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View Full Version : How would you go about getting car finance?



dotnetter
3rd August 2007, 13:16
I'm looking to buy a new Z4 M Coupe, it's alot of money, I'm a contractor so obviously I can afford the monthly payments.

Problem is, when I was a wee bit younger I defaulted on a loan, well the bastards sent it too the debt collectors after I missed a monthly payment, anyway they put on my credit history as defaulted :mad So my score comes out very poor.

Should I even bother trying to get this much finance? Are there any way I could obtain the credit, or have any of you been on this situation before, I'm guessing the financers would prob take one look and laugh. Also the missus would kill me if I secured the house against it so don't want to be doing that.

SizeZero
3rd August 2007, 13:18
Depends what 'wee bit younger' is. It only stays on your records for 6 years, iirc - if it's longer than that then you don't have to declare it.

dotnetter
3rd August 2007, 13:20
about 4 years ago...

I've checked my credit historu myself and I know my score is poor, so I'm guessing car is out the windows, especially borrowing 30-35k anyway (I have about 10k deposit)

Churchill
3rd August 2007, 13:24
about 4 years ago...

I've checked my credit historu myself and I know my score is poor, so I'm guessing car is out the windows, especially borrowing 30-35k anyway (I have about 10k deposit)

Finance? Cash is king in the world of the contractor m'boy!

richard-af
3rd August 2007, 13:24
about 4 years ago...

I've checked my credit historu myself and I know my score is poor, so I'm guessing car is out the windows, especially borrowing 30-35k anyway (I have about 10k deposit)

Some credit Co. will, undoubtedly, take you on, but the APR will be intergalactic... not sure whether they pass debts down the line if you default again... you may end up with a visit from Messrs. Legbreaker & Armsmasher.

Ruprect
3rd August 2007, 13:25
I'm looking to buy a new Z4 M Coupe,

Are you a hairdresser?

dotnetter
3rd August 2007, 13:27
Are you a hairdresser?

it's not a hairdressers cars its a very quick 2 seater coupe :laugh

I might as well forget it then to be honest, ill stick some cash away for a while.

But what with finishing the house, getting married, holidays etc, i never have any bloody savings :tantrum:

sasguru
3rd August 2007, 13:30
But what with finishing the house, getting married, holidays etc, i never have any bloody savings :tantrum:

I wonder why :rolleyes:

r0bly0ns
3rd August 2007, 13:37
When I was a wee lad I had appaling credit as I was missing off the electoral roll for 3 years (my mum took me off her house when I was at Uni, despite me telling her not too!).

I tried my father in law as a guarantor, but no mainstream company would touch me.

In the end I got a 1k loan (no savings fresh out of uni so only a couple of hundred quid for a deposit) through one of these "can't get credit?" firms, I only borrowed a grand because the interest rate was 27%!!
Best avoided if you can.

Red 7
3rd August 2007, 13:50
Have you thought about personal contract hire? (or even YourCo contract hire). Residuals are pretty good on the Z4, hence the rates will be comparitively low.

....and then when you get bored you can chuck the keys back. :smokin

This one's pretty cheap, not the 'M' but I'm sure you could find one :

http://www.lingscars.com/car_detail.php?make_model=471&id=1599&status=0 :D

Ardesco
3rd August 2007, 13:51
When I was a wee lad I had appaling credit as I was missing off the electoral roll for 3 years (my mum took me off her house when I was at Uni, despite me telling her not too!).

I tried my father in law as a guarantor, but no mainstream company would touch me.

In the end I got a 1k loan (no savings fresh out of uni so only a couple of hundred quid for a deposit) through one of these "can't get credit?" firms, I only borrowed a grand because the interest rate was 27%!!
Best avoided if you can.

Default makes your credit rating much worse than missing from the electoral roll for a few years. You'd be surprised how many students dissapear of the elctoral roll while they are at uni :)

dotnetter
3rd August 2007, 13:53
Have you thought about personal contract hire? (or even YourCo contract hire). Residuals are pretty good on the Z4, hence the rates will be comparitively low.

....and then when you get bored you can chuck the keys back. :smokin

This one's pretty cheap, not the 'M' but I'm sure you could find one :

http://www.lingscars.com/car_detail.php?make_model=471&id=1599&status=0 :D

I've looked quite heavily into contract hire actually, it seems to make sense even though my account says it's better to be through a personal loan than company contract hire.

They still do a credit check though don't they?

WindyAnna
3rd August 2007, 13:55
Don't buy a car, spend the deposit money you've got on a year's membership with this lot:

http://www.ecurie25.co.uk/

Or a similar club ....

dotnetter
3rd August 2007, 14:01
I've looked into that also would be nice ot have a decent car and also join something like this.

was looking at P1 and GT Club

Red 7
3rd August 2007, 14:02
I've looked quite heavily into contract hire actually, it seems to make sense even though my account says it's better to be through a personal loan than company contract hire.

They still do a credit check though don't they?

Personal contract hire is your alternative if you want to hire and your accountant thinks YourCo contract hire is a bad idea.

Personal loan (or) HP (or) HP + balloon payment (PCP) are a whole different ballgame.

