I Need £9000 For A New Taxi .....

whiz_kid

About 4 years ago i had a Capital One card that i got in to debt with....The debt was passed on to a collection agency.....I have only £1000 of debt left to pay and have never missed a payment.

3 years ago i went to the bank for a loan of £8000 to buy a new car for which i need to use as a taxi, i been a taxi driver for 19 years.

I got my loan against my mortgage without any problems and made over payment on my mortgage so as the loan was paid back within 3 years......The £8000 has now been paid back, and im also in even less debt to the collection agency as i been paying them back every month no problem.

I now need a new car to continue my job, but when i went to my bank i was told i cant get a loan or an advance against my mortgage even though i have about £60,000 equity on my mortgage.....i don't understand why i got a loan 3 years ago for a new taxi when i was worse off than i am now ....Yet now i have been turned down ......?????

I need a new car to continue my job, but the bank has said no to me getting £9000 against my £60,000 mortgage .....I might as well sell my flat if i cant borrow against it ????

As soon as the do a credit check my 1 black marker come up and they just say no ......I was even told i couldn't borrow as much as £50 if i wanted to .....

I dont owe anyone else any money and i dont have any store cards etc etc ....Anyone got any ideas how i can borrow £9000 or i might be out of work ?????

R_P_W

What happened to the new car you bought 3 years ago?

opinions4u

whiz_kid wrote: »

I now need a new car to continue my job, but when i went to my bank i was told i cant get a loan or an advance against my mortgage even though i have about £60,000 equity on my mortgage.....i don't understand why i got a loan 3 years ago for a new taxi when i was worse off than i am now ....Yet now i have been turned down ......?????

1. Lender criteria have tightened.
2. Your circumstances may be different (net profit, accounts)
3. Your property may be worth less.
4. They don't have to lend if they don't want to.

I need a new car to continue my job, but the bank has said no to me getting £9000 against my £60,000 mortgage

Your business plan has been to replace debt with debt. Never to build up the capital from income. That's caught up with you.

.....I might as well sell my flat if i cant borrow against it ????

I suppose you could sleep in the car you buy with the equity.

I dont owe anyone else any money and i dont have any store cards etc etc ....Anyone got any ideas how i can borrow £9000 or i might be out of work ?????

Take three years' accounts to a mortgage broker and start from there.

_Andy_

Get some advice from CAB (sorry couldn't resist)

Doesn't sound fare though, must be driving you mad when they're just taking you along for the ride.

Paul_the_Painter

Try a car dealer, they have less strict criteria as they secure the debt against the car (HP) although you should expect an eye watering interest rate.

I'm guessing the reason you need a new car is that your local authority imposes age restrictions on the cars they allow to be used as taxis.

whiz_kid

R_P_W wrote: »

What happened to the new car you bought 3 years ago?

It has now got 140,000mls on the clock and is starting to cost me money to keep it on the road.

CKhalvashi

whiz_kid wrote: »

It has now got 140,000mls on the clock and is starting to cost me money to keep it on the road.

140k? Nothing.

I ran a Peugeot 406 to 530k, and it's still a taxi (last saw it sitting on a rank about an hour ago), and my current car will have more than that when I change it next March.

If I were you, I'd sell for a 3-4yr old Skoda Octavia. I moved one of ours from the rank to the back of the office (company car) yesterday, with 516k. Even at this mileage, it's only had a new turbo and a clutch.

I'm not a driver any longer (in fact, I have very little to do with the day to day running of our company, as I have other ventures), but an ex Addison Lee Galaxy (our 12 have had no problem), or something similar would do you well.

CK

taxi73

Why have you not got money put away for repairs or vehicle replacement? This surely should be part of your business planning.My taxi had just shy of £2k of work done last month but as we put money away each week we had it covered.

YoungBusinessman

As a taxi driver i would think you would try to get more than £2k a year away for repairs, if it costs less than any excess saved for next car purchase. The taxi can say alot about the driver

CKhalvashi

YoungBusinessman wrote: »

As a taxi driver i would think you would try to get more than £2k a year away for repairs, if it costs less than any excess saved for next car purchase. The taxi can say alot about the driver

£4k a year, and that's a minimum. My maintenance bill throughout the entire time owning my 406 was about 10p a mile.

OP knows as well as Taxi and I do, roughly what 140k will have earned him (even if we can't pinpoint it exactly), and it will be easy enough to replace the car on that money, if carefully planned.

YoungBusinessman

£4k seems excessive but i am just your average Joe 12k a year van man. If it was your pride and joy, workplace and your sole income generator then i would most definitly be putting away £4k+ as you say. OP, save the money you have been paying out on debt payments and learn from this blip.