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  • FIRST POST
    • Walkingdead91
    • By Walkingdead91 14th Apr 19, 3:32 PM
    • 6Posts
    • 2Thanks
    Walkingdead91
    Car finance (pcp)
    • #1
    • 14th Apr 19, 3:32 PM
    Car finance (pcp) 14th Apr 19 at 3:32 PM
    Good afternoon, Iím just looking for some advice on weather I would be accepted for pcp finanace.

    Little run down of my current situation

    Earned 23500 last year
    Private renting ( 5 years )
    One default ending In 01/2020
    2 credit cards one nearly maxed but keeping up payments + some and another maybe half used again keeping up payments and some
    Got a personal loan 8k left to pay on that, used to buy my recent car. Loan was 12500 with Santander at 9.7%

    I ideally need a bigger car and was looking at a car worth 19800, would be putting 2500 down hoping to secure it on pcp for 320 or less then use the money off my current car to clear mine and the other halfís cards

    Do you think Iím living in dream world or do you think I should be all right. All my payments have been made ontime since the default. This includes a old car finance agreement that was settled a year early 2 years ago, cards, phone contract

    Thanks
Page 1
    • zx81
    • By zx81 14th Apr 19, 3:40 PM
    • 21,673 Posts
    • 23,567 Thanks
    zx81
    • #2
    • 14th Apr 19, 3:40 PM
    • #2
    • 14th Apr 19, 3:40 PM
    You've certainly not made it easy for yourself.

    Asking for almost your annual income in car finance, on top of lots of other debt, maxed cards and a default means you'll need a lender who's comfortable with high risk customers.
    • DCFC79
    • By DCFC79 14th Apr 19, 3:40 PM
    • 33,998 Posts
    • 21,461 Thanks
    DCFC79
    • #3
    • 14th Apr 19, 3:40 PM
    • #3
    • 14th Apr 19, 3:40 PM
    Not entirely sure anyone can answer the question with any certainty.

    Just apply, they will accept you or not.


    If it were me Id go for something less than the £19800.
    Last edited by DCFC79; 14-04-2019 at 3:43 PM.
    • Walkingdead91
    • By Walkingdead91 14th Apr 19, 4:41 PM
    • 6 Posts
    • 2 Thanks
    Walkingdead91
    • #4
    • 14th Apr 19, 4:41 PM
    • #4
    • 14th Apr 19, 4:41 PM
    You've certainly not made it easy for yourself.

    Asking for almost your annual income in car finance, on top of lots of other debt, maxed cards and a default means you'll need a lender who's comfortable with high risk customers.
    Originally posted by zx81
    I know. I wouldnít call 5k worth of credit cards a masssssive amount of debt, and as you say nearly a full years wage on a car? I worked out itís not even quater of my wage over the next 4 years as I know some people advice stopping below 25% etc but I donít know exactly how the companies work things out and I know they wonít give a dam that Iíll be clearing credit card debt with the trade in from my current car valued around 10-11k

    Not entirely sure anyone can answer the question with any certainty.

    Just apply, they will accept you or not.


    If it were me Id go for something less than the £19800.
    Originally posted by DCFC79
    Thanks again I know no one can really tell me if I will or will not be accepted. I was more hoping someone in a similar posistion would comment and tell me how they got on, I might just wait till feb 2020. That way the default should be gone and Iíll hace 4000 less on my cards as Iíve been over paying and plan on getting them down below 20% over all by end of the year.
    • zx81
    • By zx81 14th Apr 19, 4:44 PM
    • 21,673 Posts
    • 23,567 Thanks
    zx81
    • #5
    • 14th Apr 19, 4:44 PM
    • #5
    • 14th Apr 19, 4:44 PM
    I know. I wouldn’t call 5k worth of credit cards a masssssive amount of debt,
    Originally posted by Walkingdead91
    What happened to the 8k loan? Has that been paid off since your first post?

    If that still exists, you're asking for a total of around 33k.
    • Mjfender26
    • By Mjfender26 14th Apr 19, 4:53 PM
    • 159 Posts
    • 17 Thanks
    Mjfender26
    • #6
    • 14th Apr 19, 4:53 PM
    • #6
    • 14th Apr 19, 4:53 PM
    I’ll share my 2pence
    Firstly £320 for a 19k car, on PCP minus the £2500, meaning £16500?
    Seems steep to me..

    I’ve been looking upwards of 28k for pcp and monthly figures are around the same as your 16500? Are you sure that’s correct?
    Debt Free wanna-be in a year.
    £15000 debt in October 2017
    £0 in October 2018
    • Walkingdead91
    • By Walkingdead91 14th Apr 19, 5:23 PM
    • 6 Posts
    • 2 Thanks
    Walkingdead91
    • #7
    • 14th Apr 19, 5:23 PM
    • #7
    • 14th Apr 19, 5:23 PM
    What happened to the 8k loan? Has that been paid off since your first post?

