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Raising credit rating for vehicle finance

I'm going to be needing a new van for work shortly ideally euro 6 as we have a low emissions zone near us. These vans are around £12k however other than zuto at 40% Apr no one will touch me. 

Am I whistling in the wind I've an old ccj from over 2 years ago which I satisfied 3 months ago and a default from 3 years ago. I have no other debt and we rent a house. 

Currently using a credit card with 20% utilisation each month which i pay off in full each month. Is it worth getting a second to get my credit rating up sooner?. Any suggestions would be great.

Comments

  • Largs
    Largs Posts: 366 Forumite
    100 Posts First Anniversary Name Dropper
    I'm not sure I would apply for more credit just before you apply for the vehicle.  Have you asked the dealer about finance?
  • Mitchel.
    Mitchel. Posts: 63 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    Largs said:
    I'm not sure I would apply for more credit just before you apply for the vehicle.  Have you asked the dealer about finance?
    Never had finance not sure where you get it from do I go to a broker?
  • Largs
    Largs Posts: 366 Forumite
    100 Posts First Anniversary Name Dropper
    Mitchel. said:
    Largs said:
    I'm not sure I would apply for more credit just before you apply for the vehicle.  Have you asked the dealer about finance?
    Never had finance not sure where you get it from do I go to a broker?
    Ive only ever dealt with the dealer/car showroom, they normally have a panel of finance companies to try.
  • CliveOfIndia
    CliveOfIndia Posts: 2,175 Forumite
    1,000 Posts Second Anniversary Name Dropper
    edited 6 February at 8:53AM
    Mitchel. said:
    Largs said:
    I'm not sure I would apply for more credit just before you apply for the vehicle.  Have you asked the dealer about finance?
    Never had finance not sure where you get it from do I go to a broker?
    In a scenario such as this it's more common to go via the dealer.  Although they don't actually provide the finance themselves, they'll have a particular finance house who provides finance on their behalf (they may have more than one that they use).
    The key point about getting "vehicle finance" via the dealer, rather than a bog-standard personal loan, is that the finance is usually secured against the vehicle.  If you fail to maintain repayments on an unsecured personal loan, the lender has a lengthy and fairly expensive legal process to go through in order to get their money back.  Default on finance secured against the vehicle, they'll simply come round and repossess the vehicle.
    Since they have an easier and cheaper route to recoup their money should you default, you can often find you're more likely to be accepted for this type of finance.

    The one thing I'm not sure about, and it may be worth checking up on - you say the van is for business use?  I know the laws in general around "business" transactions can be different to "consumer" transactions.  I don't know if there's a difference when it comes to finance, but it may be worth checking - or even asking the dealer.  Just in case there are any "gotchas" to be aware of.

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