Car Loan advice/help

HemmingsLive

Good evening all,

I'm currently in the market for a used car in the region of £3,000-£5,000.

Unfortunately I've got a bad credit score due to a notice being served on me for an unpaid phone bill that I received between phone contracts whilst I was in between residences. I have despited this and unforunately EE refused to revoke this.

I'm 24 and have an income of £1390 per month and currently have savings of around £1,000.

I've been in my job for just over 2 years and I'm looking for a car loan in the region of £3,000-£5,000.

I haven't applied for a loan in about six months however I did go to my bank who said they were unable to give me one at this time due to my credit score which I'm working to improve on Experian.

Nonetheless the time has come that I need to replace my Renault Clio. The best I can get for it is £250.00. I'm desperate for a car loan however don't want to go down the "bad credit loan specialists" and get stung by a huge interest rate. I know the interest rate won't be amazing so any advice/help on the above would be great,

Thank you for your time in reading this.

DCFC79

You don't have a bad credit score which lenders dont see, you have a mark on your credit file which lenders can see.

forgotmyname

Dont do it. Sister went to one of the companies that give anyone a loan and after 3 years of a 5 year loan she has already paid double the cars original value and it needs a ton of work that she cannot afford to do.

bargainbetty

You my be able to secure finance on the vehicle from a dealership, which means the vehicle is forfeit should you stop paying. The interest rate won't be good, but you will get a car.

You have £1k in cash, plus the £250 from the car, use it to buy a runabout and save the loan payments each month towards a better car in a year or two. If you prepare a proper budget and work out how much you could afford to save towards it, that might help focus your ambition on saving faster...

Don't go with gurarantor loans or bad debt loans - you will end up doubling the costs in interest, as you know.

wiltsguy_2

dont do it, with the £250 for your clio and £1k savings, you could purchase a decent car from a motor auction for that amount, if you're not sure about cars take a mate that is, motor auctions are so much cheaper. I used to deal in cars on the side, second hand dealers would buy them, wash them and add £1500 to the windscreen price! and they hate the fact that more and more genral public are buying from auctions.

Paully232000

HemmingsLive wrote: »

Good evening all,

I'm currently in the market for a used car in the region of £3,000-£5,000.

Unfortunately I've got a bad credit score due to a notice being served on me for an unpaid phone bill that I received between phone contracts whilst I was in between residences. I have despited this and unforunately EE refused to revoke this.

I'm 24 and have an income of £1390 per month and currently have savings of around £1,000.

I've been in my job for just over 2 years and I'm looking for a car loan in the region of £3,000-£5,000.

I haven't applied for a loan in about six months however I did go to my bank who said they were unable to give me one at this time due to my credit score which I'm working to improve on Experian.

Nonetheless the time has come that I need to replace my Renault Clio. The best I can get for it is £250.00. I'm desperate for a car loan however don't want to go down the "bad credit loan specialists" and get stung by a huge interest rate. I know the interest rate won't be amazing so any advice/help on the above would be great,

Thank you for your time in reading this.

when was this issue? How long ago?

MEM62

How did you arrive at your budget? Is this based on the car you want or what you can afford?

You have less than one months salary in savings. There is a school of thought that says that if you cannot afford to save then you cannot afford loan repayments.

I appreciate that the advice you are looking for is an answer as to how to obtain the loan. I would encourage you to consider a different point of view. If you can save £300 per month and make your current car last another 10 months you'll already have the lower end of your budget saved. Do so and you might be back here in a few months asking how to get out of the loan agreement.

Borrowing money at inflated rates (Which is likely from the information you have provided) to buy an asset with a value that drops like a stone is not exactly sound financial decision making.

dealer_wins

I have decided David is a spammer lol