Car finance poor credit query

Jamezon

Need to buy a replacement vehicle as existing car is proving too costly to maintain. Worth about £4-5k for a trade-in. I was unemployed for a while 3-4yrs back and the knock-on effect is 1nr default and a patchy payment history. During the same period, we unfortunately defaulted on the car finance as well, sadly in my wife's name. So, we don't have a 'clean' profile we can apply with. Assuming I can get finance at a worse rate, does anyone have any suggestions on the best place to look? i.e. competitive rates, minimal impact on credit file. Please steer clear of "you can't afford it" style responses, I'm looking for practical advice thanks. Wherever I apply (assuming I succeed), I want access to a vehicle of my choosing and to be able to off-set the debt with trade-in of existing vehicle.


Many thanks!

Dandytf

try money barn

sophiesanderson92

Would it be worth looking at PCP or HP finance? Unsure if this is something that would suit you, but if you were to put £4/£5k deposit towards a new/approved use car it would certainly have a big drop in the monthly repayments. With PCP as well, you have the option at the end to either pay the balloon payment, trade in for a newer car or refinance. I was approved for PCP through BMW Financial, and I certainly don't have a squeaky clean record (1 settled defaulted account 4 years ago and missed payments for a phone bill 2 years ago). Go to a dealership and be honest about your situation, at the end of the day the car sale's man want's to make a sale so he/she would help you as much as they can. I think if you go in and just be outright honest about it, they may be able to do something.

BossKy

hi did you get anywhere with this? i am in same position and not sure where to start
thanks

DCFC79

BossKy wrote: »

hi did you get anywhere with this? i am in same position and not sure where to start
thanks

I predict you won't get answer.

I suggest you start your own thread.

GazNicki

Use the CreditClub on here to see if you would be suitable for any personal loans rather than car finance. I got a personal loan from Zopa for my last car as my other went pop. However, my car cost just less than £5k total.

Personally, if I was in your situation, I would look at private sale of the current car with a view to buying something within the budget of the sale. For £5k you can get a lot of car for your money.

However, if you require/want something newer and are looking to part-ex, you could consider still getting a personal loan and adding that to the part-ex value of the car.

Many car dealers will do finance (often HP through the likes of BlackHorse) and if you are looking at a reasonably priced car with a decent deposit, you do stand a better chance. If you can get £5k for your car, and you are looking at a car worth £10k, then that 50% deposit will stand you in much better stead.

However, if you are looking at a £30k car with your part-ex as a down payment, then your credit report will probably play a far bigger role in the decision making from the creditors.

GazNicki

Good grief, I typed all that without checking the date. A thread from 2015 resurrected. That's 5 minutes of my life I won't get back.