New Car- Bank Loan or Car Finance?

Seagull_Rob

Hello again. I am hoping to purchase a new car, and require a loan of £10k.

I'm home-owner, on £28k p.a., have £3.5k on my credit card, which I'm paying off every month. My Noddle credit report scores 4/5.

I wonder if you good people could advise whether I should go with a bank loan, or Vauxhall's finance package? Is one more likely to accept me than the other? If one declines me, is it likely the other will?

Thanks very much.

CherlokHomes

Seagull_Rob wrote: »

Hello again. I am hoping to purchase a new car, and require a loan of £10k.

I'm home-owner, on £28k p.a., have £3.5k on my credit card, which I'm paying off every month. My Noddle credit report scores 4/5.

I wonder if you good people could advise whether I should go with a bank loan, or Vauxhall's finance package? Is one more likely to accept me than the other? If one declines me, is it likely the other will?

Thanks very much.

Depends I suppose what loan rate you'll get against what package Vauxhall are doing and compare the pair.

Vauxhall finance in theory will be easier to get then a bank loan, what's your credit history like and I don't mean Noddle and their silly 4/5 score as that is meaningless?

Salary
Total debts
Missed/late payments

Seagull_Rob

CherlokHomes wrote: »

Depends I suppose what loan rate you'll get against what package Vauxhall are doing and compare the pair.

Vauxhall finance in theory will be easier to get then a bank loan, what's your credit history like and I don't mean Noddle and their silly 4/5 score as that is meaningless?

Salary
Total debts
Missed/late payments

Nationwide offer 4.9% to existing account holders. Been with them since 1999. Go into the overdraft every month- never reach the limit (£1k).

Vauxhall= 6.9%.

Up until 2010, I lived in 8 addresses in as many years. Since 2010, I've lived in the same address.

Haven't looked at Experian/Equifax. Why is Noddle meaningless?

Just have one credit card. No loans.

CherlokHomes

Seagull_Rob wrote: »

Nationwide offer 4.9% to existing account holders. Been with them since 1999. Go into the overdraft every month- never reach the limit (£1k).

Vauxhall= 6.9%.

Up until 2010, I lived in 8 addresses in as many years. Since 2010, I've lived in the same address.

Haven't looked at Experian/Equifax. Why is Noddle meaningless?

Just have one credit card. No loans.

Because Noddle doesn't lend money, lenders have their own unique scoring module when they access someone's credit file for credit which we as a customer will never know.

Have you tried Nationwide's loan quote, this will give you a quote on on your current circumstances of which won't leave a mark on your credit file.

Apples2

Seagull_Rob wrote: »

Nationwide offer 4.9% to existing account holders. Been with them since 1999. Go into the overdraft every month- never reach the limit (£1k).

Vauxhall= 6.9%.

Up until 2010, I lived in 8 addresses in as many years. Since 2010, I've lived in the same address.

Haven't looked at Experian/Equifax. Why is Noddle meaningless?

Just have one credit card. No loans.

Both of those rates are representative, only 51% of successful applicants get that.
To be in that group you need an exemplary credit file, never using your overdraft (oops!), clearing credit card balances every month (oops!), having a history of stability at home (oops!)

Whilst not being a financial disaster, you aren't one of the finest so I don't think you should simply assume you will get the rate advertised.
Try the soft search as advised and see what happens.

CLAPTON

Seagull_Rob wrote: »

Nationwide offer 4.9% to existing account holders. Been with them since 1999. Go into the overdraft every month- never reach the limit (£1k).

Vauxhall= 6.9%.

Up until 2010, I lived in 8 addresses in as many years. Since 2010, I've lived in the same address.

Haven't looked at Experian/Equifax. Why is Noddle meaningless?

Just have one credit card. No loans.

if you go into OD every month how will you repay the 10,000 loan?

gazman100

Apples2 wrote: »

Both of those rates are representative, only 51% of successful applicants get that.
To be in that group you need an exemplary credit file, never using your overdraft (oops!), clearing credit card balances every month (oops!), having a history of stability at home (oops!)

Whilst not being a financial disaster, you aren't one of the finest so I don't think you should simply assume you will get the rate advertised.
Try the soft search as advised and see what happens.

Wouldn't say it's quite that black and white from personal experience. I use my overdraft every month and have some outstanding balance on my credit card but was accepted by HSBC for their 4.9% APR loan at headline rate in Nov last year for a new car.

Apples2

Great, now start saving so you don't have to throw 4.9% away next time.

DCFC79

Seagull_Rob wrote: »

Haven't looked at Experian/Equifax. Why is Noddle meaningless?

The score 4/5 is just a figure, no lenders actually see it.