My cars been written off

Jon.arnold.uk · 17 February 2018 at 8:53AM

Hello everyone. I was in a non fault accident on Monday and although it hasn’t been officially inspected and written off yet I’m not expecting to get the car back due to the amount of damage. My problem is I have it on finance which is fine. I have return to invoice gap cover so should get back around £500. My problem is I’m worried I won’t get finance at the moment as will my current finance and a personal loan with my bank hinder me and I got a first time mortgage that started in December? I have decent credit but I know there’s only so much you can borrow. Any advice would be greatly appreciated thanks.

Jonesya · 17 February 2018 at 9:14AM

Could you not get a cheaper, used car to tide you over for a couple of years while you pay down your debts?

Jon.arnold.uk · 17 February 2018 at 9:23AM

My car was used anyway but if I have to I will get a cheap run around. My car wasn’t that expensive in the first place and you get what you pay for. I want something reliable that won’t give me any issues due to the distance I travel which isn’t that far and the route I take that you wouldn’t want to break down on.

Hoof_Hearted · 17 February 2018 at 9:34AM

I think there are some incredible used car bargains around, especially if you go for a decent make but an unpopular model and aren't fussed about image.

Jon.arnold.uk · 17 February 2018 at 9:43AM

I’m not bothered about image but I’d like a certain car and depends what people class as expensive. I know I can afford it but it’s whether lenders will agree. My question is will lenders lend to me after my write off and will my current finance end as it will get paid in full by insurance and will I be able to go and get a new used car that was similar to what I had. In fact for what I want will be around £40-£50 a month cheaper

AdrianC · 17 February 2018 at 10:40AM

Jon.arnold.uk wrote: »

I know I can afford it but it!!!8217;s whether lenders will agree.

If nobody will lend you the money, then you can't afford it.

My question is will lenders lend to me after my write off

The write-off will not itself affect your lendability. They will base it on your current financial situation. Given that that is not the same as it was, the decision may not be the same. Your perception of affordability may not tie to the lender's.

and will my current finance end

Almost certainly, yes.

You bought that car with finance secured on that car. That car no longer exists, and the insurance are settling the finance. That finance package is ended.

To buy another car, you need to take out a new finance package, secured on that car.

Jon.arnold.uk · 17 February 2018 at 1:09PM

If my car that was written off was £253 per month then a new car at no more than £210 is affordable whether they lend or not. I’m just curious whether it’s wise to apply for finance once mines been paid out and the current finance is paid off will I have to wait until I buy a new one on hp or will I be able to basically buy a new car the following weekend as I need a car what ever happens

System · 17 February 2018 at 6:40PM

Any current finance will affect an affordability test on any new application, only problem is it usually takes a few weeks for your credit file to get updated so you may find if you try to get more finance or a PCP etc that you may have some problems.

If you don't travel far is it worth spending over £200 a month on finance plus all the other costs you incur just to have it sat there (Tax, insurance, servicing etc)? If you're only doing a few miles a day it would actually be cheaper just to phone a mini-cab company and hire a car when you need to do long journeys. I reckon if you did the maths you'd scare yourself at how much it costs you per mile for the journeys you do.

Jon.arnold.uk · 17 February 2018 at 7:08PM

Thanks. I do about 45 miles a day to work and back but it’s also the route I take as buses and trains are a lot more hassle than it’s worth that would add a lot more travel time. I do around 12k miles a year so still kinda need a decent car. Thanks for the info on future finance I may wait a couple of months and let my file get updated and risk a cheap run around in the mean time. Also I like my cars and you can’t take your money to your grave can you.

silverwhistle · 18 February 2018 at 12:20AM

Jon.arnold.uk wrote: »

Also I like my cars and you can’t take your money to your grave can you.

As long as you understand that and are prepared to pay accordingly. I was thinking your £200 a month was a fair bit. The cost of my current car has worked out at £80 a month plus routine servicing and last week brought us back from the Alps fully laden with gear and rather a lot of wine and cheese after a 2 week skiing holiday.

Our priorities are different but my 4 grand car has always done what I've needed it too, so you might find a cheap runaround would do the job for longer than you think whilst you save up!

missile · 18 February 2018 at 4:49AM

You will be able to claim cost of a hire car on 3rd parties insurance, until your car is repaired / receive settlement for your old car.

My cars been written off

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