low credit score car loan

sal-ad_daze

Hi all, hope you can help, My son (28) has just had an accident and written off his car The only way he can afford to replace it is on finance and there we run into problems!
He's looking at only 3k over 3/4 years but because he's self employed with an income of 10K over the year but if he has his car that income will increase (he's in events). The bank say no because all his income doesn't go into the bank!!!! Any ideas please? TY

[Deleted User]

Tell him to try an eligibility checker.

It doesn't matter where he pays his income into as long as he can prove it.

It also doesn't matter what his credit score is. Only his credit history.

madvicker

Was there no insurance payout from the write off? Is it possible he could set his sights on a lower value car for £500-£1000? A reliable model would give him a decent runaround and not put him in as much debt for the next 3-4 years. If his income will increase as a result of having a car again (how much of an increase?) it will mean he can save up faster as well.

I assume by your last paragraph, that he tried to apply for a loan directly with his own bank? Where else has he looked and has he tried using an eligibility checker such as the one on here?

Sorry for the 20 questions, but by answering them it will begin to inform him, you, and us what the best course of action might be.

sourcrates

There are car finance companies out there who will lend to most people with an income, they advertise everywhere, usually on social media.


The thing is, they may initially approve the loan, and tell you to look for a car, then the problems start, there criteria for lending on a specific vehicle is quite strict, if its too pricey, its a no, too much mileage for the price, its a no, its a devious practice, but they encourage you to borrow more, so you can afford that shiny newer car, which is around list price with a nice low millage, just 8 grand more than you wanted to spend.


There are plenty of older model cars out there under a grand, that still have lots of life in them, i would encourage him to start saving.

sal-ad_daze

He really needs the car now, he's a DJ and events manager and has been paying out hundreds per month in taxi fares! He'd only had the car a short while ( a cheap run around bought for cash as mentioned above), the AA man and the garage bloke told him it wasn't worth claiming on the insurance as it would cost him more in the long run. We've tried the tools on here and no luck! Really don't know what to do next! His income is a mix of pay into the bank an cash payments so the bank say that he can't prove his monthly income as it doesn't all go straight into the bank. We've had the 'approved' scenario which brings us to where we are now! I just want to help as best I can but I can't take the loan for him. Don't know where to turn next.

[Deleted User]

sal-ad_daze wrote: »

, the AA man and the garage bloke told him it wasn't worth claiming on the insurance as it would cost him more in the long run.

Perhaps, but it seems the short term is more important at the moment.

macman

Wouldn't a hire car short term be better than taxis?

Caz3121

sal-ad_daze wrote: »

His income is a mix of pay into the bank an cash payments so the bank say that he can't prove his monthly income as it doesn't all go straight into the bank.

has he got his SA302s to prove his SE income? how is it taxed?

foxy-stoat

Caz3121 wrote: »

has he got his SA302s to prove his SE income? how is it taxed?

You think its taxed? If he earns £10K total then it isnt taxed....if he earns more than £12K and he declares it all he still probably wouldnt pay tax on it due to his taxi expenses on getting to the gigs.