Car Loans

Super_Ram

Hi everyone,

I wonder if anyone could help me.

I am currently looking for a car as I am moving into another role at my work which doesnt require a Company car that I have had so will be giving it back.

Now I have not really got any savings, bad as I know it is I have only recently realised I should start saving as I am wasting far too much money every month on socialising if I could call it that : )

Anyway it looks like I will be giving the car back end of april at the latest giving me 2 wage packets to likely be able to save a decent amount of cash to buy a run around.

In the meantime looking around I was enquiring just incase the car went back early of buying one end of this month with some deposit and getting finance on the rest.

Now I used to be in an IVA but I am far from that life and not in debt anymore however I know that any credit check done on me will fail as the IVA will overide anything else good I have going for me.

So I know from reading on here and past experience that normal loan companies will try and suck you in telling you they can get you money even if been in an IVA as they make money by saying send us £50 to process and will get back to you however you never hear or see that money again when get refused.

But I was speaking to a car place the other day and explained my situation and told them I was in an IVA before so my credit rating would be shot. However they still said come down as we have over 40 lending companies to help you. Noe my point is the 1st thing they will do is a credit check and it will refuse and end of story. However unlike a normal loan wher eby this time they would have taken £50 off you the car company wont have so how are they profiting from telling you to come down when they know an IVA will get refused

Cheers for any answers

Super_Ram

Anybody that can she dlight on this

Apples2

It is arguably much easier to obtain a car on finance as it is to obtain a loan.

This is because the finance is secured on the car, so they have something to grab back quickly if you fail to repay your commitments.

You can expect the interest rate to be huge, but if you are crazy enough to accept it, it is entirely feasible you will be accepted.

There won't be any up front fees but with a chequered history, you will likely see multiple searches on your file. Hopefully they will start with the finance company offering the best rates first, then drop down the pecking order until someone says yes. This could be some time and ironically, at each step down the ladder, your chances of being accepted get less, whilst the APR goes up.

It is likely to have an adverse effect on your chances of obtaining any other finance for maintstream goods as you will have so many searches against you.

Super_Ram

I realise now.

So of the 40 companies that they maybe have to ofer me finance one of them will get accepted as unlike a normal loan if I miss a payment or dont pay up they can take the car back.

Plus the likelyhood is if it shows an IVA the company that will likely accept me will be th eone with the terrible rates

BugsyBrowne

Super_Ram wrote: »

I realise now.

So of the 40 companies that they maybe have to ofer me finance one of them will get accepted as unlike a normal loan if I miss a payment or dont pay up they can take the car back.

Plus the likelyhood is if it shows an IVA the company that will likely accept me will be th eone with the terrible rates

You might be lucky that your IVA has only been included on one report.
Why don't check your credit reports Equifax & Experian they both do free trials.
Look through them and get back to us!!

Super_Ram

I have just checked Credit Expert(Experian) and Equilfax and onlyone lists my satisfied IVA

I have asked my bank the possibility of a loan and they refused so must be showing up to them

Anyone know of the sort of rates that are acceptable for Car finance to compare to what they would give me if got accepted

BugsyBrowne

Super_Ram wrote: »

I have just checked Credit Expert(Experian) and Equilfax and onlyone lists my satisfied IVA

I have asked my bank the possibility of a loan and they refused so must be showing up to them

Anyone know of the sort of rates that are acceptable for Car finance to compare to what they would give me if got accepted

Weird question,if you were accepted off your bank which you were not it would be most likely a lower rate than car finance.

A good car finance HP firm is a 5% fixed rate which is around 11%.

A dodgy supermarket one can be up to 27%

lawrie28

Why not speak to your work and see if you can make a small payment to them for use of the car for a couple of months to keep you moving? That will give you more time to save up to get something.

Super_Ram

Good idea lawrie28,

I didn't think of that as would only need a couple of months before I could save enough for a car

Thanks