    If that still exists, you're asking for a total of around 33k.
    Originally posted by zx81
    No itís still there

    Iíll share my 2pence
    Firstly £320 for a 19k car, on PCP minus the £2500, meaning £16500?
    Seems steep to me..

    Iíve been looking upwards of 28k for pcp and monthly figures are around the same as your 16500? Are you sure thatís correct?
    Originally posted by Mjfender26
    Not 100% I was to referring to payments of under that amount. I think the one I seen online was 10% used car pcp and it worked out 291 or something like that.
    • Tarambor
    • By Tarambor 14th Apr 19, 5:38 PM
    • 4,844 Posts
    • 3,786 Thanks
    Tarambor
    • #8
    • 14th Apr 19, 5:38 PM
    • #8
    • 14th Apr 19, 5:38 PM
    I know. I wouldnít call 5k worth of credit cards a masssssive amount of debt,
    Originally posted by Walkingdead91
    On its own in isolation it isn't but you have £8k of loan and you're wanting to take on an additional £20k so until you clear some of it off you'll have £33,000 of debt, almost 50% more than your annual income. I can't see any lender going for that to be honest.
    • Nasqueron
    • By Nasqueron 14th Apr 19, 5:41 PM
    • 7,174 Posts
    • 4,520 Thanks
    Nasqueron
    • #9
    • 14th Apr 19, 5:41 PM
    • #9
    • 14th Apr 19, 5:41 PM
    I know. I wouldnít call 5k worth of credit cards a masssssive amount of debt, and as you say nearly a full years wage on a car? I worked out itís not even quarter of my wage over the next 4 years as I know some people advice stopping below 25% etc but I donít know exactly how the companies work things out and I know they wonít give a dam that Iíll be clearing credit card debt with the trade in from my current car valued around 10-11k
    Originally posted by Walkingdead91
    Point here is, what if you lost your job for example, you suddenly have that debt + your CCs + day to day expenditure. Do you have the £250-£300 a month going spare? If so, why have you not paid down the CC? If not, how can you afford this car?
    • Walkingdead91
    • By Walkingdead91 14th Apr 19, 6:00 PM
    • 6 Posts
    • 2 Thanks
    Walkingdead91
    Point here is, what if you lost your job for example, you suddenly have that debt + your CCs + day to day expenditure. Do you have the £250-£300 a month going spare? If so, why have you not paid down the CC? If not, how can you afford this car?
    Originally posted by Nasqueron
    I have 600 spare a month from my wage to get through the month so yes I have the spare money. And I have paid them down. But my partner swapped jobs and didnít get payed for 2 months so I helped her with everything she normally pays so that bumped them back up. Iím planning on having the lower one payed off with In 4 months then start paying the 0% one

    I think from the advice on here I would be best waiting untill atleast my credit cards are at 0 and defaults cleared. Then I can use my current car as a deposit of 8k+ towards the 19k or keep to the 2500 deposits and clear the remaining loan amount.
    • DrEskimo
    • By DrEskimo 14th Apr 19, 6:36 PM
    • 463 Posts
    • 346 Thanks
    DrEskimo
    I think from the advice on here I would be best waiting untill atleast my credit cards are at 0 and defaults cleared. Then I can use my current car as a deposit of 8k+ towards the 19k or keep to the 2500 deposits and clear the remaining loan amount.
    Originally posted by Walkingdead91
    This is certainly the best way forward IMO too.

    Get your debts cleared, start saving and then when you are able to, sell the car and use savings to get a used car of the size you need.

    Don't start chasing artificially low monthly repayments on the false premise that you are getting cheaper motoring...new cars have the most expensive depreciation and PCP finance is nearly always (with the rare exception of 0%) most expensive way to borrow money for a car.

    If you must borrow, do it on a low rate personal loan and look to clear it as fast as possible with the highest monthly amount.

    Start thinking about how you can achieve your financial goals without the use of credit. You'll be in a much better position financially.
    • Tarambor
    • By Tarambor 14th Apr 19, 9:55 PM
    • 4,844 Posts
    • 3,786 Thanks
    Tarambor
    Then I can use my current car as a deposit of 8k+ towards the 19k.
    Originally posted by Walkingdead91
    Or alternatively find a car that is the size you need for the £8k you can get for yours, you could be in a 4/5 year old Mondeo for that. Large cars depreciate faster than small ones because of the running costs, particularly for young people.
    • MalcRH12
    • By MalcRH12 15th Apr 19, 6:48 PM
    • 30 Posts
    • 21 Thanks
    MalcRH12
    Buy a car for 3-4k, pay off your debts then save.
    • Walkingdead91
    • By Walkingdead91 15th Apr 19, 7:10 PM
    • 6 Posts
    • 2 Thanks
    Walkingdead91
    Thanks for all the responses everyone.

    I didn’t really need to trade up as the I have does the family it’s just faf getting kids in and out with it being a low car ( a3 saloon ) and a faf getting a double buggy out and in with the boot enterance being thin

    I truely appreciate all your advice and I can now say I will be a proud owner of a 66 plate a4 advant s line come Friday.

