Credit Score - which loan?

SeanG79

Very few cars are investments, and those are not ones that you would drive regularly.

As others have said, the score from Experian is meaningless.

The fact that you have only recently changed jobs will count against you, however if your credit searches show as clean (no late payments, defaults or CCJ's) and you are traceable on the electoral roll for the last 3 years, you should be able to obtain vehicle finance via the dealer (possibly a personal loan at a lower rate will be available but the criteria is somewhat stricter - you can try the Nationwide soft search which leaves no record to give you an indication).

You don't mention what deposit you have available.

andykent

Sorry by investment I don't mean I will be buying a future classic, I probably didn't word that well. Basically ill be keeping it for 5-10 years so that when I come to start a family I won't have the expense of buying a car when money is tight. I've tried nationwide and the soft search has given me a very reasonable return so I think ill look into going through them.

I should have around £1000 as a deposit which will help. I'd rather not use a dealer for finance just because of how they show their rates, usually you get charged double what they advertise!

Thanks for the replies! Hopefully there aren't any spelling mistakes, my phones screen & keyboard is pretty tiny!

SeanG79

Good luck!

A dealer cannot charge double what they advertise, provided you pay attention to the APR and not the flat or any other rate. APR is APR and cannot change to anything else.

gb12345

andykent wrote: »

I'd rather not use a dealer for finance just because of how they show their rates, usually you get charged double what they advertise!

That is because you're not comparing like with like - dealers usually advertise a flat rate and have the APR hidden away. The APR is usually about double the flat rate.

andykent

The above to posts are what I was referring to! Generally speaking their flat rate is around 1% lower than most banks APR offerings, or so I've seen, hence why I mentioned the actual being around double. Thanks again.

gb12345

andykent wrote: »

The above to posts are what I was referring to! Generally speaking their flat rate is around 1% lower than most banks APR offerings, or so I've seen, hence why I mentioned the actual being around double. Thanks again.

A small correction - their flat rate is about 1% lower than most bank's representative APR. There is no guarantee that you will be offered that rate and what you are offered could be a lot higher.

moohound

Dealers use flat rates so it's easy for them to work out the payments, the maths are simple. Any agreement you sign should also show the APR.

I think the OP is wanting a more expensive car and saying is an investment based on cost per years motoring, a cheaper older car might need changing sooner.

My husband bought a new car 4 years ago, the loan repayments were£444 a month it's paid off in two months, he gets an allowance in lieu of a company car of £450 which covers the loan, he could have bought a used car and kept more of the money, but he chose to buy new and keep it longer, we don't intend to change it until its 10 years old, and even then I might have it, and trade mine in instead. He will save the allowance for when it's needed, and to cover repairs as the vehicle ages.

There are more things to consider, not just the initial cost of he vehicle, like reliability, depreciation, tyres and servicing.

gb12345

moohound wrote: »

I think the OP is wanting a more expensive car and saying is an investment based on cost per years motoring, a cheaper older car might need changing sooner.

I agree - my current car is 6 years old and we will be looking to keep it for another 4 or 5 years. So far, all it has needed is a regular servicing and new tyres.

It was bought from new using cash and a p/x and now has low mileage for its age. Last time it was serviced the dealer told me he would give me £15k p/x if I replaced it with a new model.

So for me it was a no brainer, as I've not been having to fork out interest for x number of years.

alexjonsson

andykent wrote: »

I'm 23. The car is an investment which is why I want to spend a little more on it than buying a cheap run around. I'm aiming to keep it for the next 5-10 years. Also, like I've stated above, I will still be able to save towards a house deposit while taking out this loan. I asked for advice on where to look for a loan, not how to manage my finances. I'm perfectly capable of that, working as a management accountant.... I'm not wanting to sound disrespectful or rude with the above.

No worries, you don't sound disrespectful at all. It seems like you have it all planned out, so good luck with your investment.

Everybody move along.