Finance Swap Deal
Discussion
Does anyone have experience of buying a 430 or gallardo and taking over the finance payments?
If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
What would be far better is if I could take over another persons payments to the HP firm. Carry out the sale as you normally would with V5 etc and any deposit/cash payment either way with a legal agreement stating I am responsible for the payments and make them direct to the finance company.
The previous owner doesnt own the car anyway as the finance company do.
Example:
430 spider for sale at 75K, has 65K outstanding finance to Santander.
agree to pay 75k, pay 10k to owner direct upon sales documantion being signed (do it via a dealer if required) then change direct debit details to continue to pay santander.
Is their a process that exists to allow this to happen without transferring the finance into your own name?
cheers
J
If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
What would be far better is if I could take over another persons payments to the HP firm. Carry out the sale as you normally would with V5 etc and any deposit/cash payment either way with a legal agreement stating I am responsible for the payments and make them direct to the finance company.
The previous owner doesnt own the car anyway as the finance company do.
Example:
430 spider for sale at 75K, has 65K outstanding finance to Santander.
agree to pay 75k, pay 10k to owner direct upon sales documantion being signed (do it via a dealer if required) then change direct debit details to continue to pay santander.
Is their a process that exists to allow this to happen without transferring the finance into your own name?
cheers
J
Jamster said:
Does anyone have experience of buying a 430 or gallardo and taking over the finance payments?
If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
What would be far better is if I could take over another persons payments to the HP firm. Carry out the sale as you normally would with V5 etc and any deposit/cash payment either way with a legal agreement stating I am responsible for the payments and make them direct to the finance company.
The previous owner doesnt own the car anyway as the finance company do.
Example:
430 spider for sale at 75K, has 65K outstanding finance to Santander.
agree to pay 75k, pay 10k to owner direct upon sales documantion being signed (do it via a dealer if required) then change direct debit details to continue to pay santander.
Is their a process that exists to allow this to happen without transferring the finance into your own name?
cheers
J
Think about how the loan was underwritten.If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
What would be far better is if I could take over another persons payments to the HP firm. Carry out the sale as you normally would with V5 etc and any deposit/cash payment either way with a legal agreement stating I am responsible for the payments and make them direct to the finance company.
The previous owner doesnt own the car anyway as the finance company do.
Example:
430 spider for sale at 75K, has 65K outstanding finance to Santander.
agree to pay 75k, pay 10k to owner direct upon sales documantion being signed (do it via a dealer if required) then change direct debit details to continue to pay santander.
Is their a process that exists to allow this to happen without transferring the finance into your own name?
cheers
J
It would have all been done of the vendors salary, outgoings etc.
You could have a completely different risk profile.
Jamster said:
Does anyone have experience of buying a 430 or gallardo and taking over the finance payments?
If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
Why does taking a loan make you less loan worthy? From all my experience....if a credit company lends you money and you pay it back, they love you, and your credit rating goes up. Only risk is if you don't pay it.If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
ferdi p]amster said:
If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
Never heard such rubbish!
From my experience, its the opposite!
its all based on outgoings, if i have 1200/month further outgoings on a 5k/month salary and apply for a 100k mortgage the next day it will not be accepted as my affordability criteria has tightened. Never heard such rubbish!
From my experience, its the opposite!
can you share your experience? obviously your not suggesting the more finance i get the more people will want to give me even more finance? that would be ludicrous. I dont understand what you mean?
kbf1981 said:
Why does taking a loan make you less loan worthy? From all my experience....if a credit company lends you money and you pay it back, they love you, and your credit rating goes up. Only risk is if you don't pay it.
What happens is your credi rating will decrease on the 15th of the month from 999 assuming you were perfect to around 800, it will then recover slowly, to much credit is bad no matter if you never miss a payment. Underwriting criteria for property commercial loans and mortgages is super tight at the moment. If you have credit cards, personal loans, etc it all gets taken into account. The bigger the loan the worse you look no matter if you pay it or not.Jamster said:
ferdi p]amster said:
If i take finance myself and do it the standard way I will kill my availability to get future credit commercial loans/ mortgages etc.
