PCP Bad credit

gemred_21

Hi, wondered if anyone could advise. We are needing to purchase a car and PCP is the only way we can finance one. We’ve always had PCP and ended our last agreement last week and settled in full, no missed payments etc. My credit score is the lowest and today I was refused PCP with Alpheria for a car.

My question is, is there a company who would give someone with really bad credit PCP for a car? 

Thanks I’m advance 

MattMattMattUK

gemred_21 said:

Hi, wondered if anyone could advise. We are needing to purchase a car and PCP is the only way we can finance one. We’ve always had PCP and ended our last agreement last week and settled in full, no missed payments etc. My credit score is the lowest and today I was refused PCP with Alpheria for a car.

My question is, is there a company who would give someone with really bad credit PCP for a car? 

Thanks I’m advance 

Your credit score is irrelevant, it is a number made up for marketing purposes (read the sticky on credit scores). You need to establish why lenders are unwilling to lend to you, do you have missed payments, a CCJ, high debts or was/is affordability an issue?

Also, is PCP the only way to get a car, or do you mean PCP is the only way to get a new/nearly new car, when you could buy a cheaper second hand car using savings or a loan?

At the moment lenders are understandably cautious, many people are unable to access additional borrowing at the moment and the best solution is to adjust to that by borrowing less.

The_Real_Cheddar_Bob

gemred_21 said:

Hi, wondered if anyone could advise. We are needing to purchase a car and PCP is the only way we can finance one. We’ve always had PCP and ended our last agreement last week and settled in full, no missed payments etc. My credit score is the lowest and today I was refused PCP with Alpheria for a car.

My question is, is there a company who would give someone with really bad credit PCP for a car? 

Thanks I’m advance 

Did you give the car back rather than financing the balloon payment? Or was that also an issue for you?
I could be wrong, but I'm under the impression there has been a huge increase in VT's since covid. This might make PCP a harder deal to get. 
They type of car and the amount will have an affect also. 

Ebe_Scrooge

I think MattMatt has hit the nail squarely on the head there.  The fact that you're talking about PCP tends to imply that you're looking at a new-ish car.  Take a look at your own signature : "I will stop spending on things I don't need" - you'd be far better off buying a decent older car for a fraction of the price.  Of course, if there is something in your credit history that's a cause for concern to lenders, then you'll struggle to get a loan just as much as PCP, but as you'll be looking for a much lesser amount you may be able to get something.

[Deleted User]

If you settled in full, do you not have a car that you have used and looked after for 3 years? So why not keep that?

JamieJ89

My credit record isnt very good at all so I was surprised I was offered car finance via carfinance247 - who are a credit broker. My finance was placed via moneybarn - of course my interest rate isnt so great but I was relieved to have been able to source finance.

The_Real_Cheddar_Bob

Deleted_User said:

If you settled in full, do you not have a car that you have used and looked after for 3 years? So why not keep that?

PCP comes with a balloon payment more often than not. If it was a brand new motor, 50% of the car would be left to pay after 3 years. 

Regarding the not spending money on things you don't need, it is all relative. Life can be short so if the OP wants to explore financing then so be it. I've been there but I am in a different place now. That said, the draw of credit can eb son strong for so many, it is sometimes really hard to ignore. 

Still, looking at an option for a motor that perhaps isn't highly costly, if your situation allows, might be one answer

[Deleted User]

The_Real_Cheddar_Bob said:

Deleted_User said:

If you settled in full, do you not have a car that you have used and looked after for 3 years? So why not keep that?

PCP comes with a balloon payment more often than not. If it was a brand new motor, 50% of the car would be left to pay after 3 years. 

Regarding the not spending money on things you don't need, it is all relative. Life can be short so if the OP wants to explore financing then so be it. I've been there but I am in a different place now. That said, the draw of credit can eb son strong for so many, it is sometimes really hard to ignore. 

Still, looking at an option for a motor that perhaps isn't highly costly, if your situation allows, might be one answer

What's that got to do with my comment? It's also wrong...
OP said they ended their last PCP and settled in full last week - settled in full = paid balloon, have their car. So why buy a new one?
On a 3-4 year deal, it's more than possible to have paid more than 50% by year 3 particularly on a 0% finance deal. 
The reason people commented on spending stuff they don't need is that the OP has that in their signature along with a huge history of debt problems so starting a new PCP deal if they have a car is daft

[Deleted User]

JamieJ89 said:

My credit record isnt very good at all so I was surprised I was offered car finance via carfinance247 - who are a credit broker. My finance was placed via moneybarn - of course my interest rate isnt so great but I was relieved to have been able to source finance.

Not great? 14.9% - 48.9% APR to finance a depreciating asset! Not very MSE. 

The_Real_Cheddar_Bob

Deleted_User said:

The_Real_Cheddar_Bob said:

Deleted_User said:

If you settled in full, do you not have a car that you have used and looked after for 3 years? So why not keep that?

PCP comes with a balloon payment more often than not. If it was a brand new motor, 50% of the car would be left to pay after 3 years. 

Regarding the not spending money on things you don't need, it is all relative. Life can be short so if the OP wants to explore financing then so be it. I've been there but I am in a different place now. That said, the draw of credit can eb son strong for so many, it is sometimes really hard to ignore. 

Still, looking at an option for a motor that perhaps isn't highly costly, if your situation allows, might be one answer

What's that got to do with my comment? It's also wrong...
OP said they ended their last PCP and settled in full last week - settled in full = paid balloon, have their car. So why buy a new one?
On a 3-4 year deal, it's more than possible to have paid more than 50% by year 3 particularly on a 0% finance deal. 
The reason people commented on spending stuff they don't need is that the OP has that in their signature along with a huge history of debt problems so starting a new PCP deal if they have a car is daft

You make a good point which I overlooked. If they settled in the traditional context then yes they would have a car, one with a value for a deposit for new one, if that was what they were looking for. 
Perhaps the op would like more than one car? 

[Deleted User]

If you look at his post history, 2 years ago, they were struggling with just £87 a month after bills, along with 38k on CC and 13k on loan (which was presumably what they paid off recently) yet is desperate to get into even more debt with another PCP deal. Can't see it ending well.