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Car finance predicament

clashcityrocker
Posts: 15 Forumite
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clashcityrocker wrote: »Hi,
My partner applied for finance for a car as my credit history isn't the best, she was approved and signed the papers this morning but the dealership rang her shortly after she left to say that because she didn't have a full driving licence that she would need a guarantor. I'm really annoyed about this and the fact they waited until now to tell us this. I don't really wanna involve parents with this stuff.
Where do we stand on this? we have put down a deposit. the garage suggested a bank loan but i'm not keen on getting a loan. Any advice? If we were to pull out would we loose our deposit?
Thanks,
Can't you call them and ask what happens to the deposit?
I'd be surprised if they were able to keep it if the original agreement had no mention of needing a guarantor.
It may be worth your partner trying for a bank loan, what was the APR they were offering on the finance/who was the finance provided by?From £8,800 to £2,200 in 2 years.
Nearly there, just the 0% credit card to go!0 -
How does only having a provisional DL mean a guarantor is required for a loan?"You were only supposed to blow the bl**dy doors off!!"0
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Thanks for your reply.
I will be calling them tonight, just wanted a heads up on where we stand so i know what I'm talking about. Finance is with Close Motor Finance, which I understand to be a reputable company. Loans work out pretty much the same repayments to within a few pounds, I just think we will have a harder time getting a bank loan that we did with car finance.0 -
clashcityrocker wrote: »Thanks for your reply.
I will be calling them tonight, just wanted a heads up on where we stand so i know what I'm talking about. Finance is with Close Motor Finance, which I understand to be a reputable company. Loans work out pretty much the same repayments to within a few pounds, I just think we will have a harder time getting a bank loan that we did with car finance.
That's probably as much of a reason for asking for a guarantor as only having a provisional licence.
That does sound like a strange reason for deciding that someone isn't credit worthy. Did they say that was the only reason, or part of/1 of the reason/s?From £8,800 to £2,200 in 2 years.
Nearly there, just the 0% credit card to go!0 -
maninthestreet wrote: »How does only having a provisional DL mean a guarantor is required for a loan?
No idea! but he said every finance company requires the applicant to have a full driving licence!debtcutter wrote: »That's probably as much of a reason for asking for a guarantor as only having a provisional licence.
That does sound like a strange reason for deciding that someone isn't credit worthy. Did they say that was the only reason, or part of/1 of the reason/s?
That is the only reason apparently.0 -
clashcityrocker wrote: »No idea! but he said every finance company requires the applicant to have a full driving licence!
Sounds fair enough. If I was hiring out my car (which effectively is what I would be doing if I granted somebody a HP agreement) I would like to confirm that they are at least licensed to drive it.0 -
Sounds fair enough. If I was hiring out my car (which effectively is what I would be doing if I granted somebody a HP agreement) I would like to confirm that they are at least licensed to drive it.
Getting a guarantor doesn't change that, in any way, shape or form though.
She still doesn't have a driving licence
That's the point, I guessFrom £8,800 to £2,200 in 2 years.
Nearly there, just the 0% credit card to go!0 -
debtcutter wrote: »Getting a guarantor doesn't change that, in any way, shape or form though.
She still doesn't have a driving licence
That's the point, I guess
Lending, like insurance, is a risk business. Not having a full driving licence increases the risk (in the eyes of the lender), but having a strong guarantor decreases the risk.
The two thing therefore are connected because although at face value they appear to be completely unrelated they both affect the risk of the money not being repaid - one positively and the other negatively.0 -
Also, you to wonder why anyone who HASN'T actually passed a full driving test would want an expensive car on hock...cos that's how they will look at it?"We want the finest wines available to humanity, we want them here, and we want them now!"0
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Lending, like insurance, is a risk business. Not having a full driving licence increases the risk (in the eyes of the lender), but having a strong guarantor decreases the risk.
The two thing therefore are connected because although at face value they appear to be completely unrelated they both affect the risk of the money not being repaid - one positively and the other negatively.
I disagree with this line of reasoning. The two are utterly unconnected. Permission or ability to drive in no way relates to credit worthiness.
A guarantor changes nothing. There must be another reason.
You're allowed to buy expensive cars before passing your test.
All you've done is assumed that there's lower risk of defaulting if you have a licence. Makes zero sense. Lower risk of crashing yes - not defaulting.0
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