Car Finance

itchyextremist

I know literally nothing about car finance after only ever owning cars paid for with cash. I am currently driving a Ford Ka. It barely scrapped through it's last MOT (cost me a couple of hundred) and I seriously doubt it'll make it through another one, so I'm thinking of spending a bit extra and getting a newer car.

Problem is that my credit pretty much sucks and I have been denied car finance before (although that was a couple of years ago). I'm in debt with some credit card companies, but keeping up with payments and on top of all other household bills.

Basically the question is, can I get car finance with poor credit and if I can could I afford it?

Nasqueron

Question should really be should you be getting yourself into debt for a depreciating asset when you can't even pay off your credit cards - how would you cope with an extra £xxx a month on top? Chances are with poor credit you'll get a higher interest rate too which could be even worse for repayments.

You need to look at how much you can put aside a month after all bills and then consider on top of that extra insurance / repairs etc - if you can save say £100 a month then save that and get a £1000 car and scrap the Ka before the next MOT.

You would be better going on the Debt Free Wannabe forum and post a statement of affairs and see where you can save more money to allow you to save more or pay off the debts giving you more freedom to choose.

yoshiyella

You would be looking at a minimum of £200 a month for several years and that could well be for a car that needs hundreds of pounds in repairs each year.

As above, if you can, I would save £200 a month for 5 months and get a £1000 motor and then continue to save £100 a month thereafter!

thebritishbloke

If you're struggling with credit card debt, you should not be taking on more debt. Keep your current car until the repairs become more than the cars value.

itchyextremist

I'm not struggling with credit card debt, I have credit card debt, but I am making my payments. I'm currently saving for an xbox one/ps4, which is why I'm looking into car finance. Basically the question is: can I get car finance with poor credit?

yoshiyella

itchyextremist wrote: »

I'm not struggling with credit card debt, I have credit card debt, but I am making my payments. I'm currently saving for an xbox one/ps4, which is why I'm looking into car finance. Basically the question is: can I get car finance with poor credit?

You probably can get car finance - however, an xbox 1 or ps4 will cost less than 2 months worth of car payments that you will need to pay for 3 to 5 years!

I have a car on finance and I have poor credit, however you have to be positive you can pay it each and every month (and in my case for 4 years) - if you miss just one payment then kiss the car goodbye! And remember you will have to have comprehensive car insurance and have it car serviced as part of the agreement so again another £50 that needs to be saved each month and that will assume you have no issues at MOT and service.

Speaking from experience I would save to get a £1000 car then save again and part ex and so on! In the long run this will get you a better car and in a shorter time with out comprimising your financial situation

downhillfast

itchyextremist wrote: »

I'm currently saving for an xbox one/ps4, which is why I'm looking into car finance. Basically the question is: can I get car finance with poor credit?

So you're saving up for a one-off item that costs £300... but don't seem to think that finding £200-300 a month for the next 3-4 years will be a problem?

itchyextremist

downhillfast wrote: »

So you're saving up for a one-off item that costs £300... but don't seem to think that finding £200-300 a month for the next 3-4 years will be a problem?

Pretty much - yeah!

selement

Have you considered leasing? We lease a car currently rather than owning as we needed a car quicker than waiting to save would take. It's a fixed cost each month so we plan for the expenditure, ok we don't get the asset of the car as we don't own it but we find it works for us, we'll get another new one at the end of the contract! As it is a new car it is very unlikely to have things wrong with it. No MOTs until 3 yrs but contracts tend to be 3 years so might dodge that bullet or only have to do one near the end.

thebritishbloke

itchyextremist wrote: »

Pretty much - yeah!

Seriously? This has to be a troll. If you're having to save up money to buy a £300 console, but expect to be able to afford £300/Month for the next 3-5 years, you need to learn some basic arithmetic.

itchyextremist

selement wrote: »

Have you considered leasing? We lease a car currently rather than owning as we needed a car quicker than waiting to save would take. It's a fixed cost each month so we plan for the expenditure, ok we don't get the asset of the car as we don't own it but we find it works for us, we'll get another new one at the end of the contract! As it is a new car it is very unlikely to have things wrong with it. No MOTs until 3 yrs but contracts tend to be 3 years so might dodge that bullet or only have to do one near the end.

This is a very good idea - hadn't considered it. Just a brief scan and I can lease a small car for less than £100 a month, sounds like a good idea, but probably credit plays a part I would assume.