How likely would I be to get finance?

mrsdwhite

I'm looking into getting a new car, I currently have an old Ka and really want. A new more economical and reliable car. I have around £1500 deposit and would like to get a new car costing around £9000. I can afford the repayments that I've seen online for quotes for them on finance but my credit rating is only average not excellent. What are my chances of getting finance for a new car with my average credit rating?

macman

What sort of finance? HP, PCP etc? You can afford the repayments, but based on what APR?

forgotmyname

Almost anyone can get credit, But the more of a risk you are the higher the APR.

More economical, Yet your spending £9000 to save 10mpg? Thats a lot of fuel.

Sister got a car with a high APR and now the car needs work and she cannot afford the finance and the work.

Stigy

Possibly posted in the wrong place, but I'll try my best to advise also. The credit rating/score itself is only a guide and lenders won't look at this in too much detail, though I guess it might serve to prevent them going to page 2 of the report if the score on page 1 is 'very poor' or equivalent.

We need more information as to what makes your report only average. For example, my wife's is only average because she's never really had any credit, whereas somebody else's may be average because they've missed a few payments on a credit card or loan. The latter is more likely to have a detrimental effect for you gaining credit than if you were like I mentioned initially and only had an average score because you've not had much credit before.

Other factors that will be taken in to account are things like CCJs and defaults on accounts, which stay on your report for 6-years before dropping off.

My score is shown as excellent with Experian and poor with Equifax, which goes to show that the score itself doesn't mean much. I'd be more inclined to see it as poor myself, as I've had two CCJs (both now satisfied) and a few defaults (I blame the ex wife...). Even though I'm debt free now, there's that black mark for a few years in some cases yet.

You may find that lenders will only offer you finance with a guarantor as you're a slightly higher risk. As I said, the more info you can supply, the better.

gilbert_and_sullivan

If you want a new car then fine, so long as you can afford the payments.

You'll almost certainly be worse off, it's depreciation (which most people ignore in costings) and finance costs will far outweigh the meagre fuel economy savings.

So long as you know all that, best of luck in finding the deal you want.