Discussion
I don't suppose there's much that can be done but here goes...
In September I'll be getting a new (To me, 59 plate) Golf 110 tdi which as I have been told many times are good cars. But I don't want the UK's top selling car with average BHP. If I end up going down this route, I am tied up to running this car for three years. One thing that pushes me to work and do well is the dream of getting a quickish ( Skoda fabia VRS please) auto car.
Inless I buy my own car, in which case I would receive a car allowance of £4200.
I have Assets to the value of £25k (Shares and a growing forex account)which are strictly for the purchase of a house in a few years.
I have an equifax credit rating of 450 points (The mid- range of good) and I understand that different creditors score people with different criteria.
But I can't get a loan for a car (Looking at £13k)
Regrettably I have a couple of very recent missed payments on my credit file and also I will not be registered at my current address on the electoral role until August the 1st.
A loan with a guarantor is not possible either
Does anyone have some outside the box ideas to save me from spending 3 hours a day in a slow eurobox? It cannot involve the spending of the aforementioned £25k.
In September I'll be getting a new (To me, 59 plate) Golf 110 tdi which as I have been told many times are good cars. But I don't want the UK's top selling car with average BHP. If I end up going down this route, I am tied up to running this car for three years. One thing that pushes me to work and do well is the dream of getting a quickish ( Skoda fabia VRS please) auto car.
Inless I buy my own car, in which case I would receive a car allowance of £4200.
I have Assets to the value of £25k (Shares and a growing forex account)which are strictly for the purchase of a house in a few years.
I have an equifax credit rating of 450 points (The mid- range of good) and I understand that different creditors score people with different criteria.
But I can't get a loan for a car (Looking at £13k)
Regrettably I have a couple of very recent missed payments on my credit file and also I will not be registered at my current address on the electoral role until August the 1st.
A loan with a guarantor is not possible either
Does anyone have some outside the box ideas to save me from spending 3 hours a day in a slow eurobox? It cannot involve the spending of the aforementioned £25k.
I assume you have tried your own bank?
I would wait until you on the electoral roll and have made a few more payments on time before trying again.
If you have outstanding credit elsewhere you may be best to take the cash, buy something cheaply and use the surplus cash to pay down the debt. Then look at things again.
I would wait until you on the electoral roll and have made a few more payments on time before trying again.
If you have outstanding credit elsewhere you may be best to take the cash, buy something cheaply and use the surplus cash to pay down the debt. Then look at things again.
I've tried my own bank, they won't even lend me £2k. But I guess the recent missed payments have been on my accounts with them...
I will try again after I'm on the electoral role, but I'm not sure thats gonna be a deal maker as for the last 18 months I've lived in 4 registered addresses.
I'd love to know how much of an effect this has though.
I've no lines of credit bar the £ton overdraft and one mobile phone contract. But I've gone through £10k of credit and paid it all off in time.
My share holdings are C£20K split through 8 companies are held with Barclays. I don't suppose that if I switched to banking with them they would take this into consideration?
IE as collateral should things go wrong.
If the lenders could take this into considering along with physical ownership of a car (I.E not loan money spent on a holiday or university) then I think I would be a very low risk!!
I will try again after I'm on the electoral role, but I'm not sure thats gonna be a deal maker as for the last 18 months I've lived in 4 registered addresses.
I'd love to know how much of an effect this has though.
I've no lines of credit bar the £ton overdraft and one mobile phone contract. But I've gone through £10k of credit and paid it all off in time.
My share holdings are C£20K split through 8 companies are held with Barclays. I don't suppose that if I switched to banking with them they would take this into consideration?
IE as collateral should things go wrong.
If the lenders could take this into considering along with physical ownership of a car (I.E not loan money spent on a holiday or university) then I think I would be a very low risk!!
Do you have a car at the moment? If so, take the car allowance but continue running your current steed - if not then buy a bargain (apparently you can get a chipped BMW MX-5 diesel or something for under a grand and it will cost peanuts to run and will go forever). Then start banking the car allowance and as the bank balance rises the cost of buying your dream machine will fall until the two converge.
Despite my sarcasm above there are some very respectable cars out there for a couple of grand to tide you over until you get more cash together. Also if you're missing payments on a loan / card already wouldn't it be prudent to pitch your expectations a little lower on the motoring front, at least for a couple of years?
Despite my sarcasm above there are some very respectable cars out there for a couple of grand to tide you over until you get more cash together. Also if you're missing payments on a loan / card already wouldn't it be prudent to pitch your expectations a little lower on the motoring front, at least for a couple of years?
I'm currently on the company car scheme, but I'm in a rented focus untill the golf becomes avalible.
I'm really enjoying being in the petrol focus!
