Help!-Car Finance-Poor Credit History

brousuka

Can anyone advise me how I could obtain vehicle finance with a past CCJ and a below par credit history. PS; everything is being paid off satisfactorily and full time employment with good salary can be proven. I would be looking at cars for around e5000-e8000. Thanks..........

colm_mcm

these guys look good:


What's your relationship like with your bank now?

Jimbo

Nasty Colm.
Try your local friendly credit union, there usuall pretty liberal with these things

brousuka

Ahmm.. Bank are just about tolerating my current account, but wont give me a car loan. Unfortunately I've no credit union account!

colm_mcm

no harm trying credit union anyway. their lending policy changed a few years ago AFAIK. you used to have to have a certain amount of savings with them.

brousuka

Thanks, I'l give them a try. PS I really laughed at the AD it's brilliant!

Anan1

Rather than borrowing €5-8k for a car, mightn't it be an idea to save up and buy something for €1-2k?

Jimbo

The guy has expensive taste by the looks of things

brousuka

Anan1 wrote: »

Rather than borrowing €5-8k for a car, mightn't it be an idea to save up and buy something for €1-2k?

Well I've got an old car at present with very high mileage, NCT up in January and to be honest there isnt much time left in it. I will also be travelling a bit more from next year and need a reliable safe car. I can afford easily enough to make the repayments on a loan of say 5-8k but just can't seem to get finance.

colm_mcm

to be fair the OP says he's earning reasonable money.

Anan1

Yeah, but he's looking at very high interest rates, that is if anyone will lend to him at all. It's not as if a good, solid, reliable car can't be got for €2,000 these days, so why get shafted unnecessarily?

eamon234

You can laugh at Colm's ad but it's not too far from the truth - still a few of those knockin' about! Mate of mine got caught by one of them a few years ago - remember the crowd endorsed by a certain ex Ireland manager? - What a bunch of scumbags you should have seen the piece of sh1t they sold him with a 30% APR loan - Financial Services Regulator didn't want to know either.

Jimbo

surely he knew it was 30%?

eamon234

I worked for a major car finance company for five years - I can tell you now 90% of people don't know their APR - it's not shown on car finance agreements unless it's a term loan - and when someone can't get finance anywhere else and needs a car badly enough - you'd be surprised what they'd pay.
That's how sub prime lenders make their money.

brousuka

5hit!! there's a lot of food for thought there! I won't get shafted though, cos I'm actually pretty sharp about these things.... even though it wouldn't seem so cos of my current predicament. Has anyone any other stories about these sub-prime lenders that eamon234 was referring to?? PS: Thing is I need a car that looks respectable, a bit of credibility...pardon the pun!

colm_mcm

eamon234 wrote: »

I worked for a major car finance company for five years - I can tell you now 90% of people don't know their APR - it's not shown on car finance agreements unless it's a term loan - and when someone can't get finance anywhere else and needs a car badly enough - you'd be surprised what they'd pay.
That's how sub prime lenders make their money.

Any HP papers (I've used pretty much every major bank) I've gotten people to sign included a total hire purchase price and shows interest payable. In fact, I think it's mandatory to give the customer an intermediary quotation showing all the figures before they sign papers.

brousuka

colm_mcm wrote: »

Any HP papers (I've used pretty much every major bank) I've gotten people to sign included a total hire purchase price and shows interest payable. In fact, I think it's mandatory to give the customer an intermediary quotation showing all the figures before they sign papers.

It would be very easy for some people if given the opportunity to sign on the dotted, for a nice motor, to pay a bit over the odds say e100 per month extra repayments just to get the finance. I think most people don't really read the small print, or, realise the implications-when it comes to nice cars, if you want it you'll do anything for it.

colm_mcm

I have limited sympathy for someone like that. It's very easy to multiply your monthly installment by the term of the loan to get the total amount.

brousuka

colm_mcm wrote: »

I have limited sympathy for someone like that. It's very easy to multiply your monthly installment by the term of the loan to get the total amount.

