Car finance

giddingsno1

Hello All,

I am thinking of taking out car finance for about 10k but I am scared of rejection...

Having looked at my experian report, it looks ok - everything up to date but there was a default on there which dates back to 2005 but this has been 'satisfied' since.

I have a mortgage (not sure if that makes any difference but thought it best if I state what I have!!).

So what is the possibility of me getting the car finance ??

Tixy

The default won't help, but as its 5years old and satisfied then its not so bad as a recent unsatisfied default.

giddingsno1 wrote: »

So what is the possibility of me getting the car finance ??

Can't say from that amount of information.
What debts do you have? what unused credit do you have? are you employed/self-employed/unemployed/other? how much do you earn?

If you want to get finance from a dealer secured on the car you are more likely to be successful than if you just try to get an unsecured loan for that amount.

giddingsno1

Thanks for the reply.

Experian are saying that I have 41% left of credit and only £680 in debt (excluding my joint mortgage), does this help?

giddingsno1

sorry forgot to add that I am in full time employed and have been with the same company for aprrox 9 years, my salary is around 20k plus a few grand a year bonus.. thanks

Beast

Its more likely to be the fact that you're asking to borrow 50% of your pre-tax income which will lead to rejection.

This is a big commitment in comparison to your income.

CHR15

£10k is a ridiculous figure to spend on a car with a Mortgage and such low earnings.

You should be looking at £5k max for a car.

inmypocketnottheirs

Note the two above posts. These are based on common sense.

no_more_cards_for_me

CHR15 wrote: »

£10k is a ridiculous figure to spend on a car with a Mortgage and such low earnings.

You should be looking at £5k max for a car.

I have to say that I agree, £10k on a car is OTT when your salary is £20k. Good cars are easy to pick up nowadays and no need to spend more than £5k. A car is just going to depreciate and your lose value. Somebody on one of the boards once said "never borrow on a depreciating asset" - which I think is quite good.

I assume the OP has no savings or part ex - they don't say ??

giddingsno1

To answer the question on why I am spending so much..its because its for my husband whom earns at least 50k per year but his credit report is worse than mine because he has late payments etc so I now look after all the money.

Beast

The challenge is that, unless you're applying for a joint loan, only your income will be taken into consideration and £10k is 50% of your gross income.

WTTM

giddingsno1 wrote: »

To answer the question on why I am spending so much..its because its for my husband whom earns at least 50k per year but his credit report is worse than mine because he has late payments etc so I now look after all the money.

If he earns that much and needs to borrow £10k to buy a car then something ain't right.

Buy him a calculator and budget tool instead.


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