Financing a car - post awful credit history

[Deleted User]

Hi guys, I have recently paid off a mass amount of small debts which I defaulted on from 3-6 years ago.

Handed back my car and bought a cheap run about for the time being, and I'm now looking to refinance a new motor, due to practicality.

My question is, what is a average time frame of me realistically applying and being accept on a brand new car on pcp/HP?

The last debt was paid around 3 weeks ago.

Thanks.

takman

Why do you want to take on more unnecessary debt when you have a bad history of handling it in the past?
Just save up what money you were using to pay off the debt and you get can a decent car for a couple of thousand pounds.

[Deleted User]

Hi, it's not that I was bad at handling it, but the fact my financial circumstance changed dramatically, no fault of my own, probably not a good thing to say regarding that, without knowing the full story.

But thanks for your input.

forgotmyname

Been there and learned my less that anything in life can happen.

Good money one day then months of just sick pay and bills you thought nothing of are now a problem.

So you get a loan for a car (which is likely to be at a poor APR) And next month or year your circumstances change again. So your back to square one.

Your credit file is 6 years long...

[Deleted User]

Sorry but I find that real hard to read? My credit file isn't 6 years, I said the defaults were between 3-6 years.

My credit file dates back over 15 years.. So I really dont understand your point here either?

I'm asking a question which I've had no answer to yet.

I'm not asking for financial advice or how to spend and use my finances.

My financial life is only going to get better and has done for the last year and a half.

Is there anyone out there willing to answer what I've actually asked? Sorry to come across blunt, but I don't understand why people can't answer the questions asked on these forums without having to explain some other answer, completely unrelated to the OP.

If I wasn't financially ready to do what I originally posted, I wouldn't of asked my original question.

[Deleted User]

They mean defultts and late payments stay on your file for 6 years - this is what lenders will see.

You say your financial life is only getting better - but what happened before?

You’re unlikely to get PCP for a while - 12-24 months maybe. Depends on how much you are looking to borrow.

[Deleted User]

That's great, thanks for actually answering what I've asked, my financea changed drastically due to a few personal circumstances changing in my life forcing me out of work for a period (which in turn led to me missing payments, due to low funds coming in).

My current workplace offers up to 1 year full pay on the sick, with sick days paid, as we're allocated hours we can use however we like + holidays, (only ever taken 1 sick day in my 12 years of working), and I'm not saying for one second that I'll never take one or many in my life.

But as I say, my financial life is only going to continue to get better.

takman

[Deleted User] wrote:

That's great, thanks for actually answering what I've asked, my financea changed drastically due to a few personal circumstances changing in my life forcing me out of work for a period (which in turn led to me missing payments, due to low funds coming in).

But if you had saved up an emergency fund and planned what you were going to do if you lost your job you wouldn't have had to miss payments.

[Deleted User] wrote:

My current workplace offers up to 1 year full pay on the sick, with sick days paid, as we're allocated hours we can use however we like + holidays, (only ever taken 1 sick day in my 12 years of working), and I'm not saying for one second that I'll never take one or many in my life.

But as I say, my financial life is only going to continue to get better.

So what happens if your workplace closes down/moves and you get made redundant?. No redundancy pay as you don't appear to have worked there long and you will be back in the same position as you were before being unable to afford your debt repayments.

This may not be the answer your looking for but the best thing you can do is save up for a little while and get a decent car for a few thousand pounds like i said before. Plus also start building up some savings for emergencies, you can't reply on sick pay policy as being sick is only one of many factors which can cause you to not be able to work as you seem to have found out before.

System

Your credit history is a rolling 6 years from today so your missed payments will slowly drop off

Eligibility for fianance relies on a number of factors.... outstanding debt, missed payments, available credit, electoral roll, job status, income, past dealings with the company you are applying with. Without knowing the full storey it is hard to say whether we can make an educated guess if you will be accepted or not

What other people are trying to do is to get you to think... 'is this necessarily the right financial choice at this moment in time?'. You've just come through a financial rough patch and maybe its time to think about if that same situation or an equally unforeseen circumstance could arise in the near future....maybe its best to hold onto the car you have and put away 3 months worth of salary in a savings account as an 'oh cr4p fund'....then maybe think about purchasing a newer car on finance.....last thing you want is to buy a new car then you lose your job and have to sell it at a loss

Candyapple

Some questions for you to answer:

1. What is your annual salary?
2. How much money were you looking to take out as a loan/finance for the car?
3. Please list all credit card limits along with outstanding balances.
4. Do you have any other loans / overdraft / car finance etc?
5. Do you have any late payments / defaults / CCJs?
6. Have you made any credit applications in the last 12 months?

Thrugelmir

[Deleted User] wrote:

But as I say, my financial life is only going to continue to get better.

The lenders perspective historically will be that you don't manage your personal finances well. The decision is based on data and is in essence credit profiling. This will catergorise you into a certain type of borrower. Without knowing you at all. Three weeks post settling your old debts , you wish to finance a new car. That in itself says volumes.

Time heals as they say. Not opinions, views or promises.