Car loan several years after bankruptcy

Legacy_user

Not sure if this is the right message board so point me in the right direction if not...


My old Peugeot was scrapped recently so I need to finance a new (used) car. Looking at a Focus or i30 maybe, probably up to £7-8k.



I went through a personal bankruptcy at the end of 2011. It was without complications and I was discharged a year later. My property was repossessed a year after that (not unhappy about that but that's another story). We've rented our home since.



So, what I need to know is - what is the best way of getting a car loan in my position? Which companies are a safer bet to apply to? I'd prefer the loan to be unsecured if possible but I don't have a major problem securing it on the car if it's the difference between getting it or not.

Situation:

• Self employed, taxable income between about £38k and £45k (it varies)
• Rent our home
• No debts except for a couple of hundred quid on the credit card I've been using to build up my rating (Aqua card). There's never a balance on there for more than a month or two. This will be clear by the time I apply for car finance. I also have my business insurance on pay-monthly which I know technically counts as credit.
• Credit score with Experian is now 995 out of 999. Clearscore is 478 out of 700. Can't log into Noddle this morning to check the other one but when I last checked it looked decent.

Not sure how this works noawadays, but a loan where I can make the odd overpayment without a penalty would be required.

Any advice would be very welcome!

wgl2014

I'm no expert but if your credit score is now decent then a low Apr personal loan should be an option and us likely to be the best value.

I would suggest considering if a cheaper car could suffice, you can get something decent for a couple of thousand that could avoid the need for a loan.

System

Thanks but I want the reliability of something a bit newer. My work is such that a car failure would present a very large and immediate problem so I'd just prefer to mitigate as much as I can. Plus the loan rates above £5k seem much better.

danny91

messedupmoney wrote: »

Thanks but I want the reliability of something a bit newer. My work is such that a car failure would present a very large and immediate problem so I'd just prefer to mitigate as much as I can. Plus the loan rates above £5k seem much better.

If you want reliability then I’d steer clear of a focus. An ecoboost focus anyway. There’s much, much better cars out there.

System

The bankruptcy and repossession will show on your credit file for 6 years from the date they were first registered so you should be able to get car finance providing you meet the lenders criteria

System

The other option is to use some/all savings to buy it outright - tbh I'd much prefer to do this and not have the debt and that start building the savings again. Obviously it means setting my sights a bit lower in terms of the car.


What used car would anyone recommend in the £3.5-£5k bracket? Needs to a Focus/i30/307 sized hatchback and .... not diesel.

Craig1981

against some peoples advice, i have always had Opel/Vauxhall for past 20 years. I have never had any issues with them (Corsa, Astra, Vectra Insignia). cheap on maintenance as well.

you can get a decent astra at your budget

System

Yes, did look at an Astra recently when my wife was buying her Fiesta (her Peugeot died within a week of mine!). I had one before as a courtesy car - drove well but found it a bit thirsty and the dash control system overly fussy.

It's on my list as a possible though.

pinkshoes

Given your income, surely it wouldn't take you long to save that amount?

You could get a cheaper car in the mean time.

Cheap doesn't always mean unreliable. I bought a £1k fiesta and got 3 years driving out of it with no issues.

I now have a battered Cmax but mechanically sound, which has done another 3 years.

Just do your research carefully.