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Car Finance and the trouble with!
IngorantUntillOtherwise
Posts: 1 Newbie
in Loans
Hi guys, Ive got some questions and queries about a few things, that I cant seem to get the information I need myself, and wonder if you could help?
The story goes, last week I had a crash, where I was hit from the side by another driver, we were ok.... my car unfortunately not so good!
The long and short of it is, that the garage have been given the go ahead to repair, but really it should he been written off in their eyes aparently! Anyway, ive decided that I am going to trade the car in once repairs are complete, even though, we have only had it since May. Now this is where I need some help....bare with me!!
The car finance for our current car(damaged one) is in my girlfriends name, and we have negative equity of £6,800. I was offerd around £5000 trade in on the car, when repairs are complete, meaning roughly negative euity of around £1,800. Due to the fact the repairs were being done at AC, when I visited an AC branch about the new car, they gave me a deal....
So we tried this first deal, here it goes......
We were given £5000 for the car, and the new car was £10,499, and our negative equity of £1,800 makes around £12,400ish in total... Now last time we did the credit, the loan type was a normal car finance... I noticed that this time it was a personal loan?. Now due to the fact that my partner holds a Provisional licence, that limited choice of finance, then further the negative equity, so in all we were left with 1 or 2 finance companies who were eligable, all looked into by arnold clark reps.. We were declined for that particular deal..
Some extra info, I hold a full-uk licence, but have bad credit, I dont know how bad, but I dont fancy paying experian to find out!! I kind of think its pretty bad, due to all other things being in my name.... My partners credit rating with experian is 808.
Now where I need your expert advice is for these;
What is the best way for me t o proceed with this? Im told that due to the negative equity that the finance companies hadle it as a personal loan, which Id image is harder to get?? No security on vehical??
Im wondering if I should try in my name with my partner as a garantuer? Or possibly a joint?? I definately have bad credit, but dont know if this is something that still can be done? Im also wondering about the implications of having the 2 cars for a month or so. The salesman seemd to think, that he could sell us the car on normal finacne with no trade in, and would go through easily...but Id have 2 cars, and have to pay the old one of with a personal loan or something??
Would it be the case that, if I payed the £1,800 euity on the origal deal at the same time as trade in, the garage could put the new car through as a straight sale for its amount?? would that then mean the car is on a normal finance deal. It would sort of have to be like the garage were buying my car, and adding my 1800 to their 5000, paying of my original deal, then going for the new car from scratch?? so confused lol, its murder!!haha What if the finacne failed, but id sold my car....doh!!
Im pretty confused tbh, and your help would be much appreciated. Its more difficult becuase I dont want to apply for anything further untill I know what im doing, as it can affect my partners or my credit.
Anyway guys, I hope I have not rated to much, and have enough info to get started. Thanks in advance people..:p
Jamie
The story goes, last week I had a crash, where I was hit from the side by another driver, we were ok.... my car unfortunately not so good!
The long and short of it is, that the garage have been given the go ahead to repair, but really it should he been written off in their eyes aparently! Anyway, ive decided that I am going to trade the car in once repairs are complete, even though, we have only had it since May. Now this is where I need some help....bare with me!!The car finance for our current car(damaged one) is in my girlfriends name, and we have negative equity of £6,800. I was offerd around £5000 trade in on the car, when repairs are complete, meaning roughly negative euity of around £1,800. Due to the fact the repairs were being done at AC, when I visited an AC branch about the new car, they gave me a deal....
So we tried this first deal, here it goes......
We were given £5000 for the car, and the new car was £10,499, and our negative equity of £1,800 makes around £12,400ish in total... Now last time we did the credit, the loan type was a normal car finance... I noticed that this time it was a personal loan?. Now due to the fact that my partner holds a Provisional licence, that limited choice of finance, then further the negative equity, so in all we were left with 1 or 2 finance companies who were eligable, all looked into by arnold clark reps.. We were declined for that particular deal..
Some extra info, I hold a full-uk licence, but have bad credit, I dont know how bad, but I dont fancy paying experian to find out!! I kind of think its pretty bad, due to all other things being in my name.... My partners credit rating with experian is 808.
Now where I need your expert advice is for these;
What is the best way for me t o proceed with this? Im told that due to the negative equity that the finance companies hadle it as a personal loan, which Id image is harder to get?? No security on vehical??
Im wondering if I should try in my name with my partner as a garantuer? Or possibly a joint?? I definately have bad credit, but dont know if this is something that still can be done? Im also wondering about the implications of having the 2 cars for a month or so. The salesman seemd to think, that he could sell us the car on normal finacne with no trade in, and would go through easily...but Id have 2 cars, and have to pay the old one of with a personal loan or something??
Would it be the case that, if I payed the £1,800 euity on the origal deal at the same time as trade in, the garage could put the new car through as a straight sale for its amount?? would that then mean the car is on a normal finance deal. It would sort of have to be like the garage were buying my car, and adding my 1800 to their 5000, paying of my original deal, then going for the new car from scratch??
so confused lol, its murder!!haha What if the finacne failed, but id sold my car....doh!!Im pretty confused tbh, and your help would be much appreciated. Its more difficult becuase I dont want to apply for anything further untill I know what im doing, as it can affect my partners or my credit.
Anyway guys, I hope I have not rated to much, and have enough info to get started. Thanks in advance people..:p
Jamie
0
Comments
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find out what your credit records say... the statutory report costs £2 for each of the three agencies (£6 in total )
joint loans will trash your OH credit record if indeed yours is trashed
guarantor loan makes no sense whatsoever.0 -
why do you want to change the car already? keep it for a few more years. if you change it now then you will be paying more to borrow the negative equity, they'll put it as a personal loan rather than a HP (Hire Purchase) and that way you will lose a lot of rights.We've spent decades teaching people about their rights, but nothing about their responsibilities.0
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You can get a free trial with both experian and equifax for 30 days. You need to find out just how bad your credit is before going to apply for any more.Total 'Failed Business' Debt £29,043
Que sera, sera.
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oh dear, at the moment you owe £6,800 which is reasonable for a car and you are looking to almost double that on a car you have only had for 3 months. it would probably be better just to hang on to the car a wee while longer
incedentily, dont believe the salesmans patter about how it would be ok to have the 2 cars etc etc and treat the new car as a seperate issue, the key is in his job description, all he is looking for is his next sale0
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