Car PCP ending and want to keep - But there is a catch...

cymruchris

If the difference in value is so big - would it be worth looking at a slightly higher rate loan secured on the vehicle itself- and then setting aside as much as possible to pay it as early as possible? (Making note of how they calculate interest and repayment of capital). The trouble would be that in paying a loan - and trying to save - would take so long to raise the £21k you need, you'll have probably paid an arm and a leg in interest. 

MinuteNoodles

Floridamad101 said:

I have a car on PCP ending soon and I want to keep it.
The problem is :  I cannot get a personal loan as the amount is too much for me afford (According to the bank). The amount I am paying is over £600 per month and never defaulted my credit score on Experian is 990 (excellent).
I have tried to get a car loan from Lloyds but again they will only deal with a dealer not a private sale neither will they clear finance and also tell me I cannot afford MY OWN CAR!!!!. 

They're right, you can't. If you could have afforded it you'd have paid for it in cash or you'd have the money to pay the balloon payment and you've neither. Being able to afford monthly repayments is not the same as being able to afford something. As has been mentioned the reason they won't lend now is because your income won't support both sets of finance and they assume you'll either use the money for something else or re-use the cleared credit and dig yourself in a deeper hole and they assume this because of the sheer number of people who do.

Floridamad101

Thanks Guys for your input. I know what you are saying but the reason I want to keep it is I have only done 16000 miles in total and I took a PCP with an annual mileage of 15k per year giving me 60k at the end of the PCP. So I would have just let it go back back with 60k on and had another. At 5 years old the £335 excess on the road tax disappears then only £140 per year not £475!!! 
Anyway I've sorted it.
Got a bounce back loan at 2% with no interest and nothing to pay for the first year. So using the £600 per month that's £7200 off the 20k leaving £12800 at 2% £356 in year 2 then  £5956 plus £119.12 10 months at £600 Hey presto a cheap car.
34 months credit for around £450 (After adjustment on interest on outstanding balance etc. Cannot be bothered to work it out and write it back 34 times. it's near enough)
Thanks for your help guys.
Do any of you know who are passing on the 12.5% VAT reduction theme park tickets? Off the Florida so it's a good saving. It needs to be UK registered so the VAT is UK paid not US as it's only 6% ish anyway.
Don't know where to post this question as the main thread headings don't seem to be relevant. 

Grumpy_chap

Glad you got it sorted.

Floridamad101 said:

Do any of you know who are passing on the 12.5% VAT reduction theme park tickets? Off the Florida so it's a good saving. It needs to be UK registered so the VAT is UK paid not US as it's only 6% ish anyway.
Don't know where to post this question as the main thread headings don't seem to be relevant. 

Cutting Tax forum?