guaranteed car finance....
Discussion
Hi, I've been lurking these boards for years so i've decided to sign up.
As the title suggests my question is about guaranteed car finance, and mainly my chance of getting it... This is my current situation, I've just turned 24 yrs old, been out of uni for a couple of years and have spent the past two years sort of off the radar a bit learning my trade, which my family kindly funded me to learn with the little money they had.
After spending 2 years learning the business that I wanted to get into, I went into business for myself in October 2009. Prior to this, my last job was working in a bar when I was at uni. Anyway, since starting, I've made around £43,000 from the start of October up until now, and out of that I've paid money back to my family that they spent so I could learn what I do. Up until a couple of weeks ago I got up to about 12,000 in my bank after paying back money to my parents, then there was an illness in the family that required me to lend some money to a family memeber to pay for some drugs to help them survive a heart attack, and this pretty much took me all the way back down to the wire. I literally got down to about £200 and thought I was done for and going under. Anyway.... the deals that I had lined up finally went through and I've currently got just short of £30,000 in savings sat in my bank.
Now I haven't had a car for 2 years, and the last car I had was a banger.... I always wanted a 3 series M sport coupe, and now i'm itiching to get one. I'm looking to get something along the lines of this http://pistonheads.co.uk/sales/1583964.htm with a max budget of £14,000 so I can get a real nice one. Toyed with the idea of an e46 M3, but insurance will be a bomb as i'm only 24, and I'm guessing running a car like that will cost some serious cash. So toys like an M3 can wait until the future when i've got more cash behind me
Now, business wise, I have around another £10,000 to lined up for next month, but I don't want to plow half of my savings into a car, so I can maintain strong cash flow for whatever happens.
Now given that I've got no credit history, pretty much been off the radar for 2 years, what are my chances of guarenteed car finance in the way of a loan that is secured on the vehicle? What I would like to do is to pay for half the value of the car in cash, and then finance the other half with a secured loan. So say I find a nice low milage 330 M sport for £14,000... I'd like to pay £7000 in cash and then take a secured loan of £7000 for the rest.... The way I see it, if I wait another 2 months, I'll probably be able to pay for the full £14,000 in cash and still have plenty of cash in the bank in savings, but I will still have no credit rating. So i'm looking at it as a way to get the car that I want now, and in way that enables me to get on the radar with a credit rating, which is low risk to myself and to the lender...
So given that I've been off the radar, and my finances described above, what do you guys think my chances are? The reason why I ask, when I had a balance of 12k in the bank, and I went down to £200 due to the illness in the family, my bank wouldn't even give me an overdraft for £500 which completely shocked me given the regular money that was going into the account, especially at my age, so it's made me think I won't have a chance to finance the bmw in the way I described above.
I know some people will say that I'll get it because it's guaranteed car finance, but what worries me is the fact that I've been off the radar, just appeared again as being self employeed, only been self employeed for & months, and the last job I had was a couple of years ago pulling pints. I don't want to apply if I know i'm just going to get rejected and get a black mark next to my name.
Many thanks in advance for your replies
As the title suggests my question is about guaranteed car finance, and mainly my chance of getting it... This is my current situation, I've just turned 24 yrs old, been out of uni for a couple of years and have spent the past two years sort of off the radar a bit learning my trade, which my family kindly funded me to learn with the little money they had.
After spending 2 years learning the business that I wanted to get into, I went into business for myself in October 2009. Prior to this, my last job was working in a bar when I was at uni. Anyway, since starting, I've made around £43,000 from the start of October up until now, and out of that I've paid money back to my family that they spent so I could learn what I do. Up until a couple of weeks ago I got up to about 12,000 in my bank after paying back money to my parents, then there was an illness in the family that required me to lend some money to a family memeber to pay for some drugs to help them survive a heart attack, and this pretty much took me all the way back down to the wire. I literally got down to about £200 and thought I was done for and going under. Anyway.... the deals that I had lined up finally went through and I've currently got just short of £30,000 in savings sat in my bank.
Now I haven't had a car for 2 years, and the last car I had was a banger.... I always wanted a 3 series M sport coupe, and now i'm itiching to get one. I'm looking to get something along the lines of this http://pistonheads.co.uk/sales/1583964.htm with a max budget of £14,000 so I can get a real nice one. Toyed with the idea of an e46 M3, but insurance will be a bomb as i'm only 24, and I'm guessing running a car like that will cost some serious cash. So toys like an M3 can wait until the future when i've got more cash behind me
Now, business wise, I have around another £10,000 to lined up for next month, but I don't want to plow half of my savings into a car, so I can maintain strong cash flow for whatever happens.
