Car Finance - New Job

GoldenShadow

Hi

I've just started a new job (literally a week ago) and so haven't had a payslip yet. Salary is just over 22K.

Basically, I want to get a new car and would prefer to get it on finance as opposed to wiping out savings. Would only need 3-4K on finance but I'm wary of getting rejected.

No late payments or defaults, but prior to this job I worked part time earning 6.5K per year. I have a store card with limit of £200, credit card with limit £1200, credit card with limit £500 and an OD (grad so interest free) of £1250. All credit cards and OD are paid in full on payday so they aren't usually relied on as such.

I don't want to get rejected if the fact I've only just started my job will impact significantly. Someone has told me car finance is usually very lenient but I don't want to take that as gospel...

Is it sensible to avoid finance just in case?

Tixy

It will impact on a lending decision, particularly in the first few months of a new job.
Whether the impact would be significant enough to cause your application to be declined is hard (impossible) to say.

GoldenShadow

Thanks. The other alternative is for OH to get a new credit card and stick it on that. Hmmmm...!

forgotmyname

Buy something with half your savings? £2000 is more than enough for a reliable car that will last several years at least.

GoldenShadow

forgotmyname wrote: »

Buy something with half your savings? £2000 is more than enough for a reliable car that will last several years at least.

I've got enough savings to buy it I just don't want to wipe them all out really. One of my dogs is very ill and whilst the pet insurance pay out for it, some vets are a bit arsey with regards to you paying up front. My usually healthy dog just had her tail amputated last week after some kind of trauma and that cost £700. I should get it back but just have to wait for the payout etc. OH would also lend me the money (he has more savings than I do) but I'm just considering other options.

My current car is worth about 2K but is starting to have a few issues that aren't overly cheap to rectify. Its got very low mileage for what it is I think it is more age related now. Working part time and studying full-time I didn't really drive far but I do a 50 mile commute now and would feel happier with something a bit newer.

I think a credit card at 0% interest is a better option, that or OH loaning some of the monies so I can preserve some savings for the dogs! Car finance just seemed 'easy' in regard to doing it there and then at the garage.

Thanks for the replies

Tixy

You may find that the car dealer will charge a 2%/3% fee for paying by credit card which adds to the cost.
I guess you are hoping OH would get a 0% credit card?

edit - sorry x-post

Becka38940

I recently got a loan with Sainsbury's after having a new job for 1 month and was completely upfront about this on my application so it may work.

You could also try a personal loan rather than finance as you may get a better interest rate?

I found a lot of dealerships representative APRs were higher than I was offered by Sainsbury's!

Hope that helps!

jonesMUFCforever

I recently purchased a Ford car using the options finance scheme.
I took all kinds of ID and payslips etc - they credit scored me without asking any information about my pay or other outstanding debts.
All they needed was the photo driving licence AND paper counterpart and that was it.

dealer_wins

Save up for a car, dont borrow from your future, your future might need a loan not loan repayments!!

gkerr4

there are some good loan rates out there now - even my bank (first direct) are at the 4% mark. I wouldn't take credit from the dealers as the current industry rates are fairly higher - the exception being manufacturer backed deals on new cars and the like.

tesco are good too - and very quick to process from experience.

You already have some reasonable figures on your side -the £1200 limit on your CC for example, shows you have some good rating already. I would suspect you will be fine.

jaydeeuk1

Isn't that the point of savings, to spend them when you need to? For the first 12 months, an employer can pretty much get shot of you straightaway without reason (as long as not discrimination) as I did recently to an apprentice, so I'd advise against spending wages you haven't earned yet.