To get a car on finance

[Onlythehorses]

Is this based on credit rating rather than income ie can I still get it as a sahm

We gave details of our household income to ensure we could make the repayments. It didn't matter what we earned individually.

It will be based on income. I got a car loan, and they didn't take benefits into account either, it had to be earned income.

Would it need to be a joint application then?

When I got a car on PCP they didn't even ask my income. I do have a permanent full time job though.

Assuming that you live with a working partner, could they get the car in their name? I'm not sure if they do joint applications, depends on exactly what type of finance it is. Even if your partner gets the car, that doesn't stop you being the main driver.

They may have to register the car in their name and possibly take out the insurance, but it doesn't follow that it all has to be the same person to take out the finance, own the car, insure it or the main driver.

You'll have to ask the place where you are looking at cars. A couple buying a car for the SAHP to use won't be an unusual situation.

I got an Audi on PCP and the only relevant question asked was "Are you confident you can afford the repayments?" An Experian credit check was also carried out so I assume they answered the specific questions about my income from that.

Thanks. Will go and ask.

What is minimum deposit for car finance?

I wouldn't. You end up paying so much interest. I'd get a bank loan and pay outright for the car.

It depends starry. Mine is on 0% by which point I'll have saved the balance to pay it off.

I don't think we were even credit checked - it didn't show up on our credit file. We were asked our joint annual income and can we afford the re payments, but this isn't the first car we have had on pcp and it's always been with the same car just newer.

When this one ends we are going to pay the balloon payment and own the car.

Mine was also 0%. There was no saving for cash - if it was cheaper to pay cash, I would have done so.

In fact it was cheaper to get it on PCP as then they threw in free servicing which wasn't available if you didn't take the finance. Makes no sense but that's what the deal was.

Should add it's 0% and free servicing.

I did once but wouldn't again

What's the interest rate OP? Personally I wouldn't buy a car on finance - save until you can afford it.

Me and DH brought a car on finance before. We no longer have the car, as it started having problems a year after and they wouldn't touch it. DH is a qualified mechanic, and said for the problems it had it was cheaper to sell and buy a cheaper car. We are still paying it off through a consolidation loan (5 years later). I wish we'd just saved up to buy one out right, like we did with our current car. I wouldn't do a car finance again, and wouldn't recommend.

Answer to your question.. they take into account your income, not just your credit score, so yes it would need to be a joint application.

We've given up buying cars outright, the depreciation is too much if you like to drive a newish car. We get our cars on lease, pay a monthly fee for about 3-4 years and then choose a new car for the same fee. We worked out that this way we were spending way less than buying a secondhand car, keeping it for 4 -5 years and then selling it for next to nothing when it was starting to cost us money.

My hire purchase was based on credit rating only

I normally buy my cars outright and I was intending to do so with the one I've just bought. I was offered a discount of about 10%, but the dealer then said that if I bought it on finance there would be a contribution from the manufacturer and a further contribution from the dealer, making a total discount of 14%. So I bought it on finance and then paid off the finance a few days after taking delivery. I paid £4 interest for the short period the finance lasted, but for the discount I got that was insignificant!

Op - are you going to be doing some big mileage?
Any reason you need a new car and not something 5-7 yrs old?

Ive got one!

Neuteogena it isnt new