Car finance

Brydson86

Hi folks

First time member, recently joining as i have heard many things about the great advice.

My problem is that I have been rejected car finance. Looking to trade my old car at 3.5k and buy a new used car 4.3k. I do still owe 6.8k on the car I am trading however the thing is killing me every month for insurance and petrol, so I thought I would get rid. My payments are 189 a month and buying the new used car, the payments were looking at 246 a month. Today, the salesman had phoned to tell me he is struggling to finance the car due to the payments rising.

I am just looking for any help that can ease my crippling car debt. Tried to phone my Barclays who take my finance however they cant discuss the decision and stated I would have to put it in writing.

Any help is greatly appreciated. :beer:

CLAPTON

how much do you spend in insurance and how much in petrol
how much would the new car save you?
how much do you need to borow
how much do you earn
what other debts do you have
what do your credit files say about you

Brydson86

CLAPTON wrote: »

how much do you spend in insurance and how much in petrol
how much would the new car save you?
how much do you need to borow
how much do you earn
what other debts do you have
what do your credit files say about you

Insurance is 88 a month, upon changing my new car it went down to 55. I spend min 150 a month on petrol with the car getting me around 35mpg. New car is a deisel with consumption on average 55mpg.

I earn 1500 a month. Other debts being a credit card at 2.2k.

I do not know about my credit files.

Thanks.

CLAPTON

if I understand correctly

you will save 88-55 = 33 insurance pm

and maybe save 150 - 150 x35/55 = 150-95 = 55 pm in petrol assuming you can average 55mpg in the new car

so savings will be about 88 pm

against this you will pay more loan payments of 246 - 189 = 57

so overall net saving of 88-57 = £33 which while useful doesn't of itself seem a tremendous amount


it might be better to consider your overall financial position and see what other economics you can make and try to pay off the CC debt which presumably has quite a high APR

this is a good budgeting tool which might help

http://www.makesenseofcards.com/soacalc.html

maybe post up the results either here or on the debt free wannabe board as see whether people can make any useful suggestions for money saving

Brydson86

Thank you Clapton for the help. I have not delved much into my financial background however I believe the car is at the centre fold of my poor finance.

The salesman today mentioned getting a personal loan to finance the new car, I presume he means paying the full whack off my car and then using the car to pay for the new used car. However, having failed to get finance then how would I be able to get a personal loan?

I dont know, also, if going for a car with the same value will help me to get finance on a car?

Any further help is obliged. Been a frustrating day. :beer:

KingElvis

You're right, a decent personal loan is far harder to secure than car finance, I would probably just forget it if I was you.

Aside from the miniscule saving that Clapton has pointed out, all the faff of changing insurance, taxing the other car and other expenses will just leave you out of pocket.

If a used car salesmen says he can't get you finance, it's pretty safe to assume you're not getting it from anywhere.