Car loan straight after BR (poss. ED)

Toad

Hello all,

I sent my early discharge questionnaire back recently and by my calculations, if all goes well, I could be discharged in November.

During BR, I've been running a dog of a car that has got so bad that I fear it's a danger on the road and it's going to take more than modest repairs to keep it safe. It certainly won't be an economical long term solution.

After much deliberation, I've decided that the only way to go is to try and obtain a small loan, say around £3000 to replace this car. I have already promised myself that this will be the ONLY loan I have and I will never have a credit card again.

I've heard different stories on such loans, from various locations. I'm told by another website that netcars will offer a loan at 16.9% which is great - that's less than standard auto credit anyway. I have also seen some loans at 177% !

Has anybody else tried to get a loan as soon as they are discharged? How did you get on?

I will of course be following the tips I've found re checking my credit record etc)

Thanks

Toad

rog2

To be honest, Toad, you are going to be a 'sitting target' for all of the 'sub-prime' lenders - we all are, so you are not alone.
Be EXTREMELY carefull - many finance Companies 'offer' loans to discharged bankrupts at attractive 'typical' interest rates when, in reality, the 'actual' rates are much higher.
Many of these Companies will also 'Front Load' interest and charges, making it difficult to get out of any agreement and often with no advantage for early repayments.
Again many of these 'Companies' are very quick to resort to the 'heavy handed approach' should you encounter the slightest problem with your repayments.
I'm not saying that you WON'T get a good deal, if you shop around, JUST BE CAREFULL.

Lizzibuff

Toad, Could you not get the loan in someone else's name - ie partner, family, close friend and you just make the payment?

Toad

Hi both,
Yes, I've heard about all the dodgy things in the sub-prime like being locked in with higher penalties. I kind of expect it really. As for heaving handed so long as they stay within the law that's fine and expected. Thankfully, I expect to be in a state to not have any problems or have the loan secured on the car so that's ll they take.

Lizzi, I can't really get the loan in another name, my partner does not work so I doubt they would give her a loan. Unless I can be a guarantor ?

Tony