Car finance after poor credit history.

AdrianC

The_grey_man wrote: »

Can we just stick to the question I asked please?

If reputable lenders won't touch you, then you're into the hands of sub-prime financiers. Frequently, they're tied up with the supply of extremely poor-value vehicles, too. Going down that route will just make your path out of debt even longer and more expensive.

As such, the question cannot be separated from your circumstances, because your circumstances are why you're asking the question in the first place. If there is some undisclosed aspect of your circumstances which further frames the question, then it would help sensible answers if you disclosed it. If, for instance, you need the vehicle for work purposes, and your employer dictates a minimum age of vehicle, then that is very relevant. If that's it, then I presume there's no alternative available, such as a company vehicle scheme - or perhaps a salary advance/loan?

AdrianC

The_grey_man wrote: »

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.

As you'll be only too well aware, vans are much more expensive than cars, age-for-age and condition-for-condition. Do you need a van? Would a large estate or a people carrier suffice?

Given that you're a mechanic, that just makes the buying-for-a-grand option even more sensible, since you have the opportunity to add value to a purchase. Buy something with a specific problem, fix the problem, use the vehicle. It needn't be a mechanical problem - how about copart or similar?

The_grey_man_2

AdrianC wrote: »

If reputable lenders won't touch you, then you're into the hands of sub-prime financiers. Frequently, they're tied up with the supply of extremely poor-value vehicles, too. Going down that route will just make your path out of debt even longer and more expensive.

Really? That's an aspect I hadn't considered. You make a good point about buying a cheap car and adding value to it, but the problem there is that I need a reliable car from day one in order to get to work, living in rural Cornwall means there is no other way for me to get there.

Maybe you're right, maybe I should think again about what I need, not what I want.I guess I figured that as I was going to change my car anyway why not get something a little bit newer and perhaps build a little credit score at the same time.

Maybe this is not the best option for me.

Thanks guys, I'll have another think about it.

AdrianC

The_grey_man wrote: »

but the problem there is that I need a reliable car from day one in order to get to work

But it doesn't have to be a pretty one. Just a roadworthy one. B'sides, if the disposal of your current van is going to add very little to the pot, then you've got until that dies to get the replacement ready, right?

Alternatively, find a bent car or van with the same mechanicals in good order, and fit those to your current van.

living in rural Cornwall means there is no other way for me to get there.

I understand that problem - I'm in rural Herefordshire.

maybe I should think again about what I need, not what I want.I guess I figured that as I was going to change my car anyway why not get something a little bit newer

Sorry to be brutal, but that's the kind of luxury spending that you cannot afford at the moment.

bigjl

AdrianC wrote: »

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.

Why?

As you need credit to get a credit history there is no option other than to bite the bullet and get whatever small amount of credit you can and use it sensibly.

As without showing a good payment history you are not going to get the low interest deals.

Paying off every month means interest paid is minimised.

I would advise against attempting to repair credit by buying a cheap car though.

Personally it would make more sense to buy something small and economical that is still under manufacturers warranty.

A small Hyundai like the i10 or a Kia Picanto aren't a bad idea. Free RFL, cheap servicing, cheap insurance and reliable.

If you have a loan of £3000 on a car costing £3500 or so then it could be several years old if you go for an Astra or Focus sized car and if it breaks after a year you are stuck with it, and have no option but to fix it.

Just my take on things.

The little Picanto I bought last month is over 4years and the manufacturers warranty will have a year left when the HP is paid off. Minimising any risk.


You can get access to sub prime lenders at many Dealers not just dodgy ones.

CarGiant use Advantage Finance and they also specialise in getting finance for Private Hire drivers, who often find getting competitive finance an issue.

I would obviously steer clear of any Dealer that offers "Guarantee Finance"

As AdrianC has mentioned they tend to stock over priced crap.

A good example of a large dealer that specialised in such high interest, over priced tat was CarCraft.

bigjl

AdrianC wrote: »

If reputable lenders won't touch you, then you're into the hands of sub-prime financiers. Frequently, they're tied up with the supply of extremely poor-value vehicles, too. Going down that route will just make your path out of debt even longer and more expensive.

As such, the question cannot be separated from your circumstances, because your circumstances are why you're asking the question in the first place. If there is some undisclosed aspect of your circumstances which further frames the question, then it would help sensible answers if you disclosed it. If, for instance, you need the vehicle for work purposes, and your employer dictates a minimum age of vehicle, then that is very relevant. If that's it, then I presume there's no alternative available, such as a company vehicle scheme - or perhaps a salary advance/loan?

CarGiant sell cars at the same price regardless of your credit worthiness.

The OP can apply online and get an answer within a few hours. Though they need to be prepared for Interest rates in the 20/30% APR range

Not a huge issue if you keep the spending to an absolute minimum.

CG also sell a small number of Vans.

Just ignore any of the upselling after the deal is done.

They tried for at least 10minutes to get me to buy an aftermarket warranty, which was pointless as it had over 5yrs Manufacturers Warranty left, he adopted the "what if the warranty has been voided?" angle.

I just laughed, as I had already checked it had been serviced in accordance with Kia requirements.


I also valued the car before purchase on WBAC, it was valued at £5500, I paid £5698 and nearby Kia dealers had the same car a year older for £6500.

I was happy with the deal and I have a car that will be used for learning duties for both my children whilst being used to drive to work by the wife.

46mpg average on first 2 tanks.

AdrianC

bigjl wrote: »

CarGiant sell cars at the same price regardless of your credit worthiness.

But are they good value compared to places whose raison d'etre isn't flogging sub-prime credit?

bigjl

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.

Borrowing as little as possible and getting yourself into a sensible low running cost vehicle will repair your credit, if you can afford the payments.

Just don't loan on an overpriced dog and be reliant on an aftermarket breakdown insurance type warranty.

I looked at this car

https://www.cargiant.co.uk/car/kia/ceed/HN62XNY

But no good for learner drivers as Insurance would be astronomical.

Mart34

Don't know if anyone has already mentioned or you've already tried but I have a bad credit history although I tried zuto who found a deal for me, and financed a car. Maybe give them a try.

The_grey_man_2

Mart34 wrote: »

Don't know if anyone has already mentioned or you've already tried but I have a bad credit history although I tried zuto who found a deal for me, and financed a car. Maybe give them a try.

Thank you mart this is the kind of response I was hoping for to be honest.

All the advice about whether I can afford it (I have worked out that I can comfortably afford it), reliability issues etc are not what I was aiming for.

I do appreciate that people are just trying to help me out, perhaps I didn't explain myself very well in my OP.