Car on finance with a default - any luck?

prezzo

OK so here's my situation...baby on the way, need a car, want to go down the finance route.

I currently have a credit score of 857 on Experian, my only debt shown on my report is a credit card balance of 974 on a barclaycard (this was paid off last month and closed, so score should go up when updated). The problem is I have an old default (£2978 credit card, Jan 2011, out of work and nothing I could do about this!) which is now settled and closed. Despite this default my rating is borderline fair/good and I would expect this to move up to good once my credit card account has updated (I think 881+ is classed as good) - has anyone managed to get a car on finance where a default is the only negative on their report?

Thanks in advance!

gb12345

prezzo wrote: »

OK so here's my situation...baby on the way, need a car, want to go down the finance route.

I currently have a credit score of 857 on Experian, my only debt shown on my report is a credit card balance of 974 on a barclaycard (this was paid off last month and closed, so score should go up when updated). The problem is I have an old default (£2978 credit card, Jan 2011, out of work and nothing I could do about this!) which is now settled and closed. Despite this default my rating is borderline fair/good and I would expect this to move up to good once my credit card account has updated (I think 881+ is classed as good) - has anyone managed to get a car on finance where a default is the only negative on their report?

Thanks in advance!

FIrst off ignore the scores and ratings on your report - they are irrelvant meaningless numbers produced by the CRAs - lenders do not get to see them and have their own criteria for accepting applications.

As the finance is secured on the car, the underwriting is less stringent than a personal loan would be, but it is still down to the individual lender, how much you want to borrow, what you earn, how much deposit you have and many other factors.

imoneyop

I agree with the above - the experience of someone else in getting finance with a default has no relevance to the likelihood of you getting it. You won't know until you try to get finance.

How much are you thinking of borrowing and what deposit do you have?

Miss_Marple_2

Hi - I got car finance whilst I had an outstanding default - I think my default was about 3 years old when I got the finance - and it was still unsettled at that point.

I have to say that the rate was not great, but needs must, unfortunately.

richierich007

i got a car loan 0% brand new car a few months back
default was 5 and a half years old
couldn't get any loans from any bank , but got a Barclaycard
so imo as gb12345 has said ive got no kids high earner own home nd job a longtime so im not going to do a runner, a massive deposit
so imo it boils down to the lender and how much a risk or not u are

good luck

The_Boss

Car finance is secured against the vehicle so this type of loan tends to be 'easier' to obtain than a bank loan. But no clue how your application will go. Certainly cant see you getting any 0% or low finance deals with a 2.5 year old default.

pompeyred

I think you'll get finance but do not under any circumstances be fooled into going into one of these 'guaranteed car finance' places.

There are plenty of decent garages who negotiate with a panel of finance houses and who don't make their money solely from selling overpriced vehicles at robbery rates.

prezzo

Thanks for the replies. As was mentioned, I wont know until I try but surely if I try one place and get knocked back then applying at another will be more difficult (multiple credit searches)?

pompeyred

If you make an application be honest with the garage, almost certainly Santander will turn you down which is a common lender in the used car market. Black Horse on the other hand will offer rates based on circumstances. Be firm with the garage that they can not float you to a panel of lenders and that for your benefit they should stop at the first and call you.

To be honest I'd be tempted to go for a Black Horse lender first as they will be more lenient.

richierich007

pompeyred ... but I can I correct you there
Santander are my lenders 13.5k 0% 5 and a half year old default (now cleared off my file)
but I agree I was honest with them from the start and they were fine

pompeyred

Theres a big difference in a 5.5 year old default and one in the last 36 months when it comes to risk management calculations, happy that you got a loan from Santander though, it's not like them to be accommodating at all. : )