Loan help

gazd83

Hi, can anyone help point me in the right direction.

18 months ago I set up my own company, I bought a cheap run-around car to keep my costs down but it has got to the stage where I need to upgrade. I no longer feel comfortable pulling up to client's houses in my current car, I need something a little more business like.

The trouble is my company is under 2yrs old so is it likely it will be able to get a loan? I only need approx £6/7k so I'm not talking huge sums.

Another issue is that I wasn't exactly careful with my credit rating a number of years ago and I'm now paying the price. I have no debt at all but my personal credit rating is still suffering from previous misdemeanours.

chalkie99

gazd83 wrote: »

I no longer feel comfortable pulling up to client's houses in my current car, I need something a little more business like.

Park around the corner and walk.

I have had several start up customers who have tried to impress their clients with smart cars when they would have had better results by concentrating on sales rather than inflating their own egos.

One memorable one was a financial advisor who had such poor credit himself he had to pay over the odds to his and her new cars to make his customers think how clever he was.

He ceased trading soon after and so have all the others. The ones still going kept their overheads low.

gazd83

This has nothing to do with ego.

Another major factor is that my current choice is on its last legs and will cost substantial money to repair. I also have a baby on the way and would be happier driving my family around in a safer, more reliable car.

DCFC79

Have you factored in how you would be able to afford the loan repayments including all the costs that are involved with a baby and al the other bills.

gazd83

Yes, affordability isn't an issue thankfully.

Derwent

If your business is properly registered and has formal accounts you may be better off looking at a business contract hire agreement rather than a personal loan.

freeisgood

I drive a completely old banger, and always parked around the corner so clients would not make any judgements, which is a good thing.

Why not buy a much cheaper car (if yours is on its last legs anyway) and park around the corner. Cheaper cars are much cheaper to repair and will keep you out of a big debt.
This is the money saving expert forum after all

gazd83

Dont get me wrong, I'm not in the market for a luxurious type of car. Personally I feel a car of £7-9k is average price for a sensible, reliable, cost efficient car to run.

The loan will be clear within 2yrs comfortably.

DCFC79

You have had what I feel is the best solution posted by Derwent.