I agree with you too! I was shocked to hear today the amount of house reposessions from sub-prime mortgage lenders entered in the high court it was 45,000!!! and these are homes, not cars.

eamon234

colm_mcm wrote: »

I have limited sympathy for someone like that. It's very easy to multiply your monthly installment by the term of the loan to get the total amount.

You'd think! Jesus I spent three years in customer services answering calls from people who didn't - very very few people even look at the figures all they want to know is how much it's going to cost them a month - and the ones that did usually had them arseways.

The other two years I spent paying out huge commission cheques to dealers;)

colm_mcm

eamon234 wrote: »

The other two years I spent paying out huge commission cheques to dealers;)

Those dealers!

eamon234

brousuka wrote: »

5hit!! there's a lot of food for thought there! I won't get shafted though, cos I'm actually pretty sharp about these things.... even though it wouldn't seem so cos of my current predicament. Has anyone any other stories about these sub-prime lenders that eamon234 was referring to?? PS: Thing is I need a car that looks respectable, a bit of credibility...pardon the pun!

Well to be honest the case I gave was more of a dealer (you know the ones you normally see advertising on UK daytime TV alongside the ambulance chasers:D) who specialised in getting sub prime finance for it's customers mainly for clapped out cars they buy for half nothing at auctions and try to clean up (most of the time through cleverly hidden subsidiaries of major banks other times they're more transparent)

If you decide you've no choice and have to go the sub prime route try and do it through a reputable dealer and finance house , look at the documentation and know how much it's going to cost you, but rest assured it will cost you!!

brousuka

eamon234 wrote: »

Well to be honest the case I gave was more of a dealer (you know the ones you normally see advertising on UK daytime TV alongside the ambulance chasers:D) who specialised in getting sub prime finance for it's customers mainly for clapped out cars they buy for half nothing at auctions and try to clean up (most of the time through cleverly hidden subsidiaries of major banks other times they're more transparent)

If you decide you've no choice and have to go the sub prime route try and do it through a reputable dealer and finance house , look at the documentation and know how much it's going to cost you, but rest assured it will cost you!!

Yeah, I hear what you're saying. By the way what did happen that company that was fronted by the then Irish soccer team manager?? they appear to be gone a long time!?!

eth0_

If you're an idiot you'll pay 30% APR, and in that case you deserve it!

Any HP/credit card/loan papers I have ever signed have had the APR clearly marked on them. I'd say more people know roughly what their APR is than don't.

brousuka

eth0_ wrote: »

If you're an idiot you'll pay 30% APR, and in that case you deserve it!

Any HP/credit card/loan papers I have ever signed have had the APR clearly marked on them. I'd say more people know roughly what their APR is than don't.

Well friend, I will not pay 30%APR for jack sh*t, not in a million years. But isn't it amazing how many people will, if their nuts are squeezed!??! and no prob, they will!

ixus

Have you sourced a car?
Is it private or garage?
If private, you have to get a personal loan. Really, your only bet is your current bank there and if they won't touch you....
If it's a garage and they apply for a loan for you it really depends on how your credit rating looks on screen.

If you missed a monthly payment you'd get a 1, this then becomes 2,3,4 until paid. Next one starts again. You get a 0 for payment. M for moratorium.

Now if it looks something like :
00003210000431200 - you won't have a chance
000055433210104231 - forget it.
010101010100000 - maybe

Each digit represents a monthly payment.

You'll know yourself from this whether you'll get it.

Also, most banks aren't so interested in 5K, they'll crucify you in charges, much better to get a personal loan.

Thing is with Credit Union, it doesn't go on Credit History so if you get this and manage to make all payments, next time you go for a loan, it won't show.

If you're in the situation where your bank only lets you have a current account I'd advise you to focus on saving your wages.

Try and save 250 - 300 pm if possible (depending on your wages). In 6 months time you'll have saved up to 1800. go back to your bank and discuss a loan showing that you've changed your debt ridden days!

A 60 month loan at 100pm = 5/6K plus your savings (roughly).

You should be able to get that in 6 months depending how bad your credit rating was.

drdre

Have you tried bank of ireland,They have a car loan month so maybe they might give you a loan

Anan1

drdre wrote: »

Have you tried bank of ireland,They have a car loan month so maybe they might give you a loan