Car finance with old defaults?

mrcjevans

Not missed anything in the last 4.5/5 yrs, but i have a couple of old defaults that are just over 5 yrs old, with 3000.00 deposit, would i have anychance of getting a new car on finance, talking of cars in the region of 18000.00

andyfromotley

mrcjevans wrote: »

Not missed anything in the last 4.5/5 yrs, but i have a couple of old defaults that are just over 5 yrs old, with 3000.00 deposit, would i have anychance of getting a new car on finance, talking of cars in the region of 18000.00

i suppose the only way to find out is to apply.

Can i just ask why you want to borrow so much, 84% of the cost of the car, pay a huge chunk of interest for an asset that will depreciate? Would a cheaper car be an option. Seems crazy to me but i'm definitely not a car guy. (i'm not having a pop, i just genuinely don't understand why people borrow so much for cars which then lose their value at an alarming rate) By my reckoning just owning this car, not running it, will cost you £10,000 over 3 years assuming 50% depreciation and 1k interest at 4%. Obviously loads more at a higher rate. whats the attraction?

Vikipollard

I agree with Andy.


OP, why not buy a car outright for £3000 and then put into savings religiously each month the amount that you WOULD have been paying for a £15k loan (about £450/month for 36 months based on 5% according to the calculator thingy).


The £3k car should not cost a ridiculous amount to maintain for three years - but I accept you can get bad ones.


After the 3 years, you will have over £16k and at that point, not only will your defaults have disappeared into the sunset, you will be able to see whether or not you REALLY want to spend that much of your hard earned cash on a car.