Hire purchase questions

Ad_87

Hi folks, just a couple of questions.. I'm looking to get hire purchase on a used car from a dealer and have paid off any finance i've already got and am currently waiting for them to clear off my credit report. My score at the minute is 894 and i'm expecting this to go up when the accounts register as settled and closed on my report.

I'm just wondering how financers decide if you're eligible.. Do they go off the score alone? I've missed no payments in years.

Can they check what you've got going out of your bank account already? Such as rent and bills e.t.c? Or is it just solely the score and report?

Last but not least, if i take the car out on hp, have i got the option to pay more than the stated payment each month? I wouldn't mind making the odd extra payment e.t.c.

Thanks for your time,

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DarnIt_3

Whether you get finance is based upon your income, your previous credit history...ie do you pay on time, have you got CCJ's defaults etc, and whether you have any history. This combined with your credit score will give your lenders a decision on whether you are a credible customer.

In relation to can you pay extra payments, I believe they recommend that you put the extra money into savings account, gain a little bit of interest and when you have enough to make a full and final payment then do this, paying off little by little is not something which they normally recommend. (I only know this from car finance my OH got eight years ago)

Ad_87

Cheers for that. Do they check your bank account? What you've already got going out?

Thanks again,

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DarnIt_3

No they don't check your bank account so to speak, but your credit report will have details of your bank account, I believe it holds details which although potential creditors cannot see they give you an allowance of credit available based on what goes in to your account.

The car company may ask for wage slips too.

chanz4

we took dealer finance out, they didnt even ask how much income

pvt

DarnIt wrote: »

No they don't check your bank account so to speak, but your credit report will have details of your bank account, I believe it holds details which although potential creditors cannot see they give you an allowance of credit available based on what goes in to your account.

The car company may ask for wage slips too.

Your credit file will not show how much money goes into your bank current account. And your credit file does not even have a record of existence of savings or deposit accounts that your salary could be paid into! The only thing it will show is your current account overdraft limit, and the balance IF it is overdrawn. If the balance is positive, then the CRA file will show a balance of "0".

If a lender needs evidence of income then, as DarnIt says, they will ask for copies of recent pay slips.

blacksta

Most car finance are not interested in your earnings - All they are interested in is HOOKing you to a bondage PCP or HP Contract ( Remember the finance company pays them upfront). A friend of mine recently picked up a brand new Landrover discovery - Special edition and he was shocked at the little or none emphasis placed on salary. Is there now way you could buy a car without finance. We have had so many threads on how people are trying to get out of this bondage car contracts two years down the line.