Car Post Bankruptcy

singingsister

Hi guys,

It's been a long while since I've posted.

We went BR in Nov 2011.

We recently had a car accident (not our fault) and due to the low value of the car (£1000) the insurance want to write it off.

After we've paid the excess (other party hasn't admitted liability), and the rest of our premium is taken we'd be left with £500.

We have 2 young kids and I need the car for work.

There is no way we will be able to get a SUITABLE replacement car in a safe, roadworthy condition for £500.

So, we are left with the only option of getting a loan.

If hubby or I take a loan out, we are looking at an APR of about 49%. A real kick in the teeth seeing as "normal" APR is something like 9.9%.

We've thought about asking my parents if they will "buy" us a car and we pay the monthly payments for the car.

We can afford about £150 a month for car payments (providing we are very careful) but I do not see there any point taking a loan with an APR of almost 50%. That's 1/2 the car!

Can anyone recommend any companies who do loans to ex-bankrupts? I've googled, and researched, and have read lots of stories both good and bad about various companies, hence my reason for recommendations!

And if reading this, you want to have a bash about us taking a loan and that we should make do etc - please don't. You don't know our in depth circumstances.

Thank you

owlet

Are you on facebook? The local selling groups in my area are always advertising cars & there are loads of nice ones in your price bracket. It's certainly worth joining a few selling groups to see.

singingsister

owlet wrote: »

Are you on facebook? The local selling groups in my area are always advertising cars & there are loads of nice ones in your price bracket. It's certainly worth joining a few selling groups to see.

Owlet I am and am signed up to all my local selling groups. Never seen cars on there!

And are you seriously saying there are "nice" cars on them for £500?

owlet

Yes, I belong to half a dozen or so selling groups & I've seen loads come on that look nice in the £500 and under bracket. That's certainly where I'll be looking when my daughter passes her test soon.

Ok they are normally 2000 - 2005 reg but my hubby's car is 2004 & 150,000 miles & still no sign of a breakdown.

Plenty of older cars around that will last a good few years until your BR comes off your credit file & you can buy without ridiculously high interest rates. You only need one to get you by for just over 2 years.

singingsister

owlet wrote: »

Yes, I belong to half a dozen or so selling groups & I've seen loads come on that look nice in the £500 and under bracket. That's certainly where I'll be looking when my daughter passes her test soon.

Ok they are normally 2000 - 2005 reg but my hubby's car is 2004 & 150,000 miles & still no sign of a breakdown.

Plenty of older cars around that will last a good few years until your BR comes off your credit file & you can buy without ridiculously high interest rates. You only need one to get you by for just over 2 years.

What hurts is that ours is 05 reg 307 Pug, fairly high spec and runs like a dream. It kills me that we won't get anything to "match" for £500.

alastairq

At £500, you are into what you may refer to as 'banger' status. As such, probably the best category within which to buy a decent car. [IE, no massive capital outlay or, getting tied up in credit agreements?]

At that price range, there really is not a lot to lose.

Check out the motoring forum on MSE?

There is a thread ...''your bangernomics successes'....which is worth a read in itself.

In any event, post the question [something like, what should I aim for, for £500?']

To find these cars, there are local newspapers, shop window for sale boards, eBay, Autotrader, Gumtree, etc.

Try local small garages, see what they have, or know about?

Whatever you end up with, it will perform the basic function for which you need a car...transport.

You would do well to enlist the aid of a knowledgeable friend/relative....best to ensure they are an enthusiast, rather than a righteous know-it- all.

Then you will get an honest opinion, rather than one coloured by urban myth and bullsnot.

As a past bankrupt, it is as well to have developed a healthy cynicism regarding materialistic worth.

{ I take it you don't live at an address where the age/perceived quality of one's car is a pre-condition for being granted, or tolerated, residency?]

Maybe a good idea for you yourself to develop some basic mechanical skills, which will help overcome what really could be trivial mechanical problems...[instead of paying someone through the nose to do the same thing?]

Get onto the other forum, see what is really out there?

lilybankrupt

Just something to think about, as part of my prep for BR my family kindly bought a (fairly cheap) car to lend to me on an ongoing basis as I was offered a great job that needs a reliable vehicle that doesn't look too 'banger-ish' (500-1000 miles a month for work). I had a nightmare insuring it as I'm not the owner, most insurers won't touch insuring a car that isn't owned by the main driver. Admiral were the only people who would do it :-/