Car finance with poor credit history

Cafybooboo

I'm looking for advice on car credit. I took out a PPP on a new car in 2007 over 3 years. In that 3 years my partner and I experienced financial difficulties which resulted in us having to have a debt management plan set up. We pay an agreed amount of debt each month although it is below minimum payment, so this has given us a poor credit record.

Last year our finance agreement came to an end and so we asked for the outstanding amount owed on the car to be re-financed over 2years and we were accepted for it. We have never missed any payments with this company.

What I want to know is would this company be likely to finance us again if we tried to buy another car? As our car is high milage and small for our growing family we ideally need a larger car.

Any comments would be greatly appreciated.....I'm new to this!

atrixblue.-MFR-.

Cafybooboo wrote: »

I'm looking for advice on car credit. I took out a PPP on a new car in 2007 over 3 years. In that 3 years my partner and I experienced financial difficulties which resulted in us having to have a debt management plan set up. We pay an agreed amount of debt each month although it is below minimum payment, so this has given us a poor credit record.

Last year our finance agreement came to an end and so we asked for the outstanding amount owed on the car to be re-financed over 2years and we were accepted for it. We have never missed any payments with this company.

What I want to know is would this company be likely to finance us again if we tried to buy another car? As our car is high milage and small for our growing family we ideally need a larger car.

Any comments would be greatly appreciated.....I'm new to this!

you probably would be accepted, but you would pay a higher APR as your CR is a bit damaged and may not be accpeted on certain deals like 0% interest.

needing a larger family car comes with bigger price tags, and bigger the finance bill i would search and get figures and make sure that IF anything repeated itself in the future would you be able to carry forward payments if they were reduced under agreement as the repayments will be higher than what youve previously paid. at this moment i would get figures only, perhaps part ex your car when youve fully purchased and saved a bit to reduce your overall finance bill on the next.

you really should go up to laons and ask youd get more help there.

bigjl

I would think that you may be better waiting until you have fully paid back the debt arrangment, you may well get more finance, but do you really think you need a new car, or has nearly playing the finance off have more to do with the need for a bigger car?

I would advise sitting tight, put the say an extra £150 into a saving account every month fo 6 months, this will let you know if you can actually afford to pay for a larger car with higher running costs.

If this all goes fine, then by the time you finish the finance agreement you will have a nice chunk of deposit,a car fully paid off to px and firm knowledge of how much you can afford to budget on your car.

If however you find you can't put this extra monry to one side you will not have harmed your credit record and you can then reorganise your finances so that in a year or so you can afford to upgrade to an new car.

In these uncertain times I wouldn't advise abybody to finance, especially as you will almost certainly get a crap interest rate, as mentioned above.

wba31

I agree with the previous post, you're in financial difficulty, hence the DMP (are you doing that with someone who doesnt charge by the way??) do you really want to be taking out further credit? how much is the current car worth? If you really NEED a bigger car, can you not sell the current one once the HP is paid, and then buy a replacement simply out of what you sell it for?

atrixblue.-MFR-.

this thread should really be up in LOANS.

Flyboy152

It was, but the OP seems to be treated better here and is getting far more constructive advice than they were in Loans.

Inactive

Flyboy152 wrote: »

It was, but the OP seems to be treated better here and is getting far more constructive advice than they were in Loans.

Indeed, waste of time posting anything there.;)

Cafybooboo

Thanks for all the advice, think we will try and hold off till car is paid off in full next April

Hammyman

That would be the sensible option.

bigjl

Cafybooboo wrote: »

Thanks for all the advice, think we will try and hold off till car is paid off in full next April

Try what i suggested, i have suggested it to several mates and they have either found out that they could afford a new car and then bought one a few months later with a decent deposit or were glad they didn't commit themselves then spent what they had saved up paying off some unexpected bills.

Inactive

Cafybooboo wrote: »

Thanks for all the advice, think we will try and hold off till car is paid off in full next April

A wise decision.;)