Yes you will be credit checked for contract hire, but I think you'll find the credit scoring isn't quite as harsh as turning up at a franchised dealership and asking for finance. All depends how bad your rating is really.

Your default is on file for 6 years (that's 6 years after your last payment against it - not six years after it appeared) but some finance co's will only check the last 3 or 4 years of history,

It won't be easy to arrange, but it is possible.

gingerjedi
3rd August 2007, 14:24
Have you thought about personal contract hire? (or even YourCo contract hire). Residuals are pretty good on the Z4, hence the rates will be comparitively low.

....and then when you get bored you can chuck the keys back. :smokin

This one's pretty cheap, not the 'M' but I'm sure you could find one :

http://www.lingscars.com/car_detail.php?make_model=471&id=1599&status=0 :D

It's that crazy Chinese girl they had on Dragons den! She went around the country with a hand painted routmaster bus to advertise her business, fair play to her. :yay:

Her website is a mess though... tone it down a bit love :glasses

dotnetter
3rd August 2007, 14:27
Yeah I'm not giving my money to that crazy missing link :nerd

Bagpuss
3rd August 2007, 15:25
Why not apply for a 0% credit card and see what happens? you might get one in todays climate. If so just keep shifting the debt.
I currently have 20k on 0% earning interest.

as churchil said cash is king, expect 5-10% off list for cash

VectraMan
3rd August 2007, 15:31
Do you know any respectable Italian businessmen? I've heard they're quite keen to loan money to people like you.

oraclesmith
3rd August 2007, 15:42
I'm looking to buy a new Z4 M Coupe, it's alot of money, I'm a contractor so obviously I can afford the monthly payments.

Just because you can afford it, doesn't mean you should buy it !

And just because you can afford it today, doesn't mean you can afford it tomorrow.

Interest rates rising, property market crashing, shares tumbling - you'll need all the money you can get.

Bagpuss
3rd August 2007, 15:48
Have you thought about personal contract hire? (or even YourCo contract hire). Residuals are pretty good on the Z4, hence the rates will be comparitively low.

....and then when you get bored you can chuck the keys back. :smokin

This one's pretty cheap, not the 'M' but I'm sure you could find one :

http://www.lingscars.com/car_detail.php?make_model=471&id=1599&status=0 :D

For that se model that's 11,273 for 2 years hire. Expensive!

donaldduke
3rd August 2007, 17:03
Just because you can afford it, doesn't mean you should buy it !

And just because you can afford it today, doesn't mean you can afford it tomorrow.

Interest rates rising, property market crashing, shares tumbling - you'll need all the money you can get.

Agree, a car like this costs over 10K a year to own and run.

fzbucks
3rd August 2007, 21:24
Have you thought about personal contract hire? (or even YourCo contract hire). Residuals are pretty good on the Z4, hence the rates will be comparitively low.

....and then when you get bored you can chuck the keys back. :smokin

This one's pretty cheap, not the 'M' but I'm sure you could find one :

http://www.lingscars.com/car_detail.php?make_model=471&id=1599&status=0 :D

Is that website for real or a pi$$take?

kirk
3rd August 2007, 21:26
Is that website for real or a pi$$take?

It's real, she's been on Dragon's Den on BBC2 :)

fzbucks
3rd August 2007, 21:58
It's real, she's been on Dragon's Den on BBC2 :)

I've seen lots of people on dragons den that I wouldn't hand any money over to :happy

GreenerGrass
4th August 2007, 08:56
Just buy a used 350Z for cash until you can afford a used M car thats already taken a big depreciation hit. Otherwise you won't have enough to spend on your wife and she'll leave you and financially ruin you for life.

And read Rich Dad Poor Dad.

dotnetter
4th August 2007, 09:11
I'm gonna get that as a audiobook actually, what's it actually about and why do people keep recommending it to me?

I didn't come from a rich background :laugh

GreenerGrass
4th August 2007, 10:16
I didn't come from a rich background :laugh

Neither did "Rich Dad".

BoredBloke
4th August 2007, 13:11
I can't see the point of this. You want to buy an expensive car which will instantly lose thousands the second you take delivery. To do so you are willing to take on finance which will be at a stupid apr, rather than wait 2 years for your credit history to repair itself.

Why not simply sink the 10k into a good second hand car and wait until you can get cheap finance rather than be saddled with a big loan at a stupid rate. Over the next 2 years you can then build up your 10k again and trade in your second hand car - probably not worth too much 2 years down the line, but it won't be worth 0.

How much do you reckon a z4m coupe will lose in value over the next 2 years?

Bagpuss
6th August 2007, 10:20
How much do you reckon a z4m coupe will lose in value over the next 2 years?

It will be slightly less than the contract hire, the se was 11k, the z4 m will be 15k plus. With credit the car will have cost him 10k a year. IMHO not worth it

donaldduke
6th August 2007, 10:31
It will be slightly less than the contract hire, the se was 11k, the z4 m will be 15k plus. With credit the car will have cost him 10k a year. IMHO not worth it

Not to mention Group 20 insurance, probably something like 2K a year.
And £400 a year road tax.
And doing 10K miles in 3.2 liter is going to drink around 4K in petrol.