Good deals for car financing/low credit?

Flann3l

Hi everyone,

I'm a teacher who has been working in London for the last 5 years but I've recently got a new job up north and will need to have a car to live in that area. I've never needed a car to travel around London in the past and I've never put money aside for one so I'm looking for any good deals for either financing options or long term lease? Would appreciate if someone could point me in the right direction...

Also if they have decent insurance options as well, it's been several years since I got my licence and I've only hired rentals occasionally for trips...

Thanks!

CliveOfIndia

It depends to a large extent on what you want and what your budget is.  If you're after a brand new car then a lot of people like the PCP type packages.  Personally I'm not a fan of these, as a new car is an expensive option whichever way you look at it.

To me, a more sensible approach is an ordinary personal loan over a relatively short period of time to buy a reasonably decent used car.  That way you actually own the car, and someone else has already taken most of the hit on depreciation.  Of course, you are responsible for routine maintenance and any repairs that may need doing, so you need to factor that into the equation.

Used car prices are much higher at the moment than they used to be, but it should still work out cheaper in the long run as long as you take your time and look around for something half-decent.

But it depends very much on your budget and your priorities - a brand-new car is a very different proposition from an older used car, and the "best" finance package will be different.

For insurance, the simplest is to stick your details into one of the aggregator sites and see what they come up with.  Also check the insurers who don't appear on the aggregators - Direct Line and LV are two that come to mind, I'm sure there are probably others.

Goudy

You can as a teacher access various deals and discount schemes on new cars that can save you some money.

Myself and other colleagues have used these as we work for the NHS and get access to the same sort of deals.
Car Discounts for Teachers on New Cars & Lecturer Car Deals - Motor Source Group
You arrange the deal and pay/finance through them but the car is delivered to your local dealers.
My Mrs saved £4000 on a PCP but colleagues have bought outright and also saved the same sort of cash.

Different makes and models offer different discounts, so it's worth searching similar cars and see which comes out best.

Motor Source do leases as well, but I have never checked if they are competitive.

There are other specific dealers like Motor Source that do this sort of thing like
 Teacher Car Discounts | Exclusive Teacher Deals | Motorfinity

I am pretty certain manufacturers will offer similar deals for teachers as they do for Fire, Police and NHS, you need to search or ask dealers or your union, if you are a member.
I know Fiat/Alfa/Jeep do/did a privilege scheme that might be accessible.
 
My sister is now retired from teaching and I think she just used to go in and ask different dealers until she got what she was happy with.

My latest car came direct through a normal Renault dealer on an "Blue light card" discount scheme, I know it's not for teachers but it shows if you search around and ask what is possible. I saved nearly £4500 on my Clio.

You need to look at the whole deal though, some offer good discounts but hope to claw it back in interest on the finance, so it worth doing your sums.