Car loan advice conflicts.

Sparkless

My husband would like to borrow around 12k to finance a new car. I have finance, but as I am still in my DMP, which ends in a few months, I am not a good credit risk and we want to clear this finance and obtain more cheaply, elsewhere, as the car is now eight years old. I have requested and am aware of the settlement figure and we have about 3k, to clear most of this and make a deposit of about 17-18%. I had no choice but to take finance at the time, at a high rate because of the DMP, following an acrimonious divorce. I have two defaults from 2009/2010 because of my divorce. I don't have loans, overdrafts and haven't missed any payments to anything, since that time.

We are advised that the main dealer can't accept a joint application. We have only considered this, as jointly, our income is 50k pa. We are advised by an internet loan site, which is presumably a broker to go for a joint loan as his income isn't enough for a single loan. This information therefore, conflicts.

On his own, hubby earns about 25k pa.

We have no mortgage. His was discharged in 2011, following his divorce. It had 6 late payments, which are shown in his reports, as he could not afford to rent and pay the mortgage, to which she would contribute nothing. It forced the sale and the divorce, which is what needed to happen. We rent privately; preferring this for now, but have already been accepted for a mortgage, in principle, in any case, within the last six months.

Now, he has 2 low apr CCs and no other finance.

We have just moved and applied for electoral registration. He applied for dealer finance and was refused; this was apparently due to an association at an address. We have checked all three credit files, found the association and removed it. He has no financial associations to me, because of my credit rating.

Will my rating affect him, if we had a joint loan and do we need to a have one, or would his income be enough to finance this amount? Sorry for being long winded, but felt there was relevance in the information provided.


Thank you.

poppasmurf_bewdley

To be honest, it looks as though you are not yet out of your DMP and can't wait to get back into another £12k of loan debt.

It is against the rules to take out a loan whilst still in a DMP.

What is wrong with having an eight year old car? Many people have such transport, and they have a reliable and cheap car. Is yours giving you trouble?

Buzby

Inclined to agree - there is no requirement for a 'new' car. Vanity aside, AA pre-reg can save you thousands and you don't pay car tax or VAT as these liabilities were paid by the first keeper.

Even then, a reliable 5+ yo old car is a steal and will allow you to keep hold of your money longer.

Herzlos

Is there a problem with the current car? It sounds as if you're not in a position to spend £12k (more likely £20k after you've paid it off) on a new car.

If something is up with your car, I'd look at getting that fixed, but if it's not worth doing so I'd be looking to get a new car at a more reasonable price. You can get pretty nice cars for under £2k (or 15% of what you want to borrow). There's nothing inherently wrong about driving an 8 year old car (I just upgraded from a 12 year old car to a 9 year old car and all the neighbours are impressed with it).

AFK_Matrix

Yeah I will agree with everyone else, no point spending 12k on a car. Especially as you have already had problems with money, do you not want the relief and happiness of knowing you have no debt and less stress? I have a 13 year old car that is in perfect condition and had very few problems with it and the probs or issues I have had have all been under £200 to fix and I have had 2 of these situations in 4 years.

There are reliable cars out there for 2-3k, best to start looking at them.

SeanG79

If you apply for a joint loan, you will be financially linked and considering the DMP and adverse, I would no suggest applying through a joint application.

If the financial association has been removed, then he can try the dealer finance option again. If declined again, then the only potential finance will be at a high APR.

Tenants with adverse credit struggle to find vehicle finance/loans, companies that will assist will want a sizeable deposit (±20-25%) minimum and will charge high rates, which are reflective of the risk.

BillJones

Sparkless wrote: »

My husband would like to borrow around 12k to finance a new car. I have finance, but as I am still in my DMP, which ends in a few months, I am not a good credit risk and we want to clear this finance and obtain more cheaply, elsewhere, as the car is now eight years old.

Jesus wept...

As a couple your finances are shot to hell, and yet you want to borrow loads of money to buy a shiny new car?

You are in a debt management plan, yet want, as a family, to take on more debt?

What will it take to make you learn? Just how much of a mess do you need to be in before you try living within your means?

PeacefulWaters

Maybe I've missed something here.

Is the question "I can't afford my existing loan payments but we want a £12k car loan"?

Get a cheap car. Get debt free. Save. Buy a better car with savings.

dealer_wins

Have to agree with the others. A loan looks like a non-starter!

There is another way to get a £12K car, its called saving up for it!!

Sparkless

Thanks for the judgmental (all except one) replies. I am not going to try to justify myself to anyone here. My DMP was a result of mr ex husband using my cards to pay HIS debts, then leaving. I have
Had to clear up after that and I have almost done it!!! My DMP has three months left!!!!! We can afford the payments and more besides. We have no other loans, bank overdraft or other o/s debt. We both work full time. We don't drink, smoke , go out or have sky!!!!!!!

We have no dependents. The eight year old car has many problems and I do a lot of driving for work, so yes, we need a car that works,

I asked for advice about financing a new ( to us) vehicle. If you are advisers in real life, think hard about being judgmental, rather than helpful. I'm sure this thread will run, but I will have no more a part in what is essentially a witch hunt.

Thanks again.

Sparkless

SeanG79; thank you for your helpful response. I don't wish for my husband to have a credit file, affected by mine, so he will have to apply. We want to clear the very high finance that is being currently paid, at a big interest rate, which was unavoidable when taken out, as I had no car, at the time and have to have one for my work.