Can’t get a loan but need car for high mileage

Legacy_user

Just wanted some advice on what’s best to do please. I do approx 30k miles a year for my job and my old car is on its way out. I don’t have the best history so I think finance is going to be my only option?

Somebody suggested getting a finance deal on a car with low mileage and then swapping it after a year for another financed vehicle before the mileage goes above average. Not sure about this? Cars aren’t my thing but I do need something reliable, economical and fairly modern as it’s essentially my office as well as my transport. Somebody else suggested getting GAP insurance to cover any negative equity? Is this true?

I can’t lease or do a PCP deal with a dealership as my credit is poor. I feel like my only option is to swallow the large APR on a finance deal. Are their any other options I could consider? My employer pays me an allowance for a car.

[Deleted User]

How much do you save each month? This will give you an idea of what sort of payments you may be able to manage, and what your options may be.

And how much in total do you have saved to put towards the car?

What are the negatives in your credit history? If you can't get a PCP, you will probably struggle to get anything else, as they have the car as security.

System

I!!!8217;ve been approved by a finance company, the APR isn!!!8217;t great though. I know I wouldn!!!8217;t get approved by a mainstream lender or the bank though. I can afford £200-250 a month for a payment.

BrassicWoman

but how much do you SAVE each month and what deposit have you managed to save frome the car allowance?

System

You can get a very decent motorway mileage muncher for £5000-£8000 because people tend to not want mid sized cars with 2 litre engines. Don't be afraid to look at cars 3 years old with 70,80,90,000 miles on. As long as they're one owner and full service history they'll easy do that again and things like clutches etc won't be an issue because they've spent most of their mileage sat on a motorway in one gear.

Ford Mondeo, Vauxhall Insignia, the usual rep mobiles.

foxy-stoat

Save £250 a month for 6-7 months and drive your current car until then. Buy a Honda Civic 2.2d for around £1500 and keep saving the £250 a month until you have a few thousand saved up and buy a newer/less mileage car and keep doing that.

PeacefulWaters

My employer pays me an allowance for a car

What did you spend it on?

What did you spend their mileage rate on?

flower77g

Another option might be to see whether you would be accepted for a money transfer credit card with a longish period. For example (MBNA, Tesco, Virgin) give 32 - 37 months interest fee for a one off fee of 3.45 - 3.94%. Transfer money from this card into your current acount; buy a used car for cash up to whatever amount the card issuer will allow. Never use this card for anything else; pay a fixed amount back to the card each month, making sure the amount paid off each month is sufficiently high to cover depreciation.