Now given that I've got no credit history, pretty much been off the radar for 2 years, what are my chances of guarenteed car finance in the way of a loan that is secured on the vehicle? What I would like to do is to pay for half the value of the car in cash, and then finance the other half with a secured loan. So say I find a nice low milage 330 M sport for £14,000... I'd like to pay £7000 in cash and then take a secured loan of £7000 for the rest.... The way I see it, if I wait another 2 months, I'll probably be able to pay for the full £14,000 in cash and still have plenty of cash in the bank in savings, but I will still have no credit rating. So i'm looking at it as a way to get the car that I want now, and in way that enables me to get on the radar with a credit rating, which is low risk to myself and to the lender...
So given that I've been off the radar, and my finances described above, what do you guys think my chances are? The reason why I ask, when I had a balance of 12k in the bank, and I went down to £200 due to the illness in the family, my bank wouldn't even give me an overdraft for £500 which completely shocked me given the regular money that was going into the account, especially at my age, so it's made me think I won't have a chance to finance the bmw in the way I described above.
I know some people will say that I'll get it because it's guaranteed car finance, but what worries me is the fact that I've been off the radar, just appeared again as being self employeed, only been self employeed for & months, and the last job I had was a couple of years ago pulling pints. I don't want to apply if I know i'm just going to get rejected and get a black mark next to my name.
Many thanks in advance for your replies
Surely if you show bank statements proving that you can and do earn enough to pay it off there shouldn't be too much of a problem, also if you secure it against the car they should more than likely offer you the amount. Phone around and explain the situation to them and give them proof of income and bank statements. HTH
SDxsi said:
Surely if you show bank statements proving that you can and do earn enough to pay it off there shouldn't be too much of a problem, also if you secure it against the car they should more than likely offer you the amount. Phone around and explain the situation to them and give them proof of income and bank statements. HTH
Unless he finds a nice friendly local loan agent I doubt this to be the case. The call center staff do little more than put data in, read answer.Call Centre staff - Please do not take offence to the above but it does seem that you input the details that you are asked for and then click calculate. The computer then works out a credit score and then gives a yes, no or need more information decision.
Edited by ymwoods on Friday 23 April 06:23
If you do manage to get credit for this my guess is that you'll be spanked on the interest rate. A guy I know was offered a business startup loan recently, he was putting 50% of the money in himself and the banks part was being guaranteed by his parents - the interest rate was about 25%!!!
We bailed these b
ds out of a problem they created and this is how they help to get things moving again 
To OP, just get by for another month or two then buy the car with cash and as already suggested, do other things to establish a decent credit score.
We bailed these b
ds out of a problem they created and this is how they help to get things moving again To OP, just get by for another month or two then buy the car with cash and as already suggested, do other things to establish a decent credit score.
ymwoods said:
SDxsi said:
Surely if you show bank statements proving that you can and do earn enough to pay it off there shouldn't be too much of a problem, also if you secure it against the car they should more than likely offer you the amount. Phone around and explain the situation to them and give them proof of income and bank statements. HTH
Unless he finds a nice friendly local loan agent I doubt this to be the case. The call center staff do little more than put data in, read answer.Call Centre staff - Please do not take offence to the above but it does seem that you input the details that you are asked for and then click calculate. The computer then works out a credit score and then gives a yes, no or need more information decision.
Edited by ymwoods on Friday 23 April 06:23
t11ner said:
To OP, just get by for another month or two then buy the car with cash and as already suggested, do other things to establish a decent credit score.
I would do this. Perhaps get an older, respectable looking car until you build up some more savings/credit rating and more importantly - driving experience.You could get a very respectible looking Merc, BMW, Jag, Lexus (etc) if you are worried about image for your business.
You could even stick on a cheap private plate if you wanted to disguise the age.
Wait the few months you need to and buy the car in cash. Car finance is not a good way to get credit ratings built. Get a credit card with a low limit and put monthly expenses on. Pay off in full each time, never be late or skip. 6 months time get a small over draft. Then you'll have yet more savings, use as a deposit to mortgage a house. Voila, one good credit score.
Try speaking to a reputable Finance company who use manual underwriting - Close Motor Finance come to mind, but there are others out there I am sure. It's the best chance you have as otherwise computer will surely say no.
