Can you get vehicle finance when you have bad credit?

[gsfrontera]

Hi all.

A friend of mine is looking to purchase a new vehicle, but is concerned that he wont be able to get finance on it. The new vehicle is about 8k, and his current car is worth about 5k, which he will be putting in as part exchange, so he would need about 3k finance on an 8k car.

He is fully employed earning about 24k per year. His only problem is that he was made bankrupt last year due to his business, and was discharged in January this year (so nearly 12 months ago)

Ive told him to just go into the garage and ask if they can help, but he doesnt was to sit there all embarassed if they say no.

Is anyone in the trade who can give me an idea if he stands a chance.

Thanks.

[Soovy]

Why does he need to upgrade?

Vanity, one assumes.


He's been bankrupt, so I imagine he has go zero chance.

[Pork]

Soovy said:

Why does he need to upgrade?

Vanity, one assumes.


He's been bankrupt, so I imagine he has go zero chance.

Or will just get bummed on the interest.

[gsfrontera]

Soovy said:

Why does he need to upgrade?

Vanity, one assumes.


He's been bankrupt, so I imagine he has go zero chance.

Your right, just fancies a change so he says.

[al1991]

If he can, it will cost.

[Soovy]

gsfrontera said:

Soovy said:

Why does he need to upgrade?

Vanity, one assumes.


He's been bankrupt, so I imagine he has go zero chance.

Your right, just fancies a change so he says.

He's going to have to learn the concept of consequences.

[r1ch]

If his cars worth 5k, he won't be getting that on a part ex. Its a good deposit, probably get it but end up paying a fair whack.

[deeen]

He is only discharged from the point of view of the court, it is on his credit record for 6 years from date of bankruptcy.

He's on 24k?

Advise him to save 500 a month, and buy his car in a year.

[kambites]

I might be being naive, but if the loan is secured against the car and the term of the loan is such that the value of the car wont drop below the value of the loan during its duration, why would credit rating matter?

[gsfrontera]

Soovy said:

gsfrontera said:

Soovy said:

Why does he need to upgrade?

Vanity, one assumes.


He's been bankrupt, so I imagine he has go zero chance.

Your right, just fancies a change so he says.

He's going to have to learn the concept of consequences.

Maybe so. But its not my place to teach him, im just trying to help him out a bit, and i think he has learnt the concept. He lost his house in the court proceedings, along with many other assets and savings.

Edited by gsfrontera on Thursday 9th December 17:54

[Soovy]

kambites said:

I might be being naive, but if the loan is secured against the car and the term of the loan is such that the value of the car wont drop below the value of the loan during its duration, why would credit rating matter?

Would you lend money to someone who shafted his creditors before?

Neither would I.

[Ray Luxury-Yacht]

Soovy said:

He's going to have to learn the concept of consequences.

then said:

Would you lend money to someone who shafted his creditors before? Neither would I.

Actually mate, I'm gonna have to bite at those comments.

You don't know why his business went under, but let me hazard a guess. The worst fking bloodbath in history perhaps?

My business has been hammered. My Porsche is long gone (as is yours, I know ) but so is my bike, and most of my stuff. In fact everything I owned has gone on ebay apart fom my CD's and my PC. I have moved back in with Mum. I have fk all money now, and drive a Skoda.

All to keep my business afloat and six people's livelihoods safe who work there. And before you say it's because I'm crap at marketing or sales, I'm not. It used to make me a good living. Now it just makes me sick.

We're not all on nice salaries in safe jobs.

So please, knock it off, I think your comments are out of order bud.

[Thankyou4calling]

Ray Luxury-Yacht said:

Soovy said:

He's going to have to learn the concept of consequences.

then said:

Would you lend money to someone who shafted his creditors before? Neither would I.

Actually mate, I'm gonna have to bite at those comments.

You don't know why his business went under, but let me hazard a guess. The worst fking bloodbath in history perhaps?

My business has been hammered. My Porsche is long gone (as is yours, I know ) but so is my bike, and most of my stuff. In fact everything I owned has gone on ebay apart fom my CD's and my PC. I have moved back in with Mum. I have fk all money now, and drive a Skoda.

