Car Finance from a Dealer

vindicated

Hey Folks,

Was just wondering if anyone knew the likelyhood of getting a car on hire purchase/finance through a dealership?

Declared bankrupt Dec 2008 and Discharged Dec 2009 - just recently got a vanquis and full current account so i dont know if that is any indication?

I dont really want to go into the showroom and be mortified if it is declined but i guess it cant be done online!

Has anyone had any experience of getting car finance post bankruptcy?

My new job (after four years of depression and no work) is about 20 miles from where i live so ideally need a car to get from home to work!

Also my salary is fairly decent at £900 per month and only around £300 for bills p/m so leaving £600 as disposable income. I have actually looked to getting a job closer to home however so far no joy!

Any help would be great

Tremour-88

If your only bringing home £900 per month car finance from a dealer (for a new car) probably won't work out, as they expect you to be on 20k+ sometimes and will be looking for £200 - £500 pcm repaid on a new car.

2nd hand car finance may work out though

vindicated

Well the figures for some of the deals are around £100 - £300 per month; couple of work mates have managed to get finance whilst on the same salary however i dont know the ins and outs of their outgoings etc.

The total household income for myself and my partner is jut shy of £2000, dont know if that would make a difference at all - wasnt sure dealerships did second hand finance, rarely see it advertised - i guess you would just ask them i take it?

Im assuming finance isnt getting much custom compared to before as lots of decent new cars are being offered with a small monthly payment and a tiny deposit!?

Vikipollard

Do your £300/month bills include the cost of the extra petrol/diesel you will need to cover the 200 miles/week you will be travelling to/from work? It was costing my son over £200/month in fuel when he was doing 600 miles/month.

And although the dealership 'offers' appear to be for a small amount per month, more often than not that price ties you in for five years, at which point that vehicle is worth about a quarter of what the windscreen said when you bought it.

Might be better to look at something older, but I can't answer your question about the finance I'm afraid!

vindicated

Actually checked and its about 22 miles per day over 5 days so less than anticipated so about 110 miles a week - just checked and apparently you can reclaim tax on petrol at a rate of 40p a mile for the first 10,000 miles each tax year so that would assist with fuel costs.

Most of the offers i've looked at were for three years and you can then use the car as a deposit towards your next one...obviously im only sourcing options as ive not fully decided on which avenue to take.

Completely agree with the whole "vehicle being worth a quarter once done" but nothing much can be done about that really, its just one of those annoying things that tend to happen.

Decisions, Decisions!

BoGoF

vindicated wrote: »

Actually checked and its about 22 miles per day over 5 days so less than anticipated so about 110 miles a week - just checked and apparently you can reclaim tax on petrol at a rate of 40p a mile for the first 10,000 miles each tax year so that would assist with fuel costs.

Most of the offers i've looked at were for three years and you can then use the car as a deposit towards your next one...obviously im only sourcing options as ive not fully decided on which avenue to take.

Completely agree with the whole "vehicle being worth a quarter once done" but nothing much can be done about that really, its just one of those annoying things that tend to happen.

Decisions, Decisions!

You can't claim tax relief for ordinary commuting, i.e. from home to a permanent place of employment.

RichGold

I'd save for a while and buy something outright. Why get into debt for a vehicle?

vindicated

BoGoF wrote: »

You can't claim tax relief for ordinary commuting, i.e. from home to a permanent place of employment.

Ah yeah, I misread....silly me!

vindicated

RichGold wrote: »

Why get into debt for a vehicle?

No MOT
Free Servicing
Free Insurance (sometimes)
A new car every three years
No Road Tax (on some newer small cars)

As i've said, Im considering my options - I have savings but with the benefits listed above is it really worth spending some of my savings on an older car and run the risk of 100 quid here, 500 quid there on repairs etc - mot's each year and so forth.

Dont get me wrong, i might just decide to go with buying a car outright but one on finance does have its benefits.

Apples2

A hundred quid here and 500 there is much less than the 18k you will be spending on this new tin can (if you keep up with payments that is)

What is your plan if this scheme comes off but your new job isn't as permanent as you thought?

HappyMJ

vindicated wrote: »

No MOT
Free Servicing
Free Insurance (sometimes)
A new car every three years
No Road Tax (on some newer small cars)

As i've said, Im considering my options - I have savings but with the benefits listed above is it really worth spending some of my savings on an older car and run the risk of 100 quid here, 500 quid there on repairs etc - mot's each year and so forth.

Dont get me wrong, i might just decide to go with buying a car outright but one on finance does have its benefits.

Does buying a car save you money over your current method of transport.

i.e the Kia Picanto is £100 a month after a 20% deposit...and £100 a month in petrol. There is no free insurance offers so you will have to find your own cheap insurance. Maybe £75 a month on insurance and other small things. Will you save £275 a month on bus fares?