Car loan, crap credit.

glvr

CHR15 wrote: »

Flawed logic to state the current car is unaffordable to repair yet claim a new car is all of a sudden affordable.
The value of the overall car is of no consequence, so long as it works, so it comes across as a simple preference of having a new one.

Fix it or get a £400 banger, then work on not seeing credit as a good thing.

In the history os MSE, not one "poor credit looking for a car loan" post has anyone NOT lived at the end of a long muddy dirt track many miles from public transport. Makes the genuines ones less creditable.

A repair could be £1k, and a repayment just £150 monthly.. It's relative to cash available now.

Not a simple preference of replacement car - which would likely be lower spec than current.

400 not available currently. Plus, many of us have bought cars at that price and then quickly had to spend more on essential repairs.

There's clear logic in using earnings to pay for something which should be sufficiently reliable (which of course is never a given but unlikely at 400).

And yes, some people do live rurally, with poor public transport.

David301

Never going to get a loan, not at this amount of income.

in 13 years of driving i have had numerous vehicles, new, used, old, big, small, all paid for in different ways.

With a low or no income i would avoid any sort of finance if possible. It is far too easy to get into a terrible situation because there isnt enough being earned for the guaranteed bump in the road.

my last vehicle list

ford transit owned 3 years needed a gear box as second had gone, got £800 px towards a £1500 mondeo zetec estate.

Mondeo lasted 3 years also, gear box again (auto this time) got £350 px towards a £700 citroen C5

Citroen lasted a year, weighed it in as the engine died, got £170 to go towards a £350 renault scenic.

Renault scenic lasted a year, cambelt snapped, got £150 px towards my current car, BMW 3 series which cost £1100, currently at the year mark with no sign of trouble.

So in 9 years I have spent just over £2000 on cars and then the usual MOT and what not, never had to spend more than £250 for bits and bob per year for any of them, as i just get rid and start over.

forgotmyname

It could cost £1000 to repair but if you shop around its likely to cost half of that at most.

The issue is that a fairly new car could need a new clutch and brakes and easily double that bill whilst still paying for it. How will she afford servicing and repairs whilst paying thew finance at an extortionate rate?

Thats the trap my sister fell into, A fairly new car, But even fairly new cars need servicing and brakes and othe bits. She had to borrow more to get the brakes sorted.

And now its got even more issues but still almost 2 years left to pay.

If she cannot afford to save £1000 to repair the current car she wont have a chance with a car on finance.

Gaz83

CKhalvashi wrote: »

The issue of this is not being able to find more work without a car, and needing a car to find more work, which can be a horrible cycle to be in.

Now that I can understand, however the OP suggested that the reason for a net pay of only £500 was due to her being a lone parent.

CHR15

glvr wrote: »

A repair could be £1k, and a repayment just £150 monthly.. It's relative to cash available now.

That's the model Brighthouse use to flog TV's and Fridges for many thousands over the selling price.
It's only a few quid a week with no concept of how long it is repaid for.
Your former partner is looking forward to a pretty meagre income but you already want to commit 25% of it to loan repayments, essentially working for four weeks but getting paid for three.
The spiral is still on it's downward curve.

glvr

CHR15 wrote: »

That's the model Brighthouse use to flog TV's and Fridges for many thousands over the selling price.
It's only a few quid a week with no concept of how long it is repaid for.
Your former partner is looking forward to a pretty meagre income but you already want to commit 25% of it to loan repayments, essentially working for four weeks but getting paid for three.
The spiral is still on it's downward curve.

Thanks - yes I agree, and sometimes being able to have something relatively essential and which enables progress toward prosperity is worth the cost. The 'down' can then eventually become 'up', even though the cost has been higher.

Before posting, I'd seen figures where a 3k car could be repayable at 36 months of £150, or 48 @ 125. And, if the credit were available, then the figures are acceptable and payable.

Years ago, I was ok about spending money on contract hire cars (and they were relatively costly then) because the cost was outweighed buy the reliability which meant that I could know with certainty that I could go and do work which would pay enough to make the cost tolerable - rather than as had often been the case, having to deal with car breakdowns (despite buying something which should have been decent).

glvr

forgotmyname wrote: »

It could cost £1000 to repair but if you shop around its likely to cost half of that at most.

The issue is that a fairly new car could need a new clutch and brakes and easily double that bill whilst still paying for it. How will she afford servicing and repairs whilst paying thew finance at an extortionate rate?

Thats the trap my sister fell into, A fairly new car, But even fairly new cars need servicing and brakes and othe bits. She had to borrow more to get the brakes sorted.

And now its got even more issues but still almost 2 years left to pay.

If she cannot afford to save £1000 to repair the current car she wont have a chance with a car on finance.

The £1k figure is realistic - there's no wiggle-room.

I understand the issue of borrowing to buy something which then requires additional expense and could become dead before the loan is repaid.

It's a risk with whatever you buy, and hence it may be wise to borrow as much as you can get and afford to repay so that a reasonable degree of reliability can be bought.

Currently, saving £1k is very difficult if you're unable to work because you can't get there. Hence borrowing to be able to travel becomes sensible.

tonyh66

instead of arguing the toss with a bunch of strangers, just go out and buy a car on credit, we will see you back, asking about payday loans and how to get out of car finance deals early.

Gaz83

tonyh66 wrote: »

instead of arguing the toss with a bunch of strangers, just go out and buy a car on credit, we will see you back, asking about payday loans and how to get out of car finance deals early.

This is essentially it.

You want someone on here to tell you it's a good idea. That's not going to happen, because it's not. But at the end of the day it's your decision.

takman

What is actually wrong with the current car that is going to cost £1000 in repairs?. I've seen so many posts where people pay way over the odds for repairs you can usually pay a lot less with a little knowledge.