    Got what I wanted for the car and I’m
    No worse off then I was before. ( apart from the balloon payment ) but I don’t intend on keeping the car anyways so I’ll cross that bridge when I come to it.

    Thanks for all your advice
    • k3lvc
    • By k3lvc 16th Apr 19, 5:17 AM
    • 2,605 Posts
    • 4,321 Thanks
    k3lvc

    I truely appreciate all your advice and I can now say I will be a proud owner of a 66 plate a4 advant s line come Friday.

    Got what I wanted for the car and Iím
    No worse off then I was before. ( apart from the balloon payment ) but I donít intend on keeping the car anyways so Iíll cross that bridge when I come to it.

    Thanks for all your advice
    Originally posted by Walkingdead91
    So you really didn't listen to any of the advice given

    I can't blame you, I've been there, done that and am still paying for it long after the shiny new toy feeling has gone.

    All you've done is kick a (now bigger) financial issue further down the road and I'm sure you'll end up back here in 2yrs

    In the meantime enjoy the new car
    • Nasqueron
    • By Nasqueron 16th Apr 19, 10:24 AM
    • 7,174 Posts
    • 4,520 Thanks
    Nasqueron
    Thanks for all the responses everyone.

    I didnít really need to trade up as the I have does the family itís just faf getting kids in and out with it being a low car ( a3 saloon ) and a faf getting a double buggy out and in with the boot enterance being thin

    I truely appreciate all your advice and I can now say I will be a proud owner of a 66 plate a4 advant s line come Friday.

    Got what I wanted for the car and Iím
    No worse off then I was before. ( apart from the balloon payment ) but I donít intend on keeping the car anyways so Iíll cross that bridge when I come to it.

    Thanks for all your advice
    Originally posted by Walkingdead91

    So in 3 years time you'll have to deal with another finance issue of getting a new car and another cycle of debt that you struggle with already? See you then
    • Tarambor
    • By Tarambor 16th Apr 19, 2:07 PM
    • 4,844 Posts
    • 3,786 Thanks
    Tarambor
    Got what I wanted for the car and I’m
    No worse off then I was before.
    Originally posted by Walkingdead91
    Yes you are. If you look at your credit file in a month you'll find that the amount of debt you are in has just had a ton more money go on it as the debt will be adding the full cost of the A4 less the amount you got for your car and you now not only have two credit cards and an £8k loan for a car you no longer own but a 3 year PCP deal plus the balloon payment as well as debt.

    But at least you've now got a shiny 2/3 year old Audi A4 you can prance around in going "look at me, aren't I doing well" when you're on the school run. You can join in with all the others at the school up to their eyeballs in debt trying to portray a lifestyle they can't afford.

    We'll see you again in April 2022 when your PCP is coming to an end, you've no money and wondering how you can finance your next car.
    Last edited by Tarambor; 16-04-2019 at 2:10 PM.
    • parking_question_chap
    • By parking_question_chap 16th Apr 19, 9:46 PM
    • 2,132 Posts
    • 2,337 Thanks
    parking_question_chap
    Thanks for all the responses everyone.

    I didn’t really need to trade up as the I have does the family it’s just faf getting kids in and out with it being a low car ( a3 saloon ) and a faf getting a double buggy out and in with the boot enterance being thin

    I truely appreciate all your advice and I can now say I will be a proud owner of a 66 plate a4 advant s line come Friday.

    Got what I wanted for the car and I’m
    No worse off then I was before. ( apart from the balloon payment ) but I don’t intend on keeping the car anyways so I’ll cross that bridge when I come to it.

    Thanks for all your advice
    Originally posted by Walkingdead91

    Not really sure thats anything to be proud of, and kids certainly dont get any cheaper when they get older.

    But at least you are keeping up with the Joneses.
    • stehouk
    • By stehouk 17th Apr 19, 11:52 AM
    • 223 Posts
    • 96 Thanks
    stehouk
    ha ha ha ha what a good read this has been, op obviously didn't pay any attention to the advice offered, good luck to them but "proud owner" no, you own nothing but the debt i'm afraid.

    keeping up with the Joneses, my neighbour parked his brand spanking new Mercedes c class on drive 33k new on a pcp £400 per mth that's what its like these days.
    Last edited by stehouk; 17-04-2019 at 12:41 PM.
    • MEM62
    • By MEM62 17th Apr 19, 2:43 PM
    • 2,255 Posts
    • 1,905 Thanks
    MEM62
    I know. I wouldn’t call 5k worth of credit cards a masssssive amount of debt, and as you say nearly a full years wage on a car? I worked out it’s not even quater of my wage over the next 4 years as I know some people advice stopping below 25% etc but I don’t know exactly how the companies work things out and I know they won’t give a dam that I’ll be clearing credit card debt with the trade in from my current car valued around 10-11k
    Originally posted by Walkingdead91
    The DFW forum looks forward to your future posts
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