Finance a new car with poor credit

stupid-fool

I previously had some financial difficulties which have damaged my credit scores. I have no CCJs and am debt free now with spare income every month but a still have a poor credit rating.

Unfortunately over the time it took to clear my debts, my car has become old and unreliable but I need a reliable car for my job.

I have spoken with some leasing companies who immediately told me that historic defaults on my file will prevent me getting approved so there was no point progressing. One company could offer me a lease with no credit check but the costs was about double and therefore I am unwilling to get ripped off.

Do I have any options left to replace my car as the repair bills are hindering my ability to save large sums for a replacement?

motorguy

stupid-fool wrote: »

I previously had some financial difficulties which have damaged my credit scores. I have no CCJs and am debt free now with spare income every month but a still have a poor credit rating.

Unfortunately over the time it took to clear my debts, my car has become old and unreliable but I need a reliable car for my job.

I have spoken with some leasing companies who immediately told me that historic defaults on my file will prevent me getting approved so there was no point progressing. One company could offer me a lease with no credit check but the costs was about double and therefore I am unwilling to get ripped off.

Do I have any options left to replace my car as the repair bills are hindering my ability to save large sums for a replacement?

Yes - put aside what you can for a few months (or presumably you have some savings by now), gather up £1,000 (maybe by borrowing the difference from family or a friend) and buy a petrol focus or a vectra if you need something bigger. Cheap as chips and very reliable.

There is absolutely no need to be saddling yourself with high rate debt over a car.

Found this in about 2 mins of checking

http://www.autotrader.co.uk/classified/advert/201508075855920?price-to=1000&search-target=usedcars&page=1&maximum-age=up_to_10_years_old&make=ford&fuel-type=petrol&radius=1500&postcode=bt622hb&onesearchad=used%2Cnearlynew%2Cnew&maximum-mileage=up_to_80000_miles&sort=default&model=focus&logcode=p

forgotmyname

Use the spare money you have had over the past few months to put the current car in good order or towards an upgrade?

mcpitman

motorguy wrote: »

Yes - put aside what you can for a few months (or presumably you have some savings by now), gather up £1,000 (maybe by borrowing the difference from family or a friend) and buy a petrol focus or a vectra if you need something bigger. Cheap as chips and very reliable.

There is absolutely no need to be saddling yourself with high rate debt over a car.

Found this in about 2 mins of checking

http://www.autotrader.co.uk/classified/advert/201508075855920?price-to=1000&search-target=usedcars&page=1&maximum-age=up_to_10_years_old&make=ford&fuel-type=petrol&radius=1500&postcode=bt622hb&onesearchad=used%2Cnearlynew%2Cnew&maximum-mileage=up_to_80000_miles&sort=default&model=focus&logcode=p

Agree with this, don't go into more debt for a different used car. Save up and buy one for "cash", as soon as you have bought that one, start saving for either any repair bills or for in 3 years time when you are likely to need another new car.

Both car suggestions are good and cheap too.

bigjl

Some dealers can arrange finance for people with less than perfect credit.

This will be more expensive due to you credit history.

You are not being ripped off as if you had not got your credit problems you would be a better risk.

A cash sum with your old car as deposit might help you get financed on a three or four year old vehicle.

Though I would personally do as already suggested and get yourself something for a couple of grand.

Herzlos

stupid-fool wrote: »

...still have a poor credit rating.

...I need a reliable car for my job.

...

Your poor credit rating rules you out of a lease without eyewatering expense - don't even go there. Don't go near anything nearly new either or from a big dealer.

Generally, the cheapest car you can get is the one you already have - for the cost of a few months repayments on a new one you can get pretty much anything fixed. What have you got now and what's up with it?

Failing that, you can get pretty decent runabouts for under £1000. If you've got surplus cash you might be able to buy one outright or with minimal borrowing and then save your way up to something better.

I sold my last car for £500 and it had years of life left in it (I got a good deal on an upgrade, and the guy that bought it got a great deal, too).

WellKnownSid

Herzlos wrote: »

for the cost of a few months repayments on a new one you can get pretty much anything fixed. What have you got now and what's up with it?

+1

Getting something newer is no guarantee of reliability - people trade their cars in for a reason, and not always genuine... Sometimes better the devil you know.

Strider590

I'm in agreement with most of the above, debt is not the way to go.

I reckon I could just about afford a brand new Range Rover Sport (£60'000) on a finance deal with the current rates/deals, but I drive an 11 year old Vectra because the future is never certain, I have better things to spend money on and (IMO) only a fool would drop all their disposable income into an every day run around of a car.

I just don't care what people think, I don't care for flashing the cash, I want a car to get me from A to B, a park anywhere shopping tank and then my kitcar in the garage for the weekend blats.

scaredofdebt

Generally I agree with what's been said, ie avoid getting finance as it will cost more in the long run.

However, if you do a high mileage it may work out cheaper to get a ~2 year old car with a warranty compared to a banger that may need a lot of repairs. But for the average driver doing around 10k miles a year probably not.

bigjl

Another issue with a high value car on finance is that due to the value if something expensive breaks you really need to get it fixed.

There is a lot to be said for adopting a Bangernomics strategy for all things automotive.

There is also the other chain of thought which is to buy new or nearly new and keep it for the long haul.

As has been mentioned above, people do tend to trade a car in when a bill is looming.

Which is another reason to stick with ex lease vehicles.

A three year old car purchased over 48months on the strap with a contingency fund set aside from day one is not a bad idea. As long as you can make sure you don't spend the contingency.

It all comes down to disposable income.

You can get a decent 07/08 Astra for under £2k and at that point you will have a choice. Though Inwould stick to the petrol engines as older diesels are a pain, the 1.7cdti is not bad but the 1.9cdti was a pig when it was new so why take he risk?

You could also go for a 3 yr old Astra with £500 down and £1000 contingency. Borrow the rest (£4500/5000) over three or four years and the payments wouldn't be huge.

My most cost effective cars have all been bought with above average miles and full dealer history from Auction. Not Bangernomics for some but 3 yrs motoring in the last two cost me around £1500 in depreciation on each car.