First time finance / poor credit (big deposit)

matt-comparison

My 2 cents here. As much as I'm a supporter of the loan industry, and in particular Peer to Peer lending which is a valid option for poor credit, I would have to say why not settle for a less lucrative vehicle?

I mean if you have already gathered 9 to 10 grand, you can buy an OK average car. With your stats, being low salary, and poor credit rate, combined with sketchy history doing the wrong thing and taking payday loans when your security isn't high, just avoid it. Either way, anybody willing to lend you the funds, will charge high interest. You'll end up spending a large percentage of your salary for a long long time, and for what..? save those high interest loans to times when you'll be in a need.

If your dad owns 2 houses and a business, perhaps nag him to lend you the money with no interest, but I don't like that practice either.

DCFC79

Ahmed.ST wrote: »

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

You won't get chewed at all.
Don't sign anything unless your happy with it.

OR

Don't go the finance route and use the £10k on a car.

Ahmed.ST

matt-comparison wrote: »

My 2 cents here. As much as I'm a supporter of the loan industry, and in particular Peer to Peer lending which is a valid option for poor credit, I would have to say why not settle for a less lucrative vehicle?

I mean if you have already gathered 9 to 10 grand, you can buy an OK average car. With your stats, being low salary, and poor credit rate, combined with sketchy history doing the wrong thing and taking payday loans when your security isn't high, just avoid it. Either way, anybody willing to lend you the funds, will charge high interest. You'll end up spending a large percentage of your salary for a long long time, and for what..? save those high interest loans to times when you'll be in a need.

If your dad owns 2 houses and a business, perhaps nag him to lend you the money with no interest, but I don't like that practice either.

Thanks for the input. I may settle for a lesser car, I just wanted to try my luck for the dream car, of course if its all looking bad then indeed maybe its not the right time for it! I tried asking dad for the money and pay him back monthly and all I got back was the stare of death :rotfl::rotfl: .. Didnt say no though! So is dad being a guarantor is useless?

meer53

My input - as a parent with a son. (an expert)

If i were your Dad, i wouldn't be lending you any money, nor offering to be a guarantor. You've already had issues with PDL companies. You've inherited money, and now want to spend whats left (i assume) plus even more on a car. Your brush with PDL's should really have taught you that it's always wise to save a little something for a rainy day. There are lots of cars available for a lot less than you're wanting to spend.

Apples2

Why don't you just save the 1,340 you have spare every month for a few months and just buy the car with cash?

Ahmed.ST

meer53 wrote: »

My input - as a parent with a son. (an expert)

If i were your Dad, i wouldn't be lending you any money, nor offering to be a guarantor. You've already had issues with PDL companies. You've inherited money, and now want to spend whats left (i assume) plus even more on a car. Your brush with PDL's should really have taught you that it's always wise to save a little something for a rainy day. There are lots of cars available for a lot less than you're wanting to spend.

I have money left over. I just dont want to pay stupid money on a car. My current car is worth £10,000 which will be my deposit. The money I have left is remaining in my saving account not to be touched, unless a very good cause. I work for my dad and he knows if worse came to worse I can clear that payment in full which is why he is happy to be my guarantor but i'm not sure if that even helps? So that is all irrelevant to the question. The question is from everyones experience what are my finance options? If I won't get accepted by finance then its not the end of the world. Ill keep my car and try again another time when my credit rating have improved.

DCFC79

Ahmed.ST wrote: »

Thanks for the input. I may settle for a lesser car, I just wanted to try my luck for the dream car, of course if its all looking bad then indeed maybe its not the right time for it! I tried asking dad for the money and pay him back monthly and all I got back was the stare of death :rotfl::rotfl: .. Didnt say no though! So is dad being a guarantor is useless?

If he a agrees to being 1 and is aware of what's involved in being a guarantor.

boo_star

Ahmed.ST wrote: »

I have money left over. I just dont want to pay stupid money on a car. My current car is worth £10,000 which will be my deposit. The money I have left is remaining in my saving account not to be touched, unless a very good cause. I work for my dad and he knows if worse came to worse I can clear that payment in full which is why he is happy to be my guarantor but i'm not sure if that even helps? So that is all irrelevant to the question. The question is from everyones experience what are my finance options? If I won't get accepted by finance then its not the end of the world. Ill keep my car and try again another time when my credit rating have improved.

Even if he agrees to be a guarantor it'll be at subprime rates, him being a prime lending candidate will have no bearing on this.

If he's willing to take the risk of covering the payments when you can't, he and you would be better off with him taking out the finance and then you paying him back the monthly instalments.

Same risk, considerably less expensive than guarantor loans/finance.

jonesMUFCforever

Ahmed.ST wrote: »

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

The only way you will get the car is if daddy buys it.

engineer_amy

Apples2 wrote: »

Why don't you just save the 1,340 you have spare every month for a few months and just buy the car with cash?

Even saving £1k per month and using the remaining £340ish for socialising etc, he could have the car as a nice Christmas present.


don't go for finance when you don't need it, with your history of PDLs and missed/late payments, it is likely to be at a horrendous interest rate and you will be paying far more than the £20k your dream car is supposedly worth.


As an aside, if you have no outgoings, what have you been spending £1340 per month on if you don't have a rainy day fund