Car Finance

ste_bla

ste_bla

ste_bla

Soldato
Joined
9 Aug 2004
Posts
7,795
Location
Milton Keynes
Looking at some cars and wondering its unlikely I'd get a unsecured loan for £10k but I can get one secured on the car @ the dealer

So the question is there any companies that will give you a loan secured on a car who arnt associated with the dealer?
 
Yes, but you'll pay through the nose for them. I enquired about this when I was looking to buy my LCR, really not worth the hassle.
 
ste_bla said:
Looking at some cars and wondering its unlikely I'd get a unsecured loan for £10k
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So don't spend £10k on a car if thats your financial situation atm - with good cars to suit all budgets there is no need to stretch yourself.
 
aye, if you cant afford it, dont buy it, plenty of choice for people of all financial situations without resorting to owing a bank/firm your life
 
Thats the thing I can afford it but have very little credit history and so am concidered bad (nationwide told me this) and so cant get the loan!

I have never had any defaulted payments, late payments, CCJ's etc

Well tbh I can afford (with a margin of safety) upto £350 a month which with natwest its £305 @ 3 years total interest £1082 but they just wont let me :(
 
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.:MBK:. said:
aye, if you cant afford it, dont buy it, plenty of choice for people of all financial situations without resorting to owing a bank/firm your life
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If he can afford the repayments, he can afford it ;)

It doesn't always make sense to spend a large amount of upfront cash on a depreciating asset.
 
Dealer finance can work out ok if they get you a good rate. They normally are more willing to knock off more on the price of the car itself, as they are getting the interest from the finanace agreement and not a bank/someone else ;)
 
Dolph said:
If he can afford the repayments, he can afford it ;)

It doesn't always make sense to spend a large amount of upfront cash on a depreciating asset.
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Well im after a galaxy 3 years old and depreciated 54% (New £22k now £10k) so I doubt it can go down too much more at a fast rate (if that makes sense?)

Ev0 said:
Dealer finance can work out ok if they get you a good rate. They normally are more willing to knock off more on the price of the car itself, as they are getting the interest from the finanace agreement and not a bank/someone else ;)
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So you can barter with them more if you take their finance normally?
 
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Try a few diffrent banks, if it's just lack of payment history. You should be able to get an unsecured loan. I had no problem getting one 3 years ago. You just have to shop about.
 
I agree, you've got to build up your credit history somewhere. You could land a dream job at 21 paying 40k per year, and you'd still probably be rejected on a 10k bank loan.

It's a bit late now, but things like buying a TV on an interest free offer (over a few months) is good because you don't go out of pocket and all the while your credit history is building.
 
Dolph said:
If he can afford the repayments, he can afford it ;)

It doesn't always make sense to spend a large amount of upfront cash on a depreciating asset.
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Nobody is suggesting that, but generally speaking obtaining unsecured loans for £10k cars is not a challenge for people who can comfortably afford them. The fact it's proving difficult suggests perhaps a lowering of sights is the best way forward.
 
Ah there lies the problem I hate owing money and will save up* even if it interest free etc it just nags at me inside my head, I'm weird :(

*except for this car due to kids, or houses
 
Don't keep applying for loans!! Every time you are turned down it is marked on your credit file, making it harder for you to get one. The best thing to do is get a credit card (capital one give them out like candy), and start building up a credit history. Credit agreements (finance on cars), direct debits (mobile bills etc) also help improve your score.
 
iPWN said:
Don't keep applying for loans!! Every time you are turned down it is marked on your credit file, making it harder for you to get one. The best thing to do is get a credit card (capital one give them out like candy), and start building up a credit history. Credit agreements (finance on cars), direct debits (mobile bills etc) also help improve your score.
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Believe it or not, I got turned down for a Captial One car!

I do/did have though;
2 x CC's
1 x Over/Draft (joint account though)
4 x o2 contracts (all free via onestopshop though)
1 x Little-woods account
1 x 6 months ago laptop on 12 months free interest but paid it off after 2 months as the nagging inside my head!
 
I would get a credit report, one of them do a 30day free period. just make sure you cancel see what that brings up. You shouldn't be having trouble on a loan.
 
AcidHell2 said:
I would get a credit report, one of them do a 30day free period. just make sure you cancel see what that brings up. You shouldn't be having trouble on a loan.
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I've already done that about 2 months ago and it had no incorrect info or black marks, the only bad thing is its linked to my misses who has had two missed payments but they were 3/4 years ago

Edit : It was an experian one
 
Mickey said:
TBH mate, just go for the dealer finance. If you can afford it and want the car then why not?
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Well dealer wants £340 a month and bank is about £300/310 give or take

So I'd save £1080 in interest (30*36)
 
ste_bla said:
Well dealer wants £340 a month and bank is about £300/310 give or take

So I'd save £1080 in interest (30*36)
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But you've already said the bank won't give you a loan.

In my experience bank loans are a bit of a pain too if you're wanting to pay it off faster than the period you set it up for, often you can only settle in one lump sum, dealer finance will usually let you pay off chunks at a time. Maybe not a problem for you but it's worth thinking about.
 
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