Bankrupt 4 years ago, need a car but can't get a loan What do I do?

cevans454

My husband and I declared ourselves bankrupt 4 years ago. We were discharged after 6 months but the bankruptcy stays on our credit file for 6 years. During this time we have still continued to pay our car loan to Ford Credit and we have now paid the car off as the OR said that we could keep the car. The car is 8 years old and starting to need repairs on a regular basis. We are now in a better position financially and earn a good wage but can't get a car loan. However we need a reliable car for work. Can anyone give any advice please?

Thanks

IF

Hi cevans454 and welcome to the BR board. Have you cleaned up your credit files? See Fermi's sticky:

Credit Reference File Clean Up Post Bankruptcy Sticky - [URL="http://forums.moneysavingexpert.com/showthread.html?t=677875
"]Click here[/URL]

Your accounts remain marked as defaulted. But you need to check and make sure that:

- The default date is on or before your BR date.
- The current balance is marked as settled/satisfied in some way.

For a loan try a Credit Union. Google Credit Union and/or your local town/county. They ask that you save with them for a little while and then they will let you have a small loan. Some of the bigger ones may even let you have a loan without starting saving.

Best wishes
If...x

cevans454

Thanks If. We did all that about 18 months ago. I've done everything you could possibly think of!

PippaGirl_2

My advice would be to save to buy a better car rather than to use credit. Make do until then.

lazer

8 years old is not bad for a car.

Put aside an amount for maintenance each month and an amount to buy a new car.

From experience - you'll get a period for about 2 years where there is a lot of repairs needed and it will then calm down

My mum is still driving my old 15 year old car.

Make do and don't get a new one to you can afford it after saving!

Stepup

I would advise save. However. If you absolutely can afford a better car no question.

Then a good deposit and car finance is the most likely option, as the finance is secured on the car. Through a dealer. So exceptance is much more likely. As they have an asset and a good bit of equity from the deposit.

Although you may pay a high apr.

An unsecured loan, I'd imagine will be very hard.

Orffyreus

Cevans454, neither a borrower nor lender be. I would advise that you find a good, trustworthy mechanic that to look after the car you have. (they do exist and if you are in the Wakefield area I can recommend one with reasonable charges)

Probably not what you want to hear but as the previous 3 posters have said, it would be better to save.

freddy911

You may want to take a look at this thread

https://forums.moneysavingexpert.com/discussion/3484923

Another forum member has had luck with this company

https://www.firstresponsefinance.co.uk/car-finance

Good Luck