buying a car with a poor credit score

20aday

kirstyd4 wrote: »

The problem is is that I don't have 1-2k so still need to borrow money. The bank were offering me a poor Apr. So looking to see if there are other options than a personal loan.

More often than not the low APRs you see quoted are typically for amounts between £7,500 and £15,000.

Am sure MSE say it's typically "cheaper" to borrow £1-£2,000 on a credit card. Of course that'd depend a. on your credit history and b. what kind of fees you'd have to pay for using a credit card when buying a motor.

Gaz83

If it's taking you an hour to do 25 miles, it must be a town / city job - could you use public transport while you save up?

SeanG79

Depends what rate you were offered and what you consider bad?

Usually loans under £7.5k come at a higher rate than the advertised rate.

Dealer's car finance is available but I would expect that to be around 9.9%APR on a used vehicle

onthefencepost

I bought a Volvo S60 D5 for under 4k 2 years ago. One owner from new (70 year old) full volvo history had recent belts etc only done 48K. Yes its 10 years old but its like new.

Ive since covered 40K maybe more in driving in the uk and abroad and apart from regular services, brakes and tyres its been cheap as cheap!

Im amazed how many miles a tank i get! almost 700m miles on my average commute / drive.

Higher mileage ones can be had for £1500 all day ive seen some as cheap as £700 recently good motors!

Clive_Woody

Have you checked your credit files to see what is on there? Have you missed or late payments, do you have CCJs, high level of unsecured debt, etc?

If you have just completed on a mortgage it may be that lenders are reluctant to offer you more money...at least not as their representative rate as they see you as a higher risk.

Your best bet might be to try your own bank for a smaller loan as they will know how you have managed your account with them.

silverwhistle

kirstyd4 wrote: »

Even so, I just bought my first property which bled my savings dry... so even if I were to get a less expensive car I would still need to find the cash from somewhere.

I remember doing that, and in fact bought a house before ever buying a car. It was a sludge coloured Marina, which older readers will remember. Bought for a £100 and I sold it for £70 ten months later. The friend I bought it from helped with a few repairs, but it never actually left me stranded. These days you get a lot more for your money.

Do you actually have a runaround at the moment? If so if I were you I'd keep using that whilst you save. Put by a few quid for if it does let you down so that you can taxi/public transport to work.

An additional personal loan of £9K seems a big commitment at the moment anyway, whatever the cost. My current car is a 2009 Hyundai bought some years ago for £4k, and it'll be taking me skiing again this year. They may be more complicated than my Marina, but cars are a lot more reliable these days!

foxy-stoat

Get a credit card with a money transfer option and buy a Civic 2.2d for £2500 - that will see you right for a few years until you save up enough....or keep driving what you have and save up for another car.

I wouldnt be looking to borrow £9000 for a car if I had just bought my first property with no savings.

parking_question_chap

Im confused by your logic.

You seem to be saying, "well, I dont have any savings so I might as well borrow £9,000+ rather than a small amount".

Makes no sense to me.

Ebe_Scrooge

kirstyd4 wrote: »

I was hoping to use a personal loan of £9000 to contribute to the price of a nearly new car.

Blimey, if £9K is only a "contribution", how much are you planning on spending ???

Seriously, you can get a good used car, from a main dealer with full warranty, for a heck of a lot less than that. My current car ( Peugeot 307 HDi ) cost me, if I remember correctly, £4500 from a main dealer. 4 years old when I bought it, with 45,000 on the clock. It's now done 170,000 miles, is 10 years old, gives me 50 mpg ( and I drive it hard ), and I've not spent anything on it apart from routine maintenance and consumables. OK, I've now given it the kiss of death saying that LOL ! But really, you can get a very good reliable car for way less than £9000.

NOVAMET21

Maybe buy a decent car from the dealer and take out 1 year warranty. Everyone kept saying Honda has bullet proof engine so I bought a brand new Honda back in 2014 in finance with 0% APR costing me £188 per month. So far nothing wrong apart from faulty radio where sometimes there is no sound. I did buy it with 5 year warranty so I will get it fixed in next servicing. I think the new models are expensive though. I have had a bad experience with second hand cars for a long time where I would spend in average £200 per month with the car I had before Honda. Each month there was a problem and I think I purchased it when things were going wrong. But the others said there are decent cars for £4K and take out 1 year warranty.