Car Finance (HP)

Mogues_1991

Hey,

Im looking into buying my next car, I've been interested in buying a 2006 or 2007 Ford Focus zetec, I've come across one i like at £6995, The only real way i could afford this is via a hire purchase agreement, Im looking at putting down a £500 deposit, Then paying the sum off over 42 months, This comes to around £198 a month (Easily affordable), However, Reading up on hire purchase i've read the chances of acceptence is higher because the loan is secured on the vehicle, Therefore lenders feel there is less risk involed, Is this true ? I want to apply for finance, But i dont want to put a bad mark on my credit rating, I've been in employment for 1 year and 2 months, And i've got 2 jobs, i earn roughly £1000 a month after tax, I have no monthly expenses appart from the £180 a month i pay towards rent, Before i apply, someone mentioned getting a credit builder credit card as i have never taken out credit in the past, To make a few smaller purchases on that, Pay them off in full a day or two afterwards, Is this a good idea ? Or might i just be better off applying for hire purchase and hoping for the best ? Does anyone have any tips when it comes to Car finance ?

Thanks

Kindest Regards

Mike.

CLAPTON

better to save up for things you want rather than spend loads on interest to finance companies
I dont know you full circumstances but
you have 1000 a month less 180 for rent which leaves 820 ... allowing a couple of hundred for general living that means you should be saving at least 500 per month
or you say you can easily afford 198 pm ... have you been saving that
if so just use what you have already saved to buy whatever you can affford... and dont forget the cost of insurance tax, repairs etc.
assuming you are young and living at home the last thing you need is a burden of 200 pm hanging around for 3-4 years..suppose you want to move out etc.
save then spend..keep life simply

gedebage

When I moved to the UK from Australia a couple of years ago I had no credit history here. I managed to get a mobile phone contract and about 3 months after that I bought a car for £8000 on HP, I paid £1000 deposit and was accepted by Blackhorse Finance, so based on that I don't think you will have a problem.

Cash_Flow

gedebage wrote: »

When I moved to the UK from Australia a couple of years ago I had no credit history here. I managed to get a mobile phone contract and about 3 months after that I bought a car for £8000 on HP, I paid £1000 deposit and was accepted by Blackhorse Finance, so based on that I don't think you will have a problem.

Back in 2007 there was no CREDIT crunch:D