Car Finance

trenton

I am in a need for a new car.
I wanted to see if any Car dealer or higher purchase profession can explain to me how important is the deposit.

My Credit Score is between poor to average due to I had a defaulted credit card what I paid off already.
If I put up 50% of the car price as a deposit would it allow the underwriter to accept my application?

Thank You

Richey_

You also have by reading your posts a defaulted mobile phone account and a recent loan application.

Just yesterday you wanted to change your name and try bank fraud.

If I was you, with such a high deposit I would repay all defaults in your credit record. Stop applying for new credit for now. Give it a couple of months for your defaults to be showing on credit records as satisfied and then try "soft" searches from zero percent credit cards, loan comparison sites etc and then go for the ones that it says you are most likely to be accepted for. If you did try bank fraud like you suggested you may, I'd also check you do not have a CIFAS marker.

Either that, or just buy a sensible priced car with the 50% deposit you have saved.
Time will heal your credit record. Also if you want like you said yesterday a mortgage in 2 years time, Especially with 2 defaults on your credit record, I'd probably not be taking out more loans until after as they will affect your mortgage affordability on top of the defaults and probably limit what you can borrow.

trenton

You also have by reading your posts a defaulted mobile phone account and a recent loan application.

Just yesterday you wanted to change your name and try bank fraud.

If I was you, with such a high deposit I would repay all defaults in your credit record. Stop applying for new credit for now. Give it a couple of months for your defaults to be showing on credit records as satisfied and then try "soft" searches from zero percent credit cards, loan comparison sites etc and then go for the ones that it says you are most likely to be accepted for. If you did try bank fraud like you suggested you may, I'd also check you do not have a CIFAS marker.

Either that, or just buy a sensible priced car with the 50% deposit you have saved.
Time will heal your credit record. Also if you want like you said yesterday a mortgage in 2 years time, Especially with 2 defaults on your credit record, I'd probably not be taking out more loans until after as they will affect your mortgage affordability on top of the defaults and probably limit what you can borrow.

Hi, Thanks for the reply. no I am not going to commite fraud as after going through the details with my lawyer it is clear to me it is fraud. I just tought by using new name the credit clues will be automatically lost.

Number two, it is clear to me I have to wait out the 6 years, after reading through the sensitivity of underwriters.

Number 3, I am still not sure how important is deposit in terms of car finance?

Thanks

Richey_

Trenton, I told my story on here - https://forums.moneysavingexpert.com/discussion/5405520

You can get a mortgage with defaults, just make sure your finances are completely good other that the default. You don't need to pay for Solicitors, go through complaint procedures first, get a final response then escalate it to the ombudsman

trenton

Richey_
Thanks for your link. I read your story. I can wait with the mortgage i am not rushing and I have never been a big credit user, so that would allow me to save up 80% of the house price.

Thanks for your Post.

However I am still waiting for a car salesman, broker or underwriter to explain how significant the deposit in terms of Higher Purchase.

glennstar

trenton wrote: »

However I am still waiting for a car salesman, broker or underwriter to explain how significant the deposit in terms of Higher Purchase.

Trenton, I'm probably missing the obvious but, the larger the deposit the bigger the equity gap in the secured asset and the lower the risk to the lender. Couple that with a lower total repayment which then influences your affordability... unless you are asking a more specific question about what the difference is between a 10% deposit and a 30% deposit, for example, in which case ask that question.

The situation as I understand it is that you would need to speak to the company selling you the car (and base the conversation on a specific vehicle). If it's a group then they will have deals and targets and influence with the mainstream lenders such as Black Horse and Santander so can probably tell you there and then what the costs and outcomes are. If your credit history looks weak then they may pass you to one of their manual Brokers (which may well be the same people the independent car retailer will be using to arrange all their finance) who can influence the situation further (likely with the same set of mainstream lenders). The point being, all you have to do is ask them and they will readily tell you as (depending on the Car Retailer) they will likely be dealing with your demographic on a daily basis will know exactly what the outcome will be.

Bear in mind there is very little profit for car dealers shipping the metal and most of the time they are making money/commission from selling finance, warranties, paint protections, etc, etc. As a result don't present the appearance of a tire kicker or you are unlikely to make much progress.

burlington6

I don't think they would lend you the pen to sign the paperwork