Car Finance

[EvilWheel]

Hello, Is applying for car finance different to a loan? Do the lenders take into the account that you have a car they can repocess if you cant repay?
I ask this as my credit rating is only 354 from Experian which is really low,

[spikeybob]

I used to work in a car dealership so this is not gospel if you have a low credit rating is it because you have no credit what so ever or have you defaulted on credit in the past if you have defaulted then it will be difficult. There are what are called sub prime lenders who will give you credit but a higer price i.e. bigger interest as they deem it a risk of you paying back. If you have no history of credit then a prime lender might take you on depending on the car, its future value, and what you are borrowing so if you place a large deposit say on a �5000 car and you deposit is say �2000 they might look at it favourably other than that jusy go for it you never know I have had customers of 17 and 18 years old get credit just a tip if you are looking to buy always go towards the end of the month because if the dealer is a few cars short of their target you tend to get a better deal also have a price in your head of what you want to spend per month and stick to it the average % flat rate we used to charge was between 5-8% so if it is any more be wary they might be having your trousers down a good place to get good cheap cars try www.arnoldclark.com

[spikeybob]

just to add to your question a personal loan and car finance are diffrent with car finance you tend to get a rebate on what you owe if you trade in

[Loosehead]

The difference is that the loan specifically for a car will be linked to that car so it shows up on and HPI check. There is also the fact that the car can be reposessed for non payment etc however that will not improve likleyhood of a loan being given based on credit rating. Even if they can reposess the car a lender will not want all the hassle so they would not knowingly lend to someone with a poor rating especially if that rating is due to defaulting. You rating can be low because it's non existant but usually it's because of defaulting onpayements fro previous credit agreements.