loan / finance difference

bexyboo1312

Hi
I have finance on my car and applied for a loan to pay it off , so i can sell the car private and buy a different car. I got refused for the loan ~(despite having an excellent rating/score etc) due to my outstanding debt....credit report shows I owe £8800 on the car (it is only £6500 due to interest etc)....I am a bit annoyed as I would be settling that, it isn't any extra debt as such.

However if I apply for finance on another car, instead of a loan - am I more likely to be accepted ...I am worried now I have applied for a loan and that search is on myfile, that I won't be able to get finance.
Thanks

Tubbss

hi,

what is your question as the above is just a statement?

bexyboo1312

However if I apply for finance on another car, instead of a loan - am I more likely to be accepted < insert ?

bexyboo1312

However if I apply for finance on another car, instead of a loan - am I more likely to be accepted < insert ?

zppp

bexyboo1312 wrote: »

However if I apply for finance on another car, instead of a loan - am I more likely to be accepted < insert ?

Well there is a possibility given the finance would be secured against the vehicle, so the lender has more surety. What was the reason for the decline for the loan application do you know?

Tubbss

Hi

I dont think applying for a new HP agreement would make any difference as you are already paying £X per month for your existing car and this will be on your credit file. You then want to apply for a credit facility to pay £X per month in addition to your current obligations. If by chance you did get accepted for finance on the 2nd car what would you do with the 1st car. You would not be allowed to sell it as it is subject to an HP agreement and is not yours to sell until paid for in full. One or two searches in a relatively short period of time should not cause too much of a problem on your credit file, but you need to take a step back and look at your circumstances - can you afford to pay for 2 HP agreements!

CLAPTON

what's your salary
what are your total debts

bexyboo1312

I won't be paying for two hp payments, i originally wanted to get the loan immediately pay off the finance then sell the car, which would give me the cash to buy a new one. I got refused the loan , so am now looking at trading it in against another car from a dealer and having a new agreement on the new car

Tubbss

Hi
Sorry to say this, but in my opinion, you have no chance of the dealer been able to pay the £6k+ settlement to the original finance company and then building this amount into an HP agreement. This would mean financing for far more than the car you wish to purchase is valued at and no finance company would finance say £14k on an £8k asset.

How long have you had the existing agreement for? have you reached the point at which you can VT yet?

bexyboo1312

what? I am confused...i would sell the car to the dealer who would pay my £6300 settlement....and i would then take out finance on the new car from them for £6k....thats what usually happens when part exing a car in on finance ....
I just want to know if they look at finance differently to loans - for the loan i had to put in what i earn , my outgoings etc but when i originally got finance they only wanted to know my address, employer and that was it, it went through

bexyboo1312

what is VT? I am only 6 months into 3 yr agreement