Car finance after bankruptcy

Yellabowley

I was discharged from bankruptcy in January and currently my wife and I live on my wage alone as she stays at home to look after our youngest. This covers everything and my wife is starting her own business and hopefully we'll have some more cash coming in soon.

I don't really want to apply for finance but I currently drive 25000 miles a year for work with no prospect of reducing this any time soon. My car is about to hit 10 years old & 100k miles and I currently spend £400 a month on fuel.

I have two options which are to run the car into the ground and keep costs as they are plus repair bills. Or I could replace it with something newer. With a newer vehicle I could possibly half fuel costs with something more economical as well as reducing insurance, road tax and repair bills. However I would need finance to do so. It wouldn't be massive amounts of finance maybe a few grand but I don't want to wander blindly into a garage and let them leave big negative footprints over my record when they credit check me.

Is there a type of finance such as hire purchase where I'm more likely to be accepted (I've noted some car ads where they state 'you will not own this vehicle' which got me thinking) or is it a non-starter so soon after discharge?

Cheers.

mysterio_2

so soon after discharge it'll be difficult

have you thought about putting a little aside each month in a credit union account? they after a little while will offer decent rate loans

have you read the cleanup sticky at the top of this forum? that'll help as well

davetheman

What if you been discharged 3 years, any possibilities?

miss_w_2

My oh has just got a car on HP, we went BR in April 2008 & he borrowed a substantial amount (19k) he put 8k deposit down but didn't have to be that much. I wouldn't recommend borrowing that amount but we are now back on our feet & he has a good job now.

We are with moneybarn, apr is 22%

So it is possible

missinghome

Hi,

I work at a car finance company and know our underwriters view bankruptcy as too much of a risk. It will also be on your credit file for up to 6 years.

Your talking about Contract Hire or Finance Lease, these are credit options that mean you never own the vehicle but pay a monthly amount still. We have the same credit rules for both retail and contract hire so I don't think it would be successful.

The only way I could see it being accepted is if you have a large deposit say 30% of the over all loan.

(Please note im not an underwriter, I just work closely with them and I have no idea of our credit ratings as this is never disclosed to any employee)

Thanks

Kojak12

I have a firend who was in a similar situation. Getting credit will be impossible but there are some specialist companies that help arrange lease deals for those with bad credit ratings including bankruptcies. You can read more about it here;
http://www.ultracars.co.uk/non-status-car-leasing/car-leasing-with-bad-credit/
Every case is treated individually so you really need to speak to them or email them to see what, if anything, is possible for you and how expensive it would be.

Good Luck with it.