All to keep my business afloat and six people's livelihoods safe who work there. And before you say it's because I'm crap at marketing or sales, I'm not. It used to make me a good living. Now it just makes me sick.

We're not all on nice salaries in safe jobs.

So please, knock it off, I think your comments are out of order bud.

Well said sir.

[eldar]

Ray Luxury-Yacht said:

Soovy said:

He's going to have to learn the concept of consequences.

then said:

Would you lend money to someone who shafted his creditors before? Neither would I.

Actually mate, I'm gonna have to bite at those comments.

You don't know why his business went under, but let me hazard a guess. The worst fking bloodbath in history perhaps?

My business has been hammered. My Porsche is long gone (as is yours, I know ) but so is my bike, and most of my stuff. In fact everything I owned has gone on ebay apart fom my CD's and my PC. I have moved back in with Mum. I have fk all money now, and drive a Skoda.

All to keep my business afloat and six people's livelihoods safe who work there. And before you say it's because I'm crap at marketing or sales, I'm not. It used to make me a good living. Now it just makes me sick.

We're not all on nice salaries in safe jobs.

So please, knock it off, I think your comments are out of order bud.

He's a bad credit risk. Has a half reasonable car from being bankrupt a year ago. He wants to trade up to a slightly better car using borrowed money. Why?

Why don't you lend him the money?

[kambites]

Soovy said:

kambites said:

I might be being naive, but if the loan is secured against the car and the term of the loan is such that the value of the car wont drop below the value of the loan during its duration, why would credit rating matter?

Would you lend money to someone who shafted his creditors before?

Neither would I.

If it was secured against an asset that had insignificant chance of dropping below the value of the loan, why not?

[Ray Luxury-Yacht]

eldar said:

Ray Luxury-Yacht said:

Soovy said:

He's going to have to learn the concept of consequences.

then said:

Would you lend money to someone who shafted his creditors before? Neither would I.

Actually mate, I'm gonna have to bite at those comments.

You don't know why his business went under, but let me hazard a guess. The worst fking bloodbath in history perhaps?

My business has been hammered. My Porsche is long gone (as is yours, I know ) but so is my bike, and most of my stuff. In fact everything I owned has gone on ebay apart fom my CD's and my PC. I have moved back in with Mum. I have fk all money now, and drive a Skoda.

All to keep my business afloat and six people's livelihoods safe who work there. And before you say it's because I'm crap at marketing or sales, I'm not. It used to make me a good living. Now it just makes me sick.

We're not all on nice salaries in safe jobs.

So please, knock it off, I think your comments are out of order bud.

He's a bad credit risk. Has a half reasonable car from being bankrupt a year ago. He wants to trade up to a slightly better car using borrowed money. Why?

Why don't you lend him the money?

No, no, I didn't mean we should all justify further borrowing. Of course he should cut his cloth according to his situation. I have.

What I was getting at is that he was being taken to task for his bankruptcy like it was his own stupid, irresponsible fault.

There are many who have gone bankrupt or at least onto an IVA who have been ridiculous idiots financing themselves up to the hilt with consumer goods when things were booming. But a lot of them were just ordinary people on salaries in jobs.

Then you have other people like me and maybe the OP who have been reasonably careful and only borrowed sensibly to invest in their businesses. But their businesses have been hammered and they now find themselves unable to service their creditors.

It's not always necessarily their fault, ok you should always try to plan for uncertainty in business, but to forsee what we've just been through would have taken a huge crystal ball for the average bloke.

And yes, I am aware that some clever buggers saw it coming, but most of us aren't financial whizz kids or have their fingers on the pulse of the city, the bankers and the financial commentators.

My business is a service based 'luxury - ish' spend, namely a hair, tanning and beauty salon. Of course, this is the first thing that people knock spending on, on the head.

In my defence, my salon used to be just tanning and beauty, but I did see a bit of a storm on the horizon, so I installed three hairdressers to take up some of the slack. Thank God I did, because hair is the only thing that is sustaining us now. It seems women will give up everything except a good hair stylist! If I hadn't taken that decision 18 months ago, the doors would have been well shut by now.

