Car Finance - am I likely to be accepted?

econthought · 10 March 2011 at 9:02PM

So I'm just about to graduate from university at the age of 22 and will be working on a self employed basis from the middle of May. - This requires me to get a reliable car.

I've worked out that I want to spend about £7k on a car however this has so far brought up problems - no one will accept a loan application from me (I haven't actually applied - I Just asked the right questions to avoid extra credit searches for me) - so this unfortunately looks like I'll be stuck with the higher rates that a car dealer will offer me.

Now I have a perfect credit history, no late payments ever and a credit score of 999 on Experian. The question is, if I cannot get a loan, am I likely to be able to get car finance from Ford or Vauxhall - and with a credit score like mine, am I likely to be able to get a good rate?

Thanks for all of your help in advance

PNPSUKNET · 10 March 2011 at 9:16PM

the problem is new self employment, they will require a few years accounts. Be better to get a banger for say a year first.

econthought · 10 March 2011 at 9:19PM

PNPSUKNET wrote: »

the problem is new self employment, they will require a few years accounts. Be better to get a banger for say a year first.

Yes, but will this be an issue if the garage only need to see a utility bill and my drivers license to set up the finance? - A banger isn't really an option with the number of miles that I need to do.

CHR15 · 10 March 2011 at 10:06PM

Do you have any mechanism to meet the repayments on a loan?

I don't mean a desire for an income from the middle of May, I mean an ability to demonstrate to a lender you can make repayments right now

econthought · 10 March 2011 at 10:09PM

CHR15 wrote: »

Do you have any mechanism to meet the repayments on a loan?

I don't mean a desire for an income from the middle of May, I mean an ability to demonstrate to a lender you can make repayments right now

Sure. Earnings of approx £450 a month at the moment (as a student), no overheads (living at home), an untouched overdraft with £1500 limit and a credit card with a £200 balance and a £4000 limit.

lawrie28 · 10 March 2011 at 10:21PM

WHo do you bank with?
And who will you have the business account with?
Are you still living at home?

econthought · 10 March 2011 at 10:22PM

lawrie28 wrote: »

WHo do you bank with?
And who will you have the business account with?

Lloyds for both. Already spoken to them about it and they won't give me a loan due to lack of payslips/earnings history.
Yes - still living at home.

lawrie28 · 10 March 2011 at 10:46PM

sent you a PM.

PNPSUKNET · 11 March 2011 at 7:39AM

If lloyds wont, and them been your bank I dont think you will pass car finance. They are likely also to ask for the last 3 months pay slips

standupguy · 11 March 2011 at 9:52AM

The best way to get finance given your current circumstances is to offer a joint hirer to the agreement.

The obvious and best choice would be a parent living at the same address.

This gives the Finance company the comfort of having a presumably better credit profile and someone they can turn to if you can't pay

smitchy73 · 11 March 2011 at 11:28AM

You could also look at a short term lease, plenty of companies offer these. This will get you on your feet for the first few months, plus if you have high mileage and you tell them this thye can set the payments for this fact, plus you should be able to get a fully maintaned package for this, where if you need services this would also be included.