Car finance on a apprenticeship and benifits.

Milo.gamble

Hey guys first ever post here despite viewing the forums all the time. As the title says I'm looking for car finance but I only earn 460 a month on my apprenticeship I also get around 250 a week in benefits as I'm only 22. I live with my girlfriend and our 2 children. I currently have a motorbike but my son was recently diagnosed with autism so as appointments and other things to attend and we will need to holiday in the U.K. For a while as he doesn't cope well with planes. So all in all I need to get rid of my bike and get a nice big family car can anyone advise any company's that will considers me with my situation? I've tried a few online places that say I'm guaranteed finance but as soon as I say part of our income is benefit based they don't want to know and it's drove my credit score down by a 100 witch isn't great. My current credit score is now 799. Might have been better if I asked when it was 899 thanks in advance

motorguy

Don't get a car on finance. You can get a very serviceable Mondeo or vectra for £500-1000

gilbert_and_sullivan

Agree with Motorguy, don't do it, those guaranteed finance bombsites are one step above 4000% daylight robbery wide boys and spivs who sell certain misery on the telly, they prey on the unwary and those who want it now.

Only buy what you can buy outright, some surprisingly good cars well under £1000, the trick is to buy what isn't fashionable.

Something like a Sonata/Magentis is likely to be lower mileage, and possibly better looked after, than some more popular choices, Hyundai/Kia have made good cars for many years, long before they became acceptable for those who have to impress the Jones's.
Protons even shouldn't be overlooked, my daughters chap had nearly 12 months good service from one for the princely sum of £250 with a full ticket.

Thing is with these motors, its yours, no one's going to be knocking on your door demanding money with increasing penalties and years of debt, often long after that guaranteed finance ex auction heap has been scrapped.

arcon5

Lenders often look at household income rather than just income from employment... in your case circa £1400 pm (£1k benefits + about £400 apprenticeship), thus annual income of circa £16,800.

But I agree with #2 in its entirety. You don't necessarily need a loan to buy a okish car. A 12 year old petrol mondeo can be picked up for £500 in fairly good condition for its age. Other cars available of course - Ford Focus' seems to be given away these days - amongst many other cars.

wildincrawley

Yup just get a car for £500 with a year's MOT and 6 month's tax, put aside a few £ each month for the next tax. Maybe your partner can put half towards it out of her earnings. Oh, and you don't "need" a holiday. You might want one, but your son won't know the difference, when he's young.

You will thank yourself when you finish your training and enter a fully paid job with nothing hanging over you!

Milo.gamble

Thanks for the quick replys. I understand what your saying I would rather buy out right. But as I travel a lot every day for work aswell as wanting to travel around the U.K. With both kids I really want a not brand new but not over 10 years old car. I don't want to have to worrie that the car will break down on long journeys and I need it to be really comfortable for my son climat control and quiet inside as he is very sensitive to loud noises especially. The thought of braking down on a motorway with my son it would break his heart. We are really good at managing money and we can afford the payments my wages is also due to go up in September.

Milo.gamble

Also my partners earnings go straight into a savings account towards our mortgage depost and I won't under any circumstances use that for anything because I'll regret it! It's also and it's quite low as she only works 16 hours a week.

motorguy

Milo.gamble wrote: »

Thanks for the quick replys. I understand what your saying I would rather buy out right. But as I travel a lot every day for work aswell as wanting to travel around the U.K. With both kids I really want a not brand new but not over 10 years old car. I don't want to have to worrie that the car will break down on long journeys and I need it to be really comfortable for my son climat control and quiet inside as he is very sensitive to loud noises especially. The thought of braking down on a motorway with my son it would break his heart. We are really good at managing money and we can afford the payments my wages is also due to go up in September.

Spending £££££'s on a car wont guarantee it wont break down.

Take out breakdown recovery insurance. I have driven some serious scrap in my time (a van i bought for £90 with no fifth gear springs to mind) with no issues. I was doing 2,000 miles a month this time last year in a £300 Fiat Marea.

Most cars these days have aircon and a simple check will confirm it works.

Please please please dont take out finance. In your financial circumstances you'll end up paying £8,000 through interest charges and an over inflated price for a car worth £3,000 and fit for scrap when its paid off.

"i need a good car 'for the baby'" really isnt an excuse. Think of your financial future. Your child wont give a monkeys whether your car is 2004 or 2014.

motorguy

Milo.gamble wrote: »

Also my partners earnings go straight into a savings account towards our mortgage depost and I won't under any circumstances use that for anything because I'll regret it! It's also and it's quite low as she only works 16 hours a week.

So you're proposing taking out a loan @ probably 20% APR minimum for say £5,000 rather than take £1,000 out of your savings thats making you 2% per year in interest?

Trust me on this - when you go for a mortgage, having £1,000 less in savings and small outgoings is going to look a lot more favourable than £8,000 of debt and a £150-200 a month car payment every month

Milo.gamble

Thanks for the replys Paul I guess I should think about my options. But my finances arnt awfully bad. Isn't there a finance company out there that won't completely rip me off?

PasturesNew

arcon5 wrote: »

...annual income of circa £16,800.

It's like earning £23,000.

£250/week, 4.3 weeks/month, plus the £460 is a monthly takehome of £1535, which is what you'd get on £23k.