The cheap banger isn't really possible as the car allowance scheme dictates the car must be under 5 years old.
I could lay my hands on a max of 2G though, this has got me thinking...
Also to note, at 21 insurance can be an issue.
I'm really enjoying being in the petrol focus!
The cheap banger isn't really possible as the car allowance scheme dictates the car must be under 5 years old.
I could lay my hands on a max of 2G though, this has got me thinking...
Also to note, at 21 insurance can be an issue.
Have you spoken to the dealers about what finance they can offer? You know the budget from the car allowance - allow for servicing and insurance too - and see what you can get.
However with insurance prices generating a thread a week or more you may do well to put up with a Golf for 3 years and let someone else pay the bills. Perhaps get a test drive in one and see how you feel?
However with insurance prices generating a thread a week or more you may do well to put up with a Golf for 3 years and let someone else pay the bills. Perhaps get a test drive in one and see how you feel?
I have a cunning plan...
I could buy this for £1800 or something similar (An embarrassing £1400 with £750 excess to insure with mother on policy + 2y NCB!)
http://www.autotrader.co.uk/classified/advert/2011...
Run it for 6 months, which should enable me to save around £500 a month towards a new car, after 6 months re-apply for a smaller loan.
I guess I'd also have to be a bit savy with the insurance policy, IE making sure there are no large cancellation or policy amendment fees.
6 months in an 80bhp micra though...
I could buy this for £1800 or something similar (An embarrassing £1400 with £750 excess to insure with mother on policy + 2y NCB!)
http://www.autotrader.co.uk/classified/advert/2011...
Run it for 6 months, which should enable me to save around £500 a month towards a new car, after 6 months re-apply for a smaller loan.
I guess I'd also have to be a bit savy with the insurance policy, IE making sure there are no large cancellation or policy amendment fees.
6 months in an 80bhp micra though...
AFAIK savings don't count much towards a credit profile.
The score shows primarily the debts that you've taken out and the repayment history (along with employment, living arrangements etc etc).
The missing payments and lack of electoral role are killing the real world score. The online score means zip as the agency aren't lending you the £
At your age, I would take the Golf. It's a decent machine for a 21 year old, which would allow you to save for something better later.
The score shows primarily the debts that you've taken out and the repayment history (along with employment, living arrangements etc etc).
The missing payments and lack of electoral role are killing the real world score. The online score means zip as the agency aren't lending you the £
At your age, I would take the Golf. It's a decent machine for a 21 year old, which would allow you to save for something better later.
Drive the Golf for 3 years. If you can really save £500/month despite paying for overpriced insurance and taking a hit on depreciation etc then you'll save similar amounts on the company car scheme - that's £6000/year. Therefore in 3 years time the world is your oyster as far as cars go - although you may decide that £18000 is better spent in other ways when the time comes.
Circumstances can change quickly - so taking the company car which you can just hand back if the worst happens is not a bad move. And if insurance for a Micra is £1300 then what are you going to pay when you buy your ideal car?
ETA: I'm biased - I'm just entering a debt management scheme as a result of lots of decisions which 'seemed like a good idea at the time'. If I'd been more prudent over the last 5 years then I'd be in a much better position to choose my preferred car now. Instead I'm looking at another 5+ years to sort out the mess.
Circumstances can change quickly - so taking the company car which you can just hand back if the worst happens is not a bad move. And if insurance for a Micra is £1300 then what are you going to pay when you buy your ideal car?
ETA: I'm biased - I'm just entering a debt management scheme as a result of lots of decisions which 'seemed like a good idea at the time'. If I'd been more prudent over the last 5 years then I'd be in a much better position to choose my preferred car now. Instead I'm looking at another 5+ years to sort out the mess.
Edited by oldcynic on Monday 18th July 12:06
Thanks for all the help and suggestions so far.
I've placed a(Refundable) deposit on a Fabia VRS, and they will see what finance deals they can get me (If any!) In the morning, I checked and they do use Close Motor Finance. Though I suspect they will go to Skoda first so they can achieve greater margin.
So I'll find out tomorrow if I can proceed with finance, though I will not be accepting any ridiculous interest rates.
If unsuccesfull, I think I will just retire to being stuck with a golf for three years.
I've placed a(Refundable) deposit on a Fabia VRS, and they will see what finance deals they can get me (If any!) In the morning, I checked and they do use Close Motor Finance. Though I suspect they will go to Skoda first so they can achieve greater margin.
So I'll find out tomorrow if I can proceed with finance, though I will not be accepting any ridiculous interest rates.
If unsuccesfull, I think I will just retire to being stuck with a golf for three years.
Just an update incase anyone is interested.
Much to my suprise Skoda will do me a Finance deal (Through Skoda finance) :
£5k deposit
35 monthly payments of £294 (£10,290)
Total repayable £15688
Full ownership after the repayment period.
