car finance,poor credit history.
Discussion
evening all,
around the summer i will be looking to finance a car if possible.Right now my heart is set on an e60 m5 im expecting to pay 21-23k.
the problem i have is i have a poor credit rating altough i have been earning(what i consider) good money now for 5+ months.
i have recently took out a credit card designed to improve credit rating,which i pay off in full every month.
so basically i am trying to find out what my best option for finance is.
Also if i can show garages/finance companys wage slips with earnings of 5k+ per month,what kind of impact if any, would that have on my application?
and no doubt there will be suggestions of wait and save up for it,but i want it sooner rather than later if i have to weait and save up i will but right now i want to try get it on finance
thoughts please,
thanks.
around the summer i will be looking to finance a car if possible.Right now my heart is set on an e60 m5 im expecting to pay 21-23k.
the problem i have is i have a poor credit rating altough i have been earning(what i consider) good money now for 5+ months.
i have recently took out a credit card designed to improve credit rating,which i pay off in full every month.
so basically i am trying to find out what my best option for finance is.
Also if i can show garages/finance companys wage slips with earnings of 5k+ per month,what kind of impact if any, would that have on my application?
and no doubt there will be suggestions of wait and save up for it,but i want it sooner rather than later if i have to weait and save up i will but right now i want to try get it on finance
thoughts please,
thanks.
okgo said:
£5k a month net?
If so why do you need finance?
If so why do you need finance?
- yawn*
It bores me hearing people say "if you earn £5k net a month why do you need finance".......
The guy wants to use finance rather than saving, rightly or wrongly, so why not just concentrate on what he is asking rather than the usual PH mob saying the usual drivel of "buy a house first" or "save up and buy it cash".........
Poor Credit History, less than 6 months in a job (I assume from your post you were making a lot less 6 months ago) and a M5. Honesly unless you're prepared to pay silly stupid APR or borrow against Property with lots of equity on it you've got no hope.
You're better of sticking with the Bus and using your new income to clean up your history or funding a more modest motor for a couple of years.
You're better of sticking with the Bus and using your new income to clean up your history or funding a more modest motor for a couple of years.
P-Jay said:
Poor Credit History, less than 6 months in a job (I assume from your post you were making a lot less 6 months ago) and a M5. Honesly unless you're prepared to pay silly stupid APR or borrow against Property with lots of equity on it you've got no hope.
You're better of sticking with the Bus and using your new income to clean up your history or funding a more modest motor for a couple of years.
I agree with above.You're better of sticking with the Bus and using your new income to clean up your history or funding a more modest motor for a couple of years.
OP - surely you can save up for a few months then you can buy a car 'outright' with no finance ??
That is what I did, I saved for 12 months and I have been very patient and bought my car outright.
I think sadly, if you've a poor history of credit then you will be going back to form if you decide to finance a car at this stage, irrespective of the fact you're taking home £5k pcm.
Unfortunately a good credit record comes with control and jumping straight into £20k of finance doesn't seem like good control to me. As crap as it sounds be patient and wait it out before jumping headlong into more debt.
Unfortunately a good credit record comes with control and jumping straight into £20k of finance doesn't seem like good control to me. As crap as it sounds be patient and wait it out before jumping headlong into more debt.
Fatman2 said:
I think sadly, if you've a poor history of credit then you will be going back to form if you decide to finance a car at this stage, irrespective of the fact you're taking home £5k pcm.
Unfortunately a good credit record comes with control and jumping straight into £20k of finance doesn't seem like good control to me. As crap as it sounds be patient and wait it out before jumping headlong into more debt.
This. Good assessment.Unfortunately a good credit record comes with control and jumping straight into £20k of finance doesn't seem like good control to me. As crap as it sounds be patient and wait it out before jumping headlong into more debt.
It depends on how BAD your credit history is and the reasons behind it. Money earned is a factor, however so is affordability taken into account - so you may be earning £5k gross, but if you have a big mortgage and 6 kids then the affordability indexes used by most lenders will limit the amount per month they view as you being able to pay. So make sure first of all you get your sums right.
If your credit history is poor but not terrible then there are still some sub prime lenders worth talking to, however do this in the knowledge that your APR you are paying will be much higher than the norm hence overall you will pay alot more for the car, i.e a 23k car may end up costing you £30-£35k. However if you are happy with this then you need to find the right provider. Most motor finance companies go through dealers not direct to consumers.
You will need a decent deposit - this will help get the loan, the advantage of motor finance is they have the car as security so CAN (under the right conditions) be more willing to lend.
Before you apply for anything - get a copy of your credit file and make sure it is correct - much as it may not look brilliant make sure it is accurate. Check you are on the electoral roll at your house, make sure your new credit card is reporting properly.
When you find the car check who the dealer uses for funding - most have some kind of sub primer provider. There used to be a lot more in the market pre-recession. But now the kind of names you should be looking out for are - Close Motor Finance (prime & near prime), Carlyle Finance (near prime & light sub prime), The funding Corporation (Sub prime) & Advantage Motor Finance (sub prime). Just to reiterate - YOU WILL PAY HIGHER APR's and the app process will be longer. The smaller companies such as Advantage will normally actually call you for a chat and understand why you have a bad history. Another word of warning it is likely they will also take the car type into account as a risk factor - so you may need to consider your options.
