Loan

sassy_one

Hi

I'm looking to take out a loan, not right now but later this year for around £3000 to buy a new car.

What would be better, taking finance or getting a unsecured loan?

It's maybe less than £3000 but not more than that, and I'm looking to repay over 2-3 years.

I have no missed payments, no late payments, no defaults, no CCJ, I'm a homeowner (outright) no mortgage.


What are my chances of getting finance on a car? Would that be easier than a loan as they would have security (the car)? As I don't want to secure anything on my property.

Saints2011

My first question would be cant you save for the car being a homeowner with no mortgage?

It really depends, you may well get a 0% deal through a dealer which would beat a personal loan. Genuinely speaking it's easier to get finance through a dealer due to the security of knowing they could repo the vehicle. Although we are only talking a small amount.

Do you currently work?
Do you have any debts?
Any open credit, if so the balances & limits?

£3000 is a fairly small amount and depending on your current circumstances you could secure a good apr.

sassy_one

Saints2011 wrote: »

My first question would be cant you save for the car being a homeowner with no mortgage?

It really depends, you may well get a 0% deal through a dealer which would beat a personal loan. Genuinely speaking it's easier to get finance through a dealer due to the security of knowing they could repo the vehicle. Although we are only talking a small amount.

Do you currently work?
Do you have any debts?
Any open credit, if so the balances & limits?

£3000 is a fairly small amount and depending on your current circumstances you could secure a good apr.

I'd rather spread payments, I could afford most things without credit but I'm old school and would rather spread the cost and keep the cash in my account.
And if I was to save I'd be looking at least 12 months to afford it, and my current car has MOT for 6 months left.


Yes I do.
No "debts" not that I couldn't clear in under two months if needed.
I have around 6-7 catalogue accounts, limits ranging from £300-£1500 (opened within last12 months)
3 credit cards that I applied for last month, capital one, vanquis and aqua (all accepted)

That's it, so all in all I have balances just on my calalogues of around £3000 but as I says, this will be clear before I apply for any finance so really, I'll have no debt or outstanding credit at all.


I've had a look at CarCraft, or am I best avoiding?

I'd want to repay around £200 a month and pay a deposit of £500.

InsertWittyName

Avoid Carcraft, they don't call them Carshaft for nothing!

sassy_one

InsertWittyName wrote: »

Avoid Carcraft, they don't call them Carshaft for nothing!

Okay
A local garage near me uses Black horse finance? Chances of acceptance?

Saints2011

sassy-one wrote: »

I'd rather spread payments, I could afford most things without credit but I'm old school and would rather spread the cost and keep the cash in my account.
And if I was to save I'd be looking at least 12 months to afford it, and my current car has MOT for 6 months left.

Although its sensible to keep a emergency savings pot of say 3-6 months expenditure. When making a big purchase like this I can assume your money is instant access say getting 3%AER when you look at a best by loan at 6.3%APR from Tesco which only 51% of people apply will get, you've got to ask yourself whether it makes financial sense to
keep the money rather than just pay it of.

Is the car going to fail the MOT do you think? How much do you estimate it would cost? You could buy a run around with a 12month MOT for £500 and then you would have time to save for a new car.

sassy-one wrote: »

Yes I do.
No "debts" not that I couldn't clear in under two months if needed.
I have around 6-7 catalogue accounts, limits ranging from £300-£1500 (opened within last12 months)
3 credit cards that I applied for last month, capital one, vanquis and aqua (all accepted)

That's it, so all in all I have balances just on my calalogues of around £3000 but as I says, this will be clear before I apply for any finance so really, I'll have no debt or outstanding credit at all.

Do you need so many open credit accounts?
Most of your accounts have been opened within the last twelve months which means lots of searches which will make you look desperate and in financial trouble to any new prime lender.

Just rember that catalogoues aren't usually the cheapest to buy from.

sassy-one wrote: »

I've had a look at CarCraft, or am I best avoiding?

I'd want to repay around £200 a month and pay a deposit of £500.

I have heard quite a lot of negatives about Car Craft on this forum although I have no personal experience with them.

I would run some figures but on the phone ready for bed, I will tomorrow if no one has. But you need to take into consideration .

