Car finance shortly after moving house

[Deleted User]

Hello everyone,

my first post here so please be nice

i'm hoping for some advice from someone who has 'been there' regarding car finance.

my car has seen better days and i've come to the point at which repairing it isn't fun or enjoyable anymore so i'm looking to get something new.

i've got about £2000 to put down as a deposit on a car around £10-12k, and my income is just over 27k pa so i get about 1700 a month after tax pension etc.

1 credit card, current balance £0 (paid off every month)
never missed a payment and my credit record is all green

i used a car manufacturers approximation and the repayments were just over £200 a month so well affordable for me (in my opinion)

my issue is i only just moved house in October (homeowner now) was a tenant at previous address for 3 years.

i've heard that moving house then applying for finance is likely to get you refused unless you have lived there 6 months, 1 year and some people say 2 or 3 years.

can anyone provide some advice from experience or someone in the know about my chances of getting accepted.

the last thing i want is to be declined and hinder any chance in the near future (plus i think id be rather embarassed)

Thank you

[Deleted User]

are you on the electoral roll at your new address,thats the minimum you need to do,the rest may depend on what credit you have avaliable(card limits) v income
personally id get what i could for current car add the £2000 to that,save yourself £10000 worth of debt which will still have an outstanding balance when you`re fed up with the car

Edi81

I used to be a credit underwriter for a car finance company.

If you moved in October then your credit file will show active credit (hopefully including your mortgage) at the new address. As long as you were on voters at your previous address I don't see any problem. Obviously subject to you having good credit history etc etc.

bigadaj

OP - the last thing you want really is to lose a huge amount on a new car rather than be embarrassed by any rejection.

It sounds a bit concerning if this is your main worry as you are not only likely to overpay for the car but also pay a high rate on any finance agreeemnt.

I'd look for something cheaper if I were you, if your credit is good then maybe look for a personal loan from your bank, at least for comparison purposes.

Also as is frequently said, if you can afford to pay £200 for a loan you should currently be saving this anyway and paying for teh new car or at least a large deposit. The alternative is to pay £400 if you get a loan to mean you won't have to next time round.

Buzby

Agreed. The trick is to let some other fool take the hit on car tax and VAT, leaving you to enjoy the value without the overheads. Dealers have to pre-register their cars and whilst this will show as the first keeper, often there is still only delivery mileage.

I saved £7k on a pre-reg Renault. It had 7 miles on the clock!

tinkerbell28

We've been there .

We bought brand new. Usually we get pre registrations. But the discount my oh got was more than employees get. Infact it would've been rude not too.

It was for a lot more than that. All that happened was GMAC wanted to confirm what his last address was. He then had to take in a proof of address, so I presume you've got your driving license changed?

We paid ours off though as we knew he had a bonus coming so wasn't bothered about the finance. Makes no odds in getting it though.

bigadaj

Buzby wrote: »

Agreed. The trick is to let some other fool take the hit on car tax and VAT, leaving you to enjoy the value without the overheads. Dealers have to pre-register their cars and whilst this will show as the first keeper, often there is still only delivery mileage.

I saved £7k on a pre-reg Renault. It had 7 miles on the clock!

Well done and good luck with the Renault.

With that mileage you've got hundreds or possibly thousands of miles before you get any problems with a Renault.

bigadaj

tinkerbell28 wrote: »

We've been there .

We bought brand new. Usually we get pre registrations. But the discount my oh got was more than employees get. Infact it would've been rude not too.

It was for a lot more than that. All that happened was GMAC wanted to confirm what his last address was. He then had to take in a proof of address, so I presume you've got your driving license changed?

We paid ours off though as we knew he had a bonus coming so wasn't bothered about the finance. Makes no odds in getting it though.

If it's not rude when coming to car buying it ain't cheap enough.

tinkerbell28

bigadaj wrote: »

If it's not rude when coming to car buying it ain't cheap enough.

It was cheaper than a year old car. The thing is we have big cars, which we need. We've learnt the hard way. They are vey expensive when they go wrong. Thousands and thousands. It's better for us to save and get a car under warranty, sell on. plough that money into a new car. Rinse and repeat.

bigadaj

tinkerbell28 wrote: »

It was cheaper than a year old car. The thing is we have big cars, which we need. We've learnt the hard way. They are vey expensive when they go wrong. Thousands and thousands. It's better for us to save and get a car under warranty, sell on. plough that money into a new car. Rinse and repeat.

It's always arguable, some of the best value cars are often big mercs audio and bmws which are a few years old and high mileage. They can be bought for a fraction of their new price and aren't guaranteed not to go wrong but are built to last for years if not decades, and run for hundreds of thousands of miles.

You pays your money and you make your choice.

benevans1989

Hi,

I got a new car on finance at the start of November, 2k dep, 5k finance, on a 3yr old, 27k on the clock,

Anyway. I had just moved back into my mums for about 1 month before moving again at the end of november.
I had no problems at all obtaining the finance, and got their best rate they could 'offer' which is still like 8.9 i think. eitherway a good deal as i got a newer car, fuel efficient and 30 tax a year, Good times.

NOW, - ive just seen a loan which offers like 5.9%, so i could pay the balence off the car, pay off an already outstanding loan so in a sence debt consolidation, and would leave my financially better off in the long term, because over 4 years it saves me close to 1k in interest payments, 250 a year in my pocket and a similar price per month - ive not taken it yet, for obvious reasons of i need to weigh my options - however its an option im willing to take if im better off

I do hope this information helps, So prehaps have a look around ?