Am I likely to get car finance/loan?

Zach2k

Hi,

I'm 30 years old. Having graduated and worked a few years back, I went back to studies to do medicine and due to qualify this summer. I've pretty much got a guaranteed job as an NHS doctor from this summer (starting salary around 31k). I've not had a job for the last 5 years being at medschool.

I'm a bit tired of driving bangers now.

If I was to apply for a cheeky 20k car loan/finance as soon as I started working, what are the chances I'd get it?

I've had a 3 loans taken out in the past (ranging from 3000 to 6000) with no repayment problems, though I'm still in the process of paying one of them back. No credit problems as far as I am aware.

Thanks for any advice/opinions.

lippy1923

Depends on your credit score, but I wouldn't say you have the best chance as you havn't been in a job long enough and you are asking for a loan that will take up over 60% of your gross income while you are already paying back something.

gb12345

Zach2k wrote: »

... starting salary around 31k).

If I was to apply for a cheeky 20k car loan/finance as soon as I started working, what are the chances I'd get it?

No lender will consider you for that level of loan on a 31k salary - it is equivalent to 65% of your gross annual salary.

Why do you need a 20k car? You can get a non-banger for a lot less than that.

Zach2k

Would they take into account that its a secure job?

Also although my salary would start at 31k it goes up by 10-20k every year on the NHS, and I was looking to pay it back over 5 years if possible. Would that make a difference?

lippy1923

Zach2k wrote: »

Would they take into account that its a secure job?

Also although my salary would start at 31k it goes up by 10-20k every year on the NHS, and I was looking to pay it back over 5 years if possible. Would that make a difference?

Very doubtful. What car are you looking at? I hope you're not buying brand new or paying full asking price.

Save up and buy it out right seems like your best option. It will only depreciate in value anyway so save yourself the interest.

DCFC79

Try your own bank for a start.

It all depends on what lenders see how much of a risk you are re the 20k loan on a promise of a 31k job starting in the summer. I imagine it would be a high apr if you were to get a loan.

Zach2k

DCFC79 wrote: »

Try your own bank for a start.

It all depends on what lenders see how much of a risk you are re the 20k loan on a promise of a 31k job starting in the summer. I imagine it would be a high apr if you were to get a loan.

Cool will do.

It wouldnt be on the promise of a 31k job, I'd only apply for the loan/finance once I actually start working. I'd need to buy a car at that point to get to work regardless, just wondering to what value of loan I'd most likely be entitled to.

DCFC79

Zach2k wrote: »

Cool will do.

It wouldnt be on the promise of a 31k job, I'd only apply for the loan/finance once I actually start working. I'd need to buy a car at that point to get to work regardless, just wondering to what value of loan I'd most likely be entitled to.

Its all dependant on your exposure to debt eg any debts, credit cards etc. Check your history with the credit ref agencies. Generally lenders dont like (or is it wont let you) you cant borrow more than 50% of your income, its simple finance really.

Finance might be an option but you would have to look into it.

gb12345

Zach2k wrote: »

Would they take into account that its a secure job?

What makes the NHS any more secure than other employers? They are making people redundant at the moment.

Zach2k wrote: »

Also although my salary would start at 31k it goes up by 10-20k every year on the NHS, and I was looking to pay it back over 5 years if possible. Would that make a difference?

The lender won't care less about this, they will look at what you are earning now, not what you might earn next year or the year after.

Zach2k

Simple finance = complex finance to me I've been hibernating from the real world for last 5 years.

So a 15k loan is likely with 31k salary? Would they want me to have worked for several months first? I noticed on other threads 3 months payslips being requested..

DCFC79

Zach2k wrote: »

Simple finance = complex finance to me I've been hibernating from the real world for last 5 years.

So a 15k loan is likely with 31k salary? Would they want me to have worked for several months first? I noticed on other threads 3 months payslips being requested..

They like to see stability in a job but whether all lenders are the same Im not sure. If your on good terms with your own bank then yes give them a whirl. Maybe give the Nationwide soft search a go too (might give you an indication of what to expect). Yes a 15k loan on a 31k salary is possible to get, dont forget to also take into consideration other bills, payments as well.