Car finance

Pas5256

After some advice as I've found a car I like for 14k but am recovering from a poor credit history, I'm now self employed (1yr) and earning near to 60k and I know I can afford the repayments but obviously it all goes on my credit history.....is there a company that someone could reccomend as I know that multiple searches can affect my credit score.
Clear score app is giving me a 460 score which I don't know if it is good or bad.

Any advice or company reccomendations would be good.

Thank you.

Grumpy_chap

Your credit score means very little, but Clearscore is out of 1000 max and the FAQ gives a guide as to what the various bands mean according to Clearscore:
https://help.clearscore.com/hc/en-us/articles/115005327469-What-is-my-ClearScore-credit-score-out-of-
460 is on the second rung of 5 rungs.

Far more important in the data behind the score and the accuracy of that data.

Why do you need a new car right now?
Could you keep whatever you have already and save to buy a car outright in a while along the road?
If you have to buy a car right now, are there more affordable options than £14k?
If you have to buy a £14k car right now, what finance is the Dealer offering? 
Taking any finance if you are considered "sub-prime" borrower will work out disproportionately expensive. 

Flight3287462

Stick with (or buy) a banger save up over say 6 months and buy the car for cash. 

[Deleted User]

If you can earn 60k in a year it shouldnt take long to save for a car. Being self employed I’d be very careful not to take unnecessary credit. 

The last pandemic caught a lot of people out and should be a lesson to us all. 

caprikid1

"Hi, 
My bankruptcy was filed against me on Dec 2015 so should be removed this Dec 2021, will that make much difference to my credit file score/report from Dec?
Thanks."

Don't like to judge but please think long and hard before starting this route again.

Ebe_Scrooge

Pas5256 said:

After some advice as I've found a car I like for 14k

"Like" is very different to "Need".  If you've got a poor credit history (ignore your fictitious score) you'll likely find it difficult to obtain credit at reasonable rate.  The sensible option would be to buy a decent used car for a fraction of that price (of which there are plenty available, even in the current climate), then look at upgrading in a few years.  By that time you should have had the chance to save up plenty to buy the car of your choice outright (the true MSE option) - or you'll have access to much more reasonably-priced credit if that's your preference.

Bigphil1474

OP, could your business buy a car, which you use? Best advice is above - get a cheap reliable car for now, save up for the car you want, then buy it. No debt hanging over your head if your fledgling business goes belly up. 

motorguy

Pas5256 said:

After some advice as I've found a car I like for 14k but am recovering from a poor credit history, I'm now self employed (1yr) and earning near to 60k and I know I can afford the repayments but obviously it all goes on my credit history.....is there a company that someone could reccomend as I know that multiple searches can affect my credit score.
Clear score app is giving me a 460 score which I don't know if it is good or bad.

Any advice or company reccomendations would be good.

Thank you.

I'm self employed also and the one thing i would say is, dont saddle yourself with a car payment as you cant predict whats around the corner.

Get yourself a runabout for now and when you've cash sitting then upgrade.

Brewer21

Earnings of £60k but how much have you spare, to spend or even save after your outgoings?
As others have said, wouldn't it be easier to save up and wait, or buy a cheaper car for now?

ontheroad1970

Bigphil1474 said:

OP, could your business buy a car, which you use? Best advice is above - get a cheap reliable car for now, save up for the car you want, then buy it. No debt hanging over your head if your fledgling business goes belly up. 

That could have all sorts of tax implications, benefit in kind etc, that would have to be interrogated for the BiK rate according to the environmental parameters.

motorguy

Bigphil1474 said:

OP, could your business buy a car, which you use? Best advice is above - get a cheap reliable car for now, save up for the car you want, then buy it. No debt hanging over your head if your fledgling business goes belly up. 

As per @ontheroad1970's comment, that would have significant BIK impact.

Any time i've looked in to it in the past, my accountant has said its more beneficial just to claim the mileage allowance for business miles covered, rather than try to put it through the business.

Exception to that would be a brand new electric car, which could be leased i guess, but that could be tricky for a "new" business with limited trading history.