First time finance / poor credit (big deposit)

Ahmed.ST

Hi guys,
Sorry I know this has been asked over and over again many times! The few threads that I found were back to 2011 so information could be slightly outdated.

Anyway! I'm looking to buy my dream car which is approximately £20,000 and I can happily put £9000-10,000 deposit down for it so that leaves me £10,000ish to finance.
I earn £1,2000 a month after tax and have 0 outgoings apart from car insurance. No rent, no mobile phone contract, no kids, nothing apart from car insurance which is £60 a month and I also get £200 a month elsewhere so my total monthly income is £1400 after tax.

My credit rating is poor due to 2 payday loans totalling £900 in the past which were not paid because I had lost my job. No payments were made in a whole year so there was PLENTY miss-payments and the loans were defaulted and were only fully paid off in full this morning.

Will I have a chance of finance? or even close?
Dad owns 2 houses and a business and has offered to be my guarantor ONLY IF ALL ELSE FAILS. Will him being a guarantor do any good? However, Ideally I want my dad completely out of this. I'd like to do it myself even if it means paying slightly higher interest.

Whats best for my situation and good interest rates?
1. Personal Loan through bank/online
2. Finance on myself through dealer
3. Finance with guarantor through dealer
4. Finance through online finance specialist companies such us carloans4u.com


Thanks for reading.

[Deleted User]

With a patchy history and a low income compared to the loan you're after, I would say your chances are slim at best.

You would stand a better chance with finance secured on the vehicle, but it's still asking a lot.

Ahmed.ST

Deleted_User wrote: »

With a patchy history and a low income compared to the loan you're after, I would say your chances are slim at best.

You would stand a better chance with finance secured on the vehicle, but it's still asking a lot.

What is finance secured on vehicle? Apologies i'm not very clued up in this as this is a first time experience :j

19lottie82

Ahmed.ST wrote: »

What is finance secured on vehicle? Apologies i'm not very clued up in this as this is a first time experience :j

It means if you don't pay they can take the car.

Ahmed.ST

19lottie82 wrote: »

It means if you don't pay they can take the car.

Thats fine, I would do that. Is it more of an option? Do all finance companies offer this? With 10k deposit and secured on vehicle does that mean I'm practically guaranteed as they cant really lose if I dont pay? Cheers!

DCFC79

Why not enquire at the dealership.

jonesMUFCforever

........But of course if you smash up the car then there wil not be anything to repossess.
It won't be easy for you to get any finance.

On a different track if you earn £1400 per month should you not contribute to your parents for your keep?

ViolaLass

You have £10k in savings but couldn't pay the PDLs?

Ahmed.ST

jonesMUFCforever wrote: »

........But of course if you smash up the car then there wil not be anything to repossess.
It won't be easy for you to get any finance.

On a different track if you earn £1400 per month should you not contribute to your parents for your keep?

How is that in any way your business? But for your ease of mind, I paid £80,000 towards the house I live in.

Ahmed.ST

ViolaLass wrote: »

You have £10k in savings but couldn't pay the PDLs?

A close someone passed away not long ago, I was fortunate and was left with something. Money was spent towards new house, paid my debts off, helped family members and now finally its time to please myself which is why I enquired about a new car.

Thanks

Ahmed.ST

DCFC79 wrote: »

Why not enquire at the dealership.

I've been scared to as some folks said by applying for finance can affect my rating/score. I decided to ask the experts first for input before committing. I wanted some background knowledge first so I don't get chewed by dealers