I suspect given that you are looking to put in 50% that provided they are happy with your story they would feel secured.
I suspect given that you are looking to put in 50% that provided they are happy with your story they would feel secured.
CrudeOil said:
Hi, I've been lurking these boards for years so i've decided to sign up.
As the title suggests my question is about guaranteed car finance, and mainly my chance of getting it...
I've been in jail for the last two years, but I'm a drugs dealer so I can fill my bank account with readies quite easily.
In all seriousness, you seem to to be able to accumulate money incredibly easily. Just save up for 2 or 3 months and buy a car outright?As the title suggests my question is about guaranteed car finance, and mainly my chance of getting it...
I've been in jail for the last two years, but I'm a drugs dealer so I can fill my bank account with readies quite easily.
CrudeOil said:
... After spending 2 years learning the business that I wanted to get into, I went into business for myself in October 2009. Prior to this, my last job was working in a bar when I was at uni. Anyway, since starting, I've made around £43,000 from the start of October up until now, and out of that I've paid money back to my family that they spent so I could learn what I do. ...
It doesn't add up.If you're astute enough to make that sort of money, why on earth would you want that sort of finance that is designed for 'sub prime' market?
As others have said - get a credit card, pay it off in full every month and build yourself a credit history.
I guess you're still LWP, so you can save a good chunk quite quickly.
If you have told all the story; my guess is you don't need that very expensive finance.
I am amazed that anybody would come onto the internet and give so much detail about their financial situation. Surely if you can accumulate money that quickly legally, you could easily pay cash, or your bank would see that you are a good risk and lend you the money in the form of personal loan.
My advice would be to continue lurking and don't be so keen to put all this info on a site like PH. You might as well issue an invitation to the Inland Revenue/Customs & Excise to come and investigate my business dealings. Not saying you are anything but clean but it invites suspicion. And anyway, why do you want the whole world to know?
My advice would be to continue lurking and don't be so keen to put all this info on a site like PH. You might as well issue an invitation to the Inland Revenue/Customs & Excise to come and investigate my business dealings. Not saying you are anything but clean but it invites suspicion. And anyway, why do you want the whole world to know?
Monkeylegend said:
I am amazed that anybody would come onto the internet and give so much detail about their financial situation. Surely if you can accumulate money that quickly legally, you could easily pay cash, or your bank would see that you are a good risk and lend you the money in the form of personal loan.
My advice would be to continue lurking and don't be so keen to put all this info on a site like PH. You might as well issue an invitation to the Inland Revenue/Customs & Excise to come and investigate my business dealings. Not saying you are anything but clean but it invites suspicion. And anyway, why do you want the whole world to know?
agree with this.. seems a little odd..My advice would be to continue lurking and don't be so keen to put all this info on a site like PH. You might as well issue an invitation to the Inland Revenue/Customs & Excise to come and investigate my business dealings. Not saying you are anything but clean but it invites suspicion. And anyway, why do you want the whole world to know?
If you can accumulate money that fast (£43k in around 6months so far - WTF!?) i would wait and buy a car outwright and save yourself from being raped by a finance company for 24/36/48 months..
Can i ask what you do? pharmaceutical's is it ?
Sorry there is something worng here with the OP.
For someone who has started a business and allegedly earnt a reasonable sum in such a short while he must have had to jump through some hoops reagrding business finance and bank a/c etc. and picking up some info on the way
Basically what I am saying if someone can start a successful business as the OP claims but has to come on the internet to find out such basic questions about personal finance, then that person is full of crap..
For someone who has started a business and allegedly earnt a reasonable sum in such a short while he must have had to jump through some hoops reagrding business finance and bank a/c etc. and picking up some info on the way
Basically what I am saying if someone can start a successful business as the OP claims but has to come on the internet to find out such basic questions about personal finance, then that person is full of crap..
OP. Remember you've got a big tax bill coming your way.
You evidently haven't been putting money aside to cover it (hence getting down to your last £200) so I certainly would suggest you go and see an accountant and start planning properly before you're up to your neck in it.
If you need a car buy a banger for now. Be proud of the business you've got going not your wheels.
You evidently haven't been putting money aside to cover it (hence getting down to your last £200) so I certainly would suggest you go and see an accountant and start planning properly before you're up to your neck in it.
If you need a car buy a banger for now. Be proud of the business you've got going not your wheels.
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