So cut some of us a bit of slack, eh? There are a few who have had a rough, rough time of it, through no fault of their own. And maybe, just maybe, I would have thought that as this was a predominantly petrolhead website, that there would be a bit of sympathy to a few individuals that despite thier bad financial position, still want to be driving nice cars, in some way, before they die.

If the OP was talking about financing existing credit card debt for a load of designer clothes, big tellys or other consumer crap, I'd understand the flaming.

But he wants cars, Godammit! You know, cars???!! What we ALL love on here!

Give him a little break dudes.

[eldar]

Ray Luxury-Yacht said:

If the OP was talking about financing existing credit card debt for a load of designer clothes, big tellys or other consumer crap, I'd understand the flaming.

But he wants cars, Godammit! You know, cars???!! What we ALL love on here!

Give him a little break dudes.

He's got a car, presumably a half reasonable one he owes no money on. To trade up to a slightly better one he can't afford without access to expensive borrowing seems to me to be in the expensive telly crap area.

Keep the existing one and save the interest, dealer markup, depreciation and repayments for a year and but the better one outright.

No judgement about why bankrupt, just avoid debt for two or three years?

[Ray Luxury-Yacht]

eldar said:

Ray Luxury-Yacht said:

If the OP was talking about financing existing credit card debt for a load of designer clothes, big tellys or other consumer crap, I'd understand the flaming.

But he wants cars, Godammit! You know, cars???!! What we ALL love on here!

Give him a little break dudes.

He's got a car, presumably a half reasonable one he owes no money on. To trade up to a slightly better one he can't afford without access to expensive borrowing seems to me to be in the expensive telly crap area.

Keep the existing one and save the interest, dealer markup, depreciation and repayments for a year and but the better one outright.

No judgement about why bankrupt, just avoid debt for two or three years?

Hmm. Of course, you are right mate, yes.

But it's cars innit? They'll be the death of me and my bank balance, I'm sure, lol!

I can abstain from all other unecessary expenditure. Big tellys? Pah. Designer clothes? Uh-uh. New kitchens / bathrooms / whatevers? I'll leave it, thanks.

Shiny but unecessary magpie car bits milled from billet aluminium or carbon fibre?

I'm all ears *Thinks* fk British Gas, they can wait

[NorthernBoy]

gsfrontera said:

Hi all.

A friend of mine is looking to purchase a new vehicle, but is concerned that he wont be able to get finance on it. The new vehicle is about 8k, and his current car is worth about 5k, which he will be putting in as part exchange, so he would need about 3k finance on an 8k car.

He is fully employed earning about 24k per year. His only problem is that he was made bankrupt last year due to his business, and was discharged in January this year (so nearly 12 months ago)

Ive told him to just go into the garage and ask if they can help, but he doesnt was to sit there all embarassed if they say no.

Is anyone in the trade who can give me an idea if he stands a chance.

Thanks.

So he hasn't saved up a penny towards it himself, just wants to put it all on credit?

I think that perhaps instead of buying a new car, he wants to have himself a sit down and ask whether he needs to re-think his relationship with money.

[MalcQV]

NorthernBoy said:

So he hasn't saved up a penny towards it himself, just wants to put it all on credit?

I think that perhaps instead of buying a new car, he wants to have himself a sit down and ask whether he needs to re-think his relationship with money.

Well he has kind of, the money in his existing car.

Just my opinion based purely on a few posts in a thread. It has been hard for all businesses over the last 18 months and we are not over it yet, so my guess is the OP's friend like many has just been caught out.

My finances are low because of personal circumstances but I know about wanting to drive something better, my daily hack is a perfectly adequate Rover 25 but I yearn for something a little better. I will wait until my finances are slightly better but fully understand the need for cars . I would just go and speak to them, and not to be embarrassed by bankruptcy as after all it is rife these days . If he can afford it then do it and enjoy, but if not just wait his time will come

Edited by MalcQV on Saturday 11th December 12:34

Edited by MalcQV on Saturday 11th December 12:35