- the value of your car after the finance has ended, will you need another car
- what's to say this isnt going to fail its mot
- will you get bored of the same car
- insurance / mot / tax / maintenance on top

sassy_one

Saints2011 wrote: »

Although its sensible to keep a emergency savings pot of say 3-6 months expenditure. When making a big purchase like this I can assume your money is instant access say getting 3%AER when you look at a best by loan at 6.3%APR from Tesco which only 51% of people apply will get, you've got to ask yourself whether it makes financial sense to
keep the money rather than just pay it of.

Is the car going to fail the MOT do you think? How much do you estimate it would cost? You could buy a run around with a 12month MOT for £500 and then you would have time to save for a new car.



Do you need so many open credit accounts?
Most of your accounts have been opened within the last twelve months which means lots of searches which will make you look desperate and in financial trouble to any new prime lender.

Just rember that catalogoues aren't usually the cheapest to buy from.



I have heard quite a lot of negatives about Car Craft on this forum although I have no personal experience with them.

I would run some figures but on the phone ready for bed, I will tomorrow if no one has. But you need to take into consideration .

- the value of your car after the finance has ended, will you need another car
- what's to say this isnt going to fail its mot
- will you get bored of the same car
- insurance / mot / tax / maintenance on top

Yes I'm getting around 4% instant access.

It's not so much it will fail but it's costing me a bomb to run, it's a V6 and it's drinking £50 of fuel a week £25 when I don't drive to work and only use it around town, yes it's that bad!
Insurance is £700 a year (fully compo, 10 years no claims)

So I was thinking of getting a Mondeo, no V6 like the one I have now and I don't think I'd get bored as I've had this one for 5 years now.

No, I don't need all the calalogues, only got them to be able to move to a credit card as I've never had credit since last year (yes, never!)

I'll be closing three of the accounts within the next 3-6 months.

Checking my credit report, only have 4 searches past 12 months so think a few have come off this month.


I'd buy a cheap secondhand car for £500, I've seen a few but I'm thinking for something to keep and use for at least the next 5 years again, so. Ideally want to put it towards a car on finance.

I admit, I'm pretty impatient is another reason lol!


I looked at one finance deal earlier, no deposit, £3000 over 4 years charge for credit was something like £650?
I would be looking to apply around October this year by then I'll have no searches at all, no open credit accounts besides the credit cards.

Okay, if you could

A quick question, if I applied for CarCraft finance online do I get an instant response? And if I don't want to take the offer, which I won't can I withdraw without any negative affects?

bouncydog1

If you apply for CarCraft I believe there will be another credit search which, as mentioned, in the eyes of lenders makes you look desperate.

Suggest you accept the advice on here already and steer well clear. Just google CarCraft reviews - that should put you off.

sassy_one

Hi

Justo day got a call from a car sales forecourt (have had name down a while) and they've had a Mondeo just come in, triponic auto box as I wanted too!
It's £2300! Really don't want to miss out, so asked if could hold and he is, but only till Monday.

Need advice like, yesterday.

Asked about finance and he seems to think ill be accepted? So long as I have no late payments, missed or any defaults.

Question, how likely am I to get finance for £2300? I know it's a lottery but on a scale of 1-10.

Also he said he can try with 5 different lenders? Would this mean five searches? EEK

is it worth me trying and taking one more search or missing out on this and waiting 6 months?

Saints2011

sassy-one wrote: »

Hi

Justo day got a call from a car sales forecourt (have had name down a while) and they've had a Mondeo just come in, triponic auto box as I wanted too!
It's £2300! Really don't want to miss out, so asked if could hold and he is, but only till Monday.

Need advice like, yesterday.

Asked about finance and he seems to think ill be accepted? So long as I have no late payments, missed or any defaults.

Question, how likely am I to get finance for £2300? I know it's a lottery but on a scale of 1-10.

Also he said he can try with 5 different lenders? Would this mean five searches? EEK

is it worth me trying and taking one more search or missing out on this and waiting 6 months?

Go for it if it's right for you.

I wouldn't like to say where you fall on that scale.

Just go for it that's all you can do, 5 different leanders would mean 5 different searches. Make sure the dealer tells you the apr not the flat rate as this is usually about half the apr and is decieving. Keep us updated, good luck !

immoral_angeluk

Considering the amount of credit you've taken out recently within a short space of time I'd be surprised if you were accepted. This would surely ring alarm bells with any reputable lender?