Never heard such rubbish!
From my experience, its the opposite!
its all based on outgoings, if i have 1200/month further outgoings on a 5k/month salary and apply for a 100k mortgage the next day it will not be accepted as my affordability criteria has tightened. Never heard such rubbish!
From my experience, its the opposite!
can you share your experience? obviously your not suggesting the more finance i get the more people will want to give me even more finance? that would be ludicrous. I dont understand what you mean?
if you have outstanding credit of 80k, they are likely (not definately) to knock that off the amount they will lend you..
ferdi p said:
using your figures, if you earn 60k pa, u can borrow at least 180k (maybe up to 240)
if you have outstanding credit of 80k, they are likely (not definately) to knock that off the amount they will lend you..
A mortgage lender will annualise the monthly payment of the credit and deduct it from the annual earnings. So if the finance was £1000 a month they would deduct £12k from his £60k earnings, leaving £48k, which is more than enough to borrow £100k.if you have outstanding credit of 80k, they are likely (not definately) to knock that off the amount they will lend you..
Jamster said:
What happens is your credi rating will decrease on the 15th of the month from 999 assuming you were perfect to around 800, it will then recover slowly, to much credit is bad no matter if you never miss a payment. Underwriting criteria for property commercial loans and mortgages is super tight at the moment. If you have credit cards, personal loans, etc it all gets taken into account. The bigger the loan the worse you look no matter if you pay it or not.
Mate, as others have said, I don't think you've fully understood how credit ratings work. The more (good) history you have, the better you're rating.I think what you are talking about is an affordability checking exercise which lenders now do to comply with responsible lending guidelines, but this doesn't affect your credit rating.
What you appear to be doing is trying to borrow money using someone else's name without any lenders knowing about it and then borrow more money properly in your own name. I presume you know this is fraud and even if that doesn't bother you, I'm not sure what you could gain here unless you already know you have a bad rating for some reason and would get turned down for the finance and if that's the case, perhaps there is a good reason you can't get finance in your own name.
Am I missing something
As stated, it doesn't seem like it's the actual credit rating that you're worried about. It's that a bank will look at your income vs outgoings when you apply for further credit / mortgage - and limit what they'll lend you based on that. I think there's probably a good reason they do that......
kryten22uk said:
FWIW there are a plethora of lease swapping websites out there. Dont know how it works or how legit they are but they seem to think that, firstly it can be done, and secondly that there is a market for it.
There is a market for lease swapping but it involves the person who takes on the lease being underwritten as if they were taking it out at the outset. Naturally the name on the agreement will change to the new owner. The OP is talking about trying to find a way to gain finance on a car without it being in his name lolHuh? I'm getting confused regarding the points of having more finance reduces the availability of additional finance.
When I took out the finance on my car, my rating plummeted and it says words to the effect that I have a very large amount on finance etc.
Surely anybody else would then look at the lower number and I'd be less likely to get finance on something else?
When I took out the finance on my car, my rating plummeted and it says words to the effect that I have a very large amount on finance etc.
Surely anybody else would then look at the lower number and I'd be less likely to get finance on something else?
Edited by Shmee on Friday 4th November 10:00
Shmee said:
Huh? I'm getting confused regarding the points of having more finance reduces the availability of additional finance.
When I took out the finance on my car, my rating plummeted and it says words to the effect that I have a very large amount on finance etc.
Surely anybody else would then look at the lower number and I'd be less likely to get finance on something else?
Your 'score' is only a score given to you by Experian/Equifax etc. They don't lend you the money, so in reality it means bugger all. You can have a score of 999 and still get refused for not being on the electoral roll etc.When I took out the finance on my car, my rating plummeted and it says words to the effect that I have a very large amount on finance etc.
Surely anybody else would then look at the lower number and I'd be less likely to get finance on something else?
Edited by Shmee on Friday 4th November 10:00
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