying PPI, currently in the middle of reclaiming) and went on my merry way. One thing lead to another and i started to miss payments with a whopping 34% APR my payments were barely covering the interest alone. i was in trouble and after 5 late payments and a letter of default i fessed up to them that i was in trouble and pulled my head out of the sand. i know i was young and silly. I was, at the time unemployed but had plenty of money after some inheritance but that soon reduced to nothing. eventually i found myself working for a company on a free-lance basis so was self-employed for 14months. i started to pay my debt back which had amounted to £740 on a £500 limit.

As it stands now i made the final payment on the card last month and it has been updated on my credit rating (callcredit) my score is 685 (average).

Now to get on topic. I want a personal loan to fund a motorbike purchase. I am in full employment and have steady income of £15,000 per anum. still living at home with minimal outgoings, of about £100 per month in total. employed for 4 months continuously, however with a default on my credit rating within the past 2 years i dont know if i am to be succesfull.

I read that its better to apply for worse deals if you have a dodgy history so based on that should i opt for dealer finance? also, would there be more chance of getting accepted with a finance company if the debt is secured on the vehicle? that way the creditor has somewhat of a guarantee to get their money back? is this accurate?

i apologise for the long winded post but i am a little stuck as where to start. my finances are all in order with everything up to date. would a guarantor guarantee me a loan? is a default bad enough to get me rejected. i dont want to apply if i'm not successful and i would like to get it right first time if possible.

THANKS IN ADVANCE,

CS

CLAPTON

you take home about 1000 a month
you pay 100 at home
that leaves 900

where does it go?
save up and buy the motorbike when you have the money

I know nothing of motorbikes but one can buy a car for 1,000 so I would guess a bike would be cheaper.

and a default is very serious and no responsible lender would consider you at the moment.

creditsurfer

cheaper yes but as reliable? no!
I already put 300 a month into a cash ISA. and this is for my annual holiday fund. the rest i use as my disposable income for a typical 21 year old.

Will i be given a loan if i had a credible guarantor?
Will i be given more chance of a loan through dealership finance as the debt is secured against the vehicle.

What is the best way to go about this without having to save up for a year and a day? i want a motorbike because they are far more affordable than cars. in every aspect! insurance, petrol, tax. its all cheaper on 2 wheels.