Car Finance (HP) Question

tb2805

Hi there,

I entered a Trust Deed (Scotland) in 2006 which completed in late 2009, almost 3 years ago.

During the 3 year period I did not apply for credit (of course!) and kept the car I originally had, maintaining the payments successfully.

Since it's completion I have made 2 successful application for car finance. However, the other day I was turned down by everyone - Arnold Clark Salesman advise that they try almost 30 companies!

I wanted to borrow £9995 against a car which was £10800 - effectively I wanted to borrow 92%. My question is would I have a better chance of being successful if there were a bigger deposit (for example if I was borrowing £7000 against the cost price (meaning I wanted to borrow 65% of the total)?

I find it all very confusing. Since completion of my Trsut Deed I haven't been able to obtain ANY credit at all, besides the previous car finance (the last of which I was allowed to borrow 90% of the vehicle value) !!!

Thanks for any guidance.

Cheers,

TB

chanz4

Yes the bigger the deposit, the less risk for the lender. But if your trust deed is still showing it may hamper it

Telbert

A bigger deposit will always help!!

I would be worried if that salesmen propped you to 30 different companies! I generally do 3, two at prime and 1 sub-prime.

Generally each submission shows on your credit file, 30 in a short period of time would not good look.

CLAPTON

since 2009 you have bought 2 cars and now you want a third?

Apples2

CLAPTON wrote: »

since 2009 you have bought 2 cars and now you want a third?

All on finance :eek:. I shudder to think how much money has gone down the drain.

andymc29

Buyign a car on finance is one of the worst financial decisions you can make. The value of cars drop like a rock!

Why not buy a car a few years older and maybe not even need a loan at all?

KingElvis

Apples2 wrote: »

All on finance :eek:. I shudder to think how much money has gone down the drain.

The desire for bangers is strong with this on Obi-wan

BugsyBrowne

andymc29 wrote: »

Buyign a car on finance is one of the worst financial decisions you can make. The value of cars drop like a rock!

Why not buy a car a few years older and maybe not even need a loan at all?

Brilliant let's all just drive around in 2k bangers in future not for me thanks.

KingElvis

BugsyBrowne wrote: »

Brilliant let's all just drive around in 2k bangers in future not for me thanks.

Fair point but three cars on HP in three years is finacial lunancy unless you happen to be Ted Turner...which obviously given his past, the op isnt.

rtho782

Could be 0% finance for all we know, I've had 3 motorbikes on HP in the last 3 years but never paid a penny in interest. Had I bought them all outright I'd be worse off.