Car Finance- stay at home parent

Mjf83

Sorry if this is in the wrong part of the forum.

3 years ago I took out PCP finance on a brand new car. I was in part time employment with a decent salary and credit rating. A year into this agreement I decided to take voluntary redundancy as it would give me the opportunity to spend more time with my young children before they started full time school. Over the following 2 years I have continued to pay my car finance on time and in full every month.

My agreement is due to end in August and I have 3 options, return the car, part exchange for a new vehicle or pay the balloon payment and keep the car. I need a car and can't afford the balloon payment, so I'm wanting to part exchange the vehicle with the same finance company that I'm already with. My question is, will they take into account that I can obviously afford the finance on a car as I've been paying it for the last 2 years without being employed, or will they simply look at the fact that I have no personal income (have a household income) and refuse to finance me a new car?

[Deleted User]

It depends on their lending criteria, whether they carry out further checks and how they determine income.

System

If you have a working partner could you take out finance as joint? It certainly would solve the "no salary" issue.

Sea_Shell

I would have thought that a new agreement would mean a new application, with your current information being used. So yes, you will probably struggle to get finance (for anything) with no income.

The next question would obviously be, do you need another NEW car. Do you have any savings (redundancy payment) that you could put towards something 5+ years old maybe?

Can another member of the household (partner/spouse) not help contribute towards it, or finance it?

chanz4

If Barclays they will say not affordable now

Mobeer

Can you finance the ballon payment? At a guess if you can borrow a lot for a new car you can borrow less for the current one.

Brock_and_Roll

The op says she "needs a car" - fair enough.

The emphasis should be on the "A". With no income it would be madness to take a new car on finance even if this were possible and watch 25% of the value disappear the day it is driven out of the showroom.

No reason whatsoever why cannot get a clean, safe and reliable car for £2k or so at the most.

foxy-stoat

Hand it back and get your partner to buy you a cheap secondhand car, when you have an income to support another PCP deal get one of them....or get your partner to get a loan for the balloon payment and pay him the money you would use for the PCP deal you have been paying.

Socajam

foxy-stoat wrote: »

Hand it back and get your partner to buy you a cheap secondhand car, when you have an income to support another PCP deal get one of them....or get your partner to get a loan for the balloon payment and pay him the money you would use for the PCP deal you have been paying.

I hope the partner refused to do this.
Get a second hand car as someone suggested, when you are able to work, return to your previous agreement with your own money.

gycraig_2

"With your own money" I don't know what sort of relationship you have but if she's given up work to look after the kids there shouldnt be his or her money.

As long as the household can afford it why shouldn't she have a nice car, if I earn 60k a year and wife looked after the kids why shouldn't she have a pcp car ?