Car finance after poor credit history.

The_grey_man_2

Good morning everyone, I am looking for some advice from you all.

I would like to buy myself a second hand car on finance but I'm worried about applying because of my credit history. I want to borrow about £3000 and my income is good (£27k/yr) with low outgoings.
The reason I am worried is that I approached my own bank with a similar request about 12 months ago and they basically said don't even bother applying.

I figured that a secured loan against the car would be my best bet, I was wondering if you could advise? Have you done this and if so how was your experience?

Anthony



P.S. My credit history is quite poor really, I was involved in a business venture that went sour just before the crash and had to declare bankruptcy (at least 9 years ago now). I have since been trying to repair the damage with a high interest credit card. I manage it quite well, often paying it off in full each month but admittedly over the last few months I have only been paying the minimum, but it's not maxed out.

londonTiger

If you live frugally it shouldn't take long to save up £3K surely??

The_grey_man_2

londonTiger wrote: »

If you live frugally it shouldn't take long to save up £3K surely??

Of course that is very true but my current car won't last another twelve months. Also I was hoping that the finance deal would help to rebuild my credit file.

And finally I must admit that having a regular committed payment works better for me than saving. My self discipline has it's limits.

AdrianC

Trying to repair a bankruptcy using a high-interest credit card. My head hurts.

You need to be on the Debt-Free Wannabe board, not here.

And you don't need to be spending three grand, on credit, on a car. Spend a grand, or less, but wisely. Then maintain it properly, and you won't need to throw it away.

londonTiger

The_grey_man wrote: »

Of course that is very true but my current car won't last another twelve months. Also I was hoping that the finance deal would help to rebuild my credit file.

And finally I must admit that having a regular committed payment works better for me than saving. My self discipline has it's limits.

whats wrong with your current car? In your situation I would look to fix the car unless it's a £500 deadbeat that has head gasket, exhaust, gearbox, rusting issues all over in which case I wouldn't blame you for wanting to start off on a clean slate on a newer car.

The_grey_man_2

AdrianC wrote: »

And you don't need to be spending three grand, on credit, on a car. Spend a grand, or less, but wisely. Then maintain it properly, and you won't need to throw it away.

You have made quite a few assumptions here Adrian. I appreciate that my post doesn't give you much detail but that doesn't mean you should jump to conclusions.

I was hoping to get a little non-judgmental advice on these boards. I do appreciate what you are saying about the debt-free boards but that is a separate issue.

Can we just stick to the question I asked please?

gilbert_and_sullivan

I'd be avoiding credit/loans whatever you call it like the plague after your experience.
£1000 buys a perfectly adequate car, especially if you avoid the ones associated with image.

Let the money lenders and their acolytes starve, now that would make a reality show worth watching, seeing the love of trophy wives vanish out the door with them as poverty comes through a mock tudor door in Sunningdale.

londonTiger

TGM how long will it take you to save 3 grand? you said you're on 27K with little outgoings, so assume you can save 1/3 of your takehome (£1,787.27) say £600 per month.

5 months you'd have saved £3K which is shorther than the 12month length of life you've given to your current car.

The_grey_man_2

londonTiger wrote: »

whats wrong with your current car? In your situation I would look to fix the car unless it's a £500 deadbeat that has head gasket, exhaust, gearbox, rusting issues all over in which case I wouldn't blame you for wanting to start off on a clean slate on a newer car.

My current car is actually a van with astronomical mileage and a list of age related problems that grows each year, making it not just unreliable but actually quite expensive to get through it's MOT each year. Basically the turbo is definitely on it's last legs and I suspect the bottom end is starting to go.

I am a mechanical technician and quite capable of carrying out quite major work in order to keep it going, but there comes a point when doing so no longer makes sense.

Oh and as for £500, well if I got that for it I'd be robbing someone! :rotfl:

The_grey_man_2

londonTiger wrote: »

5 months you'd have saved £3K which is shorther than the 12month length of life you've given to your current car.

Ok 12 months is being generous. let's say another three months and I'd be suprised.

The_grey_man_2

londonTiger wrote: »

TGM how long will it take you to save 3 grand? you said you're on 27K with little outgoings, so assume you can save 1/3 of your takehome (£1,787.27) say £600 per month.

5 months you'd have saved £3K which is shorther than the 12month length of life you've given to your current car.

You do make a good point though Tiger. When you put the figures down 'on paper' like that saving does seem like it would take less time than I initially thought. Maybe I'll reconsider that option.