The motor is priced at £13,000 Though I think I'll see if I can get something thrown into the deal is its not a brilliant spec. That is if I am proceed with this proposition.
So I have a BIG dilema on my hands now, this would be the biggest financial commitment I've even considered.
I'll have a think and crunch some numbers!
Much to my suprise Skoda will do me a Finance deal (Through Skoda finance) :
£5k deposit
35 monthly payments of £294 (£10,290)
Total repayable £15688
Full ownership after the repayment period.
The motor is priced at £13,000 Though I think I'll see if I can get something thrown into the deal is its not a brilliant spec. That is if I am proceed with this proposition.
So I have a BIG dilema on my hands now, this would be the biggest financial commitment I've even considered.
I'll have a think and crunch some numbers!
How much is the insurance, and what mileage are you expecting to cover? What about expected servicing costs?
It's a lot of money to spend on a VW group car in order to avoid driving a VW! As suggested already, take the company car for 3 years then save as much as you can towards your choice of car when your premiums have dropped to something realistic.
Also, have you taken a test drive in a similar Golf yet?
It's a lot of money to spend on a VW group car in order to avoid driving a VW! As suggested already, take the company car for 3 years then save as much as you can towards your choice of car when your premiums have dropped to something realistic.
Also, have you taken a test drive in a similar Golf yet?
HBFS said:
£5k deposit
35 monthly payments of £294 (£10,290)
Total repayable £15688
The motor is priced at £13,000.
Not sure how £5k plus £10,290 = £15,688 but never mind.35 monthly payments of £294 (£10,290)
Total repayable £15688
The motor is priced at £13,000.
I still find that finance deal a little hard to swallow.
You have borrowed £8k (£13k - £5k).
Over three years you pay back £10,290.
Isn't that about 17% APR?!!!!!!!
Let me think for a mo.....
About £80 a month all in for a car (assuming you pay 20% tax). Your £4200 is taxed so will end up being more like £3500 so just under £300/month towards the car.
OR
£100's a month plus a depreciating asset that is your problem if it breaks. Oh and I guess your ability to get further credit will be limited as you will be tapped out with the car loan.
Get the golf and suck it up. Its a bloody Skoda with a different badge on it anyway! Put the extra money in your stocks and shares, make MORE money so you have to take a smaller mortgage save yourself 1000's over the 25yrs you would borrow over buy the vRS....... happy days!
Trust me I have been there and done it. I now own my house & my dream car and the company hack has got better too!
Shep
About £80 a month all in for a car (assuming you pay 20% tax). Your £4200 is taxed so will end up being more like £3500 so just under £300/month towards the car.
OR
£100's a month plus a depreciating asset that is your problem if it breaks. Oh and I guess your ability to get further credit will be limited as you will be tapped out with the car loan.
Get the golf and suck it up. Its a bloody Skoda with a different badge on it anyway! Put the extra money in your stocks and shares, make MORE money so you have to take a smaller mortgage save yourself 1000's over the 25yrs you would borrow over buy the vRS....... happy days!
Trust me I have been there and done it. I now own my house & my dream car and the company hack has got better too!
Shep
Edited by shep1001 on Wednesday 20th July 20:15
Edited by shep1001 on Wednesday 20th July 20:17
Get the company golf and chip it up.
Remember the advantages of a company car:
Warms up instantly.
Park it anywhere
You don't worry about the ongoing mileage.
Tyres and brakes are free
Insurance is free
road tax is free
Someone dings a door or drives into you - doesn't really matter apart from you wanting to keep the car A1
Run over something on the motorway - write off a tyre = free
Gets nicked - no problem to you.
Save yourself thousands of pounds.
Oh, want to swap jobs, made redundant etc - your left holding the can, paying for your skoda which will be worth less than the outstanding finance....
Its not like a new Golf is pants and even though its not superfast, you can hone your no doubt F1 standard driving skills by beating everyone else on the planet with it.
Its a poo when grownups want to pee on your chips..
Remember the advantages of a company car:
Warms up instantly.
Park it anywhere
You don't worry about the ongoing mileage.
Tyres and brakes are free
Insurance is free
road tax is free
Someone dings a door or drives into you - doesn't really matter apart from you wanting to keep the car A1
Run over something on the motorway - write off a tyre = free
Gets nicked - no problem to you.
Save yourself thousands of pounds.
Oh, want to swap jobs, made redundant etc - your left holding the can, paying for your skoda which will be worth less than the outstanding finance....
Its not like a new Golf is pants and even though its not superfast, you can hone your no doubt F1 standard driving skills by beating everyone else on the planet with it.
Its a poo when grownups want to pee on your chips..
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