New car finance

KittenKaboodle

I wonder if anyone can help me. I really need to buy a car for my job and would like to finally get a really nice one - what are the chances of being accepted for finance for a car costing greater than 50% of my salary (I have seen this noted as a 'limit' in other posts)? Surely everyone driving round in fancy cars doesn't earn ££££££'s!

I have had credit cards in the past but all now repaid. I still have a loan which finishes soon. No defaults or anything like that. If I you dont pay (which I will!!) then they would just take the car back so less risky for them? I want to go to the dealership but don't want to embarrass myself asking for finance if there is no chance!

Apples2

For a really nice one you'll be fine.. It's only really REALLY nice ones we might need to know a bit more about you before helping.

chris-j

This 50% limit seems to be based on anecdotal rather than actual evidence.
You will get a load of people coming on telling you this is a money saving forum so why are you buying a new car. Well someone has to.:)

To answer your question though, it is down to lenders pure and simple - I have bought a number of cars over the years, sometimes borrowing more than 50% of salary. Car finance though is a bit different since it is normally technically secured on the car.
You history and other outgoings are far more important considerations IMO.

Thomas_The_Tank_Top

chris-j wrote: »

You will get a load of people coming on telling you this is a money saving forum .......

When one reads the DFW, BR, Benefits and a couple of other threads here on MSE, some are more "money dodging (as in no way, no how, paying) than saving"

By the way KittenKaboodle what car are you after?

KittenKaboodle

Thanks for the replies guys. Chris - thats good to know, i thought it must be possible! Thomas the Tank - I'm looking at land rover vogue on personal contract purchase but need to do some research as I've never had car finance before, always a loan from my bank, so not sure what the deals are like.

Apples what do you need to know? I am employed, earn 45k and my credit history is ok as far as I know. I've always paid on time and have lots of settled accounts if that makes a difference? I'm not on electoral role yet but have filled in forms and will be added from Sep/Oct.

Mara69

Not being on the electoral roll will not help so I'd advise waiting until you are and have been for a while. How much is the car you are thinking of buying?

ETA: Just seen the prices of them new _pale_

I would really recommend a good second hand model, for about a third of the price.

RDG

If your after that type of car do what most people you see driving them do and lease it. That will probably work out cheaper in the long run as there tends to be good deals on high end models.

Brock_and_Roll

Of course its your money so you can do what you like with it, but if you buy a LR from new for say £25k then the depreciation alone will be a whopping £450 per month

jumperjohn

Lease the car, not pcp. No huge loan, small deposit, pay a monthly rental and hand the car back after 2 or 3 years. This is how a lot of people drive these cars. Nice car.

BugsyBrowne

Expensive hobby leasing.
You aren't able to customize the vehicle or make modifications to it as you could if you bought it.
There are additional charges for excessive mileage (for example, more than 15,000 miles a year) and any damage to the car.
If you have the option to buy the car at the end of the lease (as is often the case), you'll have to make that decision as soon as the lease ends, whereas if you owned the car you could decide exactly when to sell it.
Generally, you will need to have the maximum insurance coverage limits.

KittenKaboodle

I'm with Bugsy, I looked at a leasing co. online that seems to give you the option to customise but I can't work out if it's pcp or not. Anyway, price is a whopping £757 a month incl vat which if you don't even own it at the end seems a total waste of money?! At least in say 3 years, I would own my (albeit depreciated) vehicle. Will see what finance deals LR are offering as I would think it cheaper to go direct?