Car finance after debt problems

paddyland

My car is due for renewal.

I had a serious mortgage arrears problem for a few years, fell well behind in the payments, played catch-up, sorted it out, and have been fully paid up for the past two years.

I also had an enormous credit union loan, which I had to hammer out a deal to repay. Thankfully, that too is being repaid now, although there is still a couple of thousand to go.

Where do I stand to look for a small finance for another car? I wouldn't want much, but I'm sure I'd need three or four thousand in order not to be buying junk. I'd expect to buy a car that will last a good few years.

Will the car finance people even look at me?

166man

paddyland wrote: »

My car is due for renewal.

I had a serious mortgage arrears problem for a few years, fell well behind in the payments, played catch-up, sorted it out, and have been fully paid up for the past two years.

I also had an enormous credit union loan, which I had to hammer out a deal to repay. Thankfully, that too is being repaid now, although there is still a couple of thousand to go.

Where do I stand to look for a small finance for another car? I wouldn't want much, but I'm sure I'd need three or four thousand in order not to be buying junk. I'd expect to buy a car that will last a good few years.

Will the car finance people even look at me?

Unlikely. Do you need Finance? Buy a car for a few grand not an option?

I think you're mad to consider financing a new car if you could afford to buy your own albeit a cheaper car.

_Kaiser_

First off, fair play to you for taking responsibility and sorting your debts out. There's a lot of people in this country who could learn a lot from your example.

With regards to finance/loans it'll all come down to how much you're earning, what you have left after bills, repayments etc and how much you want but for a small enough number you may be lucky depending on who you bank with. A credit union loan is also worth considering.

I wouldn't go near a finance agreement myself though and certainly not for a car only worth a few grand. Best thing would be to make a call to your bank's loan department and see what they say.

bf

Unless you have at least 5 clean years of credit history, I'm afraid it will be a no go

pcardin

paddyland wrote: »

I wouldn't want much, but I'm sure I'd need three or four thousand in order not to be buying junk. I'd expect to buy a car that will last a good few years.

interesting view. amount of money you pay does not always determine will a car be a junk or not.

biko

Do you have any money at all to use without financing? Even a grand could get you a pretty solid car if you look long enough.
Also "car renewal" doesn't mean much, is there an issue with your current car that can't be fixed?

bazz26

People with a 100% clean credit history are being turned down for finance and/or personal loans these days. I think the odds are really stacked against you OP.

I think you have a better chance talking to your credit union whom you have a track record of sorting out your previous debt problem though if I were in your shoes I would stay clear of potentially getting back into trouble and just buy something within your immediate means.

pcardin

biko wrote: »

Even a grand could get you a pretty solid car if you look long enough.

Absolutely agree. Just most people think for some reason that if newer plate the better the car.
Stay away from finance is the best advice you had here so far.

Scortho

Also what's wrong with the car that it needs to be changed?