Car finance help

bozzy4

I was looking to buy a new car last year but unfortunately I got made redundant at the beginning of year. I got 17 years redundancy payment but that had to get me though. I missed a few and late payments which has affected my credit rating badly. I then had to scrap my car as it had died on me and I am using my mum in laws car. I have got a new job and been there 4 months now and it's 24k pa but I need to give my mum in laws car back. Coz of the distance 40 miles round trip and the hours I do I need a new reliable car. I will need credit but trying to improve it so don't won't to apply for them to say no and it affects me further. Any help or advice would be brill as I need to do this in the next 2 weeks. Ps I am on a temp contract for 2 years so makes it more difficult thanks in advance

Foxy-Stoat_3

What going to be the value of the new car?

bozzy4

Not really bothered on price just need to be very reliable and economics was looking around 6-8k I've even looked at leasing but just need to be quick now

CLAPTON

bozzy4 wrote: »

Not really bothered on price just need to be very reliable and economics was looking around 6-8k I've even looked at leasing but just need to be quick now

plenty of reliable cars for a lot less that 6-8k

Foxy-Stoat_3

My advice will be to finance a cheaper car, once you have built up savings/job security then if you still want a dearer car go for it....I do around 20,000 miles a year and spent £2500 on a 2002 Audi A4 tdi........high 40's mpg (£0.13 per mile) and very reliable.

I would stay away from expensive long finance agreements if possible.

bozzy4

Thanks for the advice but I don't have that kind of money lying about and I have to get a car quick due to mum in law wanting her car back. Pretty much stuck. I can save but only over time as I still have to pay household bills but can manage 200-250 per month

Apples2

bozzy4 wrote: »

Thanks for the advice but I don't have that kind of money lying about and I have to get a car quick due to mum in law wanting her car back. Pretty much stuck. I can save but only over time as I still have to pay household bills but can manage 200-250 per month

Is that how much you save each month now or how much you think you can afford?

You may not have £2.5K lying about but you don't have £6-8K either.
You are looking FAR too high for a car, you can get a decent car MUCH cheaper.
It really isn't a good idea to stretch yourself like this, get something affordable.

Foxy-Stoat_3

What I mean is I wouldn't buy a £3,000 car for £6,000 plus the high interest from these easy credit places......as you'll owe £10,000 on a car thats worth £3,000.

Can you apply for a couple of credit cards and buy on one that and balance transfer to a low/zero rate?

bozzy4

A know what you all saying about car finance and I agree but it's got to the stage I have to do something quick. I didn't want to go down the car finance if possible but as I don't have cash lying about at the moment it seemed my only option till I came on here. The credit card seems a good idea but again would I get one and what about short term leasing? Deferently after all the advice don't wanna go down car finance route now

Foxy-Stoat_3

If you have to give your Mother In Law's car back chop chop (bad idea to borrow any family members/friends car) then I would hire a small car for a few weeks to give you some breathing room....I hired a Corsa for about £100 a week before to give me some room to maneuver.

You should be able to apply for a couple of credit cards, virgin/barclays/natwest I think all do zero/low rate transfers....some of them do low interest money transfers direct into your account, my barclay card does, no fee 3% or something like that.

If you borrow money on a credit card to buy a car though, you need to make sure you dont miss a payment, cut the car up and pay it down as quick as possible not spending on it.

After you have cleared the card you should, if you want to buy a newer car, get a better rate loan and spend away.

Tixy

Have you actually looked at what is on your credit file?
How many missed payments? are they all in 1 month or over a few months?
Did any creditors enter a default?

You say you are trying to improve it - what are you doing? what open credit accounts do you have?

If you have recent missed payments and you are only on a temporary contract then you are likely to struggle to get accepted for finance/loans or a new credit card.

How much can you afford in loan repayments/car savings a month?