All the above said - if credit history is REALLY bad then it is unlikely in the current climate you will find any providers.
Hope the above is of use and good luck.
If your credit history is poor but not terrible then there are still some sub prime lenders worth talking to, however do this in the knowledge that your APR you are paying will be much higher than the norm hence overall you will pay alot more for the car, i.e a 23k car may end up costing you £30-£35k. However if you are happy with this then you need to find the right provider. Most motor finance companies go through dealers not direct to consumers.
You will need a decent deposit - this will help get the loan, the advantage of motor finance is they have the car as security so CAN (under the right conditions) be more willing to lend.
Before you apply for anything - get a copy of your credit file and make sure it is correct - much as it may not look brilliant make sure it is accurate. Check you are on the electoral roll at your house, make sure your new credit card is reporting properly.
When you find the car check who the dealer uses for funding - most have some kind of sub primer provider. There used to be a lot more in the market pre-recession. But now the kind of names you should be looking out for are - Close Motor Finance (prime & near prime), Carlyle Finance (near prime & light sub prime), The funding Corporation (Sub prime) & Advantage Motor Finance (sub prime). Just to reiterate - YOU WILL PAY HIGHER APR's and the app process will be longer. The smaller companies such as Advantage will normally actually call you for a chat and understand why you have a bad history. Another word of warning it is likely they will also take the car type into account as a risk factor - so you may need to consider your options.
All the above said - if credit history is REALLY bad then it is unlikely in the current climate you will find any providers.
Hope the above is of use and good luck.
sanf said:
It depends on how BAD your credit history is and the reasons behind it. Money earned is a factor, however so is affordability taken into account - so you may be earning £5k gross, but if you have a big mortgage and 6 kids then the affordability indexes used by most lenders will limit the amount per month they view as you being able to pay. So make sure first of all you get your sums right.
If your credit history is poor but not terrible then there are still some sub prime lenders worth talking to, however do this in the knowledge that your APR you are paying will be much higher than the norm hence overall you will pay alot more for the car, i.e a 23k car may end up costing you £30-£35k. However if you are happy with this then you need to find the right provider. Most motor finance companies go through dealers not direct to consumers.
You will need a decent deposit - this will help get the loan, the advantage of motor finance is they have the car as security so CAN (under the right conditions) be more willing to lend.
Before you apply for anything - get a copy of your credit file and make sure it is correct - much as it may not look brilliant make sure it is accurate. Check you are on the electoral roll at your house, make sure your new credit card is reporting properly.
When you find the car check who the dealer uses for funding - most have some kind of sub primer provider. There used to be a lot more in the market pre-recession. But now the kind of names you should be looking out for are - Close Motor Finance (prime & near prime), Carlyle Finance (near prime & light sub prime), The funding Corporation (Sub prime) & Advantage Motor Finance (sub prime). Just to reiterate - YOU WILL PAY HIGHER APR's and the app process will be longer. The smaller companies such as Advantage will normally actually call you for a chat and understand why you have a bad history. Another word of warning it is likely they will also take the car type into account as a risk factor - so you may need to consider your options.
All the above said - if credit history is REALLY bad then it is unlikely in the current climate you will find any providers.
Hope the above is of use and good luck.
thanks sanf,the above was what i was lookinng for,close and carlle ring a bell the others are new to me.If your credit history is poor but not terrible then there are still some sub prime lenders worth talking to, however do this in the knowledge that your APR you are paying will be much higher than the norm hence overall you will pay alot more for the car, i.e a 23k car may end up costing you £30-£35k. However if you are happy with this then you need to find the right provider. Most motor finance companies go through dealers not direct to consumers.
You will need a decent deposit - this will help get the loan, the advantage of motor finance is they have the car as security so CAN (under the right conditions) be more willing to lend.
Before you apply for anything - get a copy of your credit file and make sure it is correct - much as it may not look brilliant make sure it is accurate. Check you are on the electoral roll at your house, make sure your new credit card is reporting properly.
When you find the car check who the dealer uses for funding - most have some kind of sub primer provider. There used to be a lot more in the market pre-recession. But now the kind of names you should be looking out for are - Close Motor Finance (prime & near prime), Carlyle Finance (near prime & light sub prime), The funding Corporation (Sub prime) & Advantage Motor Finance (sub prime). Just to reiterate - YOU WILL PAY HIGHER APR's and the app process will be longer. The smaller companies such as Advantage will normally actually call you for a chat and understand why you have a bad history. Another word of warning it is likely they will also take the car type into account as a risk factor - so you may need to consider your options.
All the above said - if credit history is REALLY bad then it is unlikely in the current climate you will find any providers.
Hope the above is of use and good luck.
you have gave me more to think about.
thanks again mate.
Unless your credit history is really bad i can't see it being too much of a problem getting that kind of finance on that income especially through a main dealer
I have a reasonable but short credit history (only had credit cards for 3 years with low limits but pay the balance monthly, and only other history was a car loan at 18 and a phone contract but am highly geared (take home 25% of the OP, have 20k of student debt and got accepted by BMW UK for a similar amount at sub 10%) It can be done!
I have a reasonable but short credit history (only had credit cards for 3 years with low limits but pay the balance monthly, and only other history was a car loan at 18 and a phone contract but am highly geared (take home 25% of the OP, have 20k of student debt and got accepted by BMW UK for a similar amount at sub 10%) It can be done!
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