Car HP with CCJ 2 July 2022 at 10:54PM in Loans 5 replies 223 views

david.richards27

Hi Guys

Just wondering if anyone has and experience/comments on the following:
Looking to get a second hand car and use some savings and the rest on HP.

My credit score is not fantastic (low fair) and I have a CCJ from a year or so ago.

The deposit is likely to be approximately 50% of the vehicle cost.

I am wondering if anyone has experience or knowledge about the likelihood of being accepted by Black Horse Finance based on my situation?

Many thanks 
David

Aran76

I think it's very unlikely that you'll be accepted by anything other than the specialist lenders that will charge very high rates.

Why don't you buy a lesser car with your savings?

Grumpy_chap

You have not indicated what sort of price level this car would be but, if you can buy with a 50% deposit, could you not buy a cheaper car for cash and allow your credit history to recover?

david.richards27

Aran76 said:

I think it's very unlikely that you'll be accepted by anything other than the specialist lenders that will charge very high rates.

Why don't you buy a lesser car with your savings?

I saw a company from Experian, Experian was tell me I have a 95% acceptance chance, I assume this is probably not likely then?

Catsacor

Probably not, carry out a lot more due diligence, via this forum, to see just how to manage your affairs - the subject of obtaining credit is a large one, and complex, but very worth doing because it'll save you a lot of money in the long run.

You'll read how other people have fallen into a situation they regret by jumping into debt without fully understanding, or accepting, how the complexities work.

We've all been there and we learn, often the hardest way, and can offer a bit of guidance through our own efforts.

nyermen

Sorry to be obvious - the problem is, unlike a house, having a large deposit doesnt have the same meaning (as even if a loan can be secured on a car, its still a depreciating asset).

As others say, consider if a lower cost car is possible.   In another year or two, the CCJ will be less of an issue (i assume its discharged?).  I wouldn't trust the 95% myself btw - right now, your record is saying to potential lenders that only a year ago, you failed to pay a court order within the mandated time (I presume you didn't pay it before the deadline hence its on your record?)