Best way to obtain car finance

Flyinghigh91

Hey,

Im upgrading my current car this july, And im looking at financing a 2009 Ford Focus Titanium from either PolarFord or Thecarpeople or availblecar, I've been told car finance is relativly easy to obtain (due to the loan being secured on the vehicle), The average price of the ford focus i've come across from most dealers is around the £10000-£11000 mark, Which i'll be looking at paying off over 60 months, Based on this assumption, Do you guys think it will be pretty easy to get accepted for finance through blackhourse or santander,

Vehicle price £10500 Roughly
Deposit Will be £1000
Payment period 60months
Im 19 (subprime borrower?), I've been in my current job for nearliy 2 years, And ive been with my current bank for just under 3 years, I have had a slight problem in the past with a £150 cash loan i took out last year from greenwood where i missed several payments (collected from home) but i caught up with them and paid the loan off in the 33 week period, Agent decided to call onmy home when i was at work, not when i was at home as i agree'd with him, Not even sure if these have been recoreded on my credit file, And i earn roughly £970 a month after tax (Without overtime), And i've lived at my adress for the past 16 years, and im on the electroal roll

Cheers

Simon11

So roughly, you earn £16,000 and wish to borrow £11,000. Way too high against your income! No thought about costs of driving it either? I don't know much about car finance but it sounds like you're going to have a hard time getting any finance for that sort of amount.

Whats the reason for spending such a huge amount of a car who's value is going to plumet in 2-3 years? Think about the future as well- would you like to own your own place, have a nice wedding, nice holidays? You don't want to get into debt now, as it will hold you back later in life.


"Best way to obtain car finance "
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R0bert_Sterling

Have you began to think about how long 60 Months is??

Cast your mind back to when you were 14 years old.

From all that time ago, imagine EVERY SINGLE MONTH repaying this loan all through those years until now when you finally make the last payment.

Do you think you would have remained so pleased and happy with the same car for all that time???

paulmcerlean

Car finance is definitely not easy to get anymore. Used to be but lending £11000, secured on the car or not is not simple in today's world.

It will be easier to get than a personal loan but by no means will it just be 'EASY'.

Having any kind of missed payments on your file will make this problematic. And at your age, you'd need to be putting down quite a deposit id think.

Santander are a prime finance lender and will not lend to anyone they feel are a risk - Blackhorse Motor Finance, although slight more lenient are still classed as prime in the motor finance trade.

Both will search Experian only so check your file with creditexpert and see if it is clean - for a 10K+ loan, it will need to be.

no_more_cards_for_me

Hi,

I'm sorry to sound negative but you may not be able to secure finance that easy. You do have approximately a 10% deposit but 60 months is a very long time to be tied into car finance. Your 2009 ford will depreciate quickly and due to the length of term potentially you could be left with little (if any) equity in the car.

You say your a subprime borrower ?

How much have you budgeted for the car, its upkeep, road tax, insurance etc.

Personally I would avoid getting into such relatively "long term" debt on an asset that is hust going to depreciate.

I don't want to make assumptions about how you spend your current income or your lifestyle but please think carefully before you try to enter into this type of agreement. There was a similar post about "soon to be Barclays staff need a £10k car" that might have some useful information.

Alias_Omega

I would go with a small bank loan maybe £6,000 and go looking for "stolen recovered, no damage, HPI clear" cars.

Some good stuff out there, not recorded and far far less than full market price.

Coveredinbees!!!!

Even 6K would be daft, just don't do it, save your money and buy what you can afford or at least save half and borrow the other half!

drbesty

You're 19, the insurance on any car is going to be insane, do what everyone else with any sense does at the age, buy a sub £2k car and build up some no claims bonus

Jon_B_2

Besides if you're gonna spend 10k on a car, at least get something exciting. I can't imagine you have any kids with such disposable income on a low wage, so why a family hatchback. :S

+1 on the insurance, i'm 22 and my insurance is £85/month.

Sunnyday

If you do decide to go ahead why not do it through a bank instead.

I was so glad when my Black Horse agreement ended, i tried to get a settlement figure to pay it off early and save some interest but they have things in place now where you can still do this but the interest reduction is pants. It would have saved me less than £30 so i had the loan around my neck for ages.

If i had done my homework properly and joined this site before going ahead with the loan i would never have even considered them but would have gone through my bank instead and saved quite a lot.

My bank even went through the figures with me afterwards and the difference was quite a lot, the apr was lower and the repayments were reflected by this - the term was also less, in short i was gutted but it was my own fault.

You live and learn.

SD

drbesty

Agreed if you're gonna blow 10k on a car at least by something fun, how about a BMW M3?