Help - how to get car loan with not so good credit history

We desperately need to buy a car. I tried the MSE eligibility for loans and it said no.
Equifax says we are "good" but likely to be turned down on automatic approvals
I tried money supermarket and it  pre approved HP but looks like we would have to borrow more than I would want to be eligible.

I have seen a couple of private cars for £3500/£4000 so was hoping to borrow about £4k with a budget of max £200 a month. Is that possible anywhere? 

Our credit report is a little ungenerous because we paid our mortgage since last Feb in full plus £400 to arrears each month but its marked as Q from Feb until July and August, then marked as an Arrangement and then in Sept its marked as red (6mth plus arrears) but they were taking us off the arrangement and recapitalizing the arrears and we did pay the mortgage Sept. Since then green ticks  and up to date. Would it be worth asking the bank to change Sept to green? 

Any help appreciated as it is difficult getting to work. We will have cash March time but I need car before then. 

Comments

  • Brie
    Brie Posts: 9,332
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    Anything being changed on your credit history won't be instantaneous.  Might take 3 months??  Assuming the bank agrees which they may not.  

    What would be the alternative sources for finance?  Credit cards?  Maybe a 0% purchase or money transfer deal??  Add the £4k to the mortgage??  Advance on wages?  Bank of mom & dad or ????  

    What is happening in March that will solve the cash flow problem??
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • I wouldn't want any credit cards if at all possible.. We have no debt except mortgage and OD at present.
     No bank of M and D. So it would have to be a loan I guess. Advance on wages might work actually.
    There will be an injury pay out in March. 
     But also we have just this month paid our last Council tax arrears back and everything is now up to date. We are saving £700 a mth by the mortgage being sorted out  so can actually start rebuilding our savings. The bank won't do a further advance on the mortgage just now . 
    On paper we are now well within our borrowing limits. If the car could have just hung on for 3 months!!
  • born_again
    born_again Posts: 13,684
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    Have you tried your bank, given they know the situation?
    Life in the slow lane
  • No. I assumed they would turn us down until we at least get more payments under our belt? 
  • A car finance broker might be your best option, a secured loan against the car is more likely to be accepted than a personal loan.....why? Because the finance company can repossess the vehicle and sell it clawing back some losses....damage limitation.

    The car you're looking at purchasing, is it from a dealer or private sale? Dealer would be better as you have more comeback.
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  • fatbelly
    fatbelly Posts: 20,241
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    edited 29 December 2023 at 9:25PM
    I agree with the above HP through a dealer is likely to be possible but you may be looking at a less good car and the apr could be high at that price point.

    But Brie is right that it's worth seeing if you can get a

    https://www.moneysavingexpert.com/credit-cards/money-transfers/

    and then buy privately
  • Thank you Will give those suggestions a go :-) 
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