I can't afford a car then?

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I'm self employed, started my own business domestic cleaning 4 months ago. Has been doing really well, just gone up to 3 days a week.

My car is on its last legs, it has MOT due in March but it isn't worth saving as it's a 2006 model with a heap of problems.

I assumed I'd be able to get finance of some form but nope. Nowhere will accept me, being self employed without 6 months proof of earnings is working against me, plus I have bad credit from years ago.

This morning I decided to suck it up and ask my parents for a loan. They said no 🥴

Anyone been in a similar position? What did you do?
I'm worried that if I can't get a car sorted I won't be able to work and then I'll really be screwed.

you dont get financially linked unless its a joint loan you defaulted on

id try getting a car thro9ugh your dh

OP, given that cars are very expensive (either new or second hand), would it be worth applying for 'ordinary' jobs which are accessible on foot or by bike/public transport, and waiting until you're a bit more established and have a better financial track record before setting up your own business? There is no shortage of jobs at the moment, and you might be well advised to do something you're not that keen on, just for the time being, while you get some savings together.

Not sure if it is feasible but only a suggestion (sorry its already been suggested) but could you look into hiring a car for the days you need it for the business?

Have you tried directly with Arnold Clark or similar? They tend to be a bit more forgiving as the finance is secured against the actual car.

I bought and insured a car while learning and put my other half on the insurance. Word or warning though; I got insurance with a provisional licence for £500 (year) which seemed great, then when I told them I'd passed they wanted £720 EXTRA cos I'd only held a full driving licence for 1 day. I could have died and did not have a spare £700... in the end I cancelled, got a refund and went with LV who were quite reasonable at £900 ish total. So just bear in mind insurance costs! Oh also we part-exchanged my other half's old knackered car which he was gonna scrap for £300 and got £1500 off mine so don't scrap, try part-ex yours. My cheap car tip is if you can look at dealerships in nearby err 'less affluent' towns/cities, they'll be priced for the local market.

Could they get the finance in their name and you pay it off?

Have you tried a Credit Union?

Just fix your car for now . You need it for work

@Boysgrownbutstillathome You have to have saved with a credit union before you become eligible for a loan.

I think I read somewhere that they'll lend you double what you have saved. If that's true, could you use that to double the available funds?

I still think posting for free help on the Nextdoor app should be tried first. It could be something really simple for somebody with knowledge.

You've got absolutely nothing to lose.

I was in a similar situation, bought a mini for £2.5k with my savings and it’s done me ok til now….

It’s a banger, but it’s mine til I can do better…

Good luck and remember the rabbit and the tortoise. You can start small and go all the way if you want to!

This doesn’t really fall into an AINU category?!

OP, how much did (do) you and your DH pay for your phones? I know several people who can't afford something that costs 1K, but their phones cost way over that. Do you have phones that you could sell? All you need is something basic that enables you to call/text. My phone was a tenner and costs £3.50 per month for unlimited calls/texts.

PP have suggested car clubs, which aren't a bad idea. Taxis are also not as bad an idea as they sound, once you've factored in the additional costs of owning a car (petrol, MOT, tax, insurance, repairs on an ever-depreciating asset...).

have you tried "Pay as you go" car finance?

You buy a car and the finance company fit a black box that will automatically immobilise the car if you dont make the agreed payments. So you cant drive it until you make the payments.

And yes he can buy a car, who pays for it is irrelevant. As long as it is insured with you as the main driver and him as a named driver, you will be covered. Oh and the V5 in your name, it is about "main keeper" not owner.

My car is 2004. I’ve just had it MOTed cost 400 to get it right. Assume you’ve costed all the problems? Might it be much cheaper to just fix to MOT requirements? Then you’d have another year to evidence earning power. New car later? I’m in Ulez restricted area but my car somehow is compliant in spite of age so I just keep it going

I’d do the second. Unless you buy brand new any car can suddenly develop problems

So much redundant advice on this thread and practically all repetitive same ‘advice’. You also get posters putting the boot in telling the OP she is a bad debtor/take ironing in/leave her business and stack the supermarket at night; such dream killers.

I hope everything works out for you, OP. Actually, it will work out. Keep your business and the problems will iron themselves out.

Here are the cars on auto trader. www.autotrader.co.uk/car-search?advertising-location=at_cars&exclude-writeoff-categories=on&fuel-consumption=OVER_40&include-delivery-option=on&minimum-seats=4&page=1&postcode=B37%206AU&sort=price-asc

Once you've found a car, go back to DM and DD and ask for a specific amount of money £200, £500 etc and agree a payment plan so thry know they'll get it back. Good luck.

As a self employed person it passes me off that we're second class when it comes to credit - derr noones job is safe!
Anyways, glad your business is working for you, once your little one is in nursery/school, you'll be able to grow it. Also consider bringing on board your friends in similar situations and charging them out slightly more than their paid as you win more work. Passive income is very useful. You never know you could become a much bigger company quite quickly.

Thanks for (most of) the advice everyone.
I'm not going to jack my business in so I can go work at a corner shop or supermarket though. I have 11 clients that I've built up since August and I've just raised my prices from £15 an hour to £16.50. it's the best wage I've ever earnt. I have a 1 year old and a 4 year old and finding work to fit around school and (v expensive) childcare is impossible as it is.

It's not that I can't afford it or I don't have the money, it's that I can't get the credit.

I've spend all of yesterday ringing round garages getting advice. I think we're going to try a fix.

Worth having a look at what your council (Inc county council) offers. Around here you can borrow an electric cargo bike for a few months free of charge to see if it works your business which might help you for a little while.

I thought you can have 6000 before it counting. A secondhand car could cost less without it affecting income.

Being self employed you should be able to get a bursary through universal credit

But say it’s for equipment start up

Good luck getting it sorted OP, it sounds like getting it fixed is the best short term option.

Bad credit doesn't last forever and you can take steps now to make sure you're in a strong position if you do need to take finance in future.

Some tips
Save what you would on a car payment religiously each month, say £200, reference it on your bank statements, for example "car savings" and transfer it to a separate account. This gives you an idea of having the outgoing and you have a realistic idea of how comfortable you are with it. In 12 months time, you'd have £2400 to use as a deposit for car finance, which would strengthen your application as you're minimising risk to the finance company. Treat it as you would a car payment and do not miss a month or dip into it. If it feels like a stretch or you're regularly skipping months, reassess what you can afford and start again. Overcommitting yourself is the biggest downfall and you're better to make that mistake when it's only a practise run, than realising once you've committed to a finance agreement.

Get a copy of your credit report and check your recent credit - any missed payments in the last few months? Concentrate on getting any recent missed payments up to date first. How long ago was your last default? If any have outstanding balances, contact them and see if they will accept a partial settlement or payment plan, it doesn't hurt to ask them to remove them once settled. You'd be surprised how many do this.

Set everything up on direct debit and do not miss them, late payments and returned direct debits are a concern for lenders.

Make sure all of your self employed income is going into your bank account, have a separate account if needs be purely for business transactions. Self employment is a risk for a lender but well run statements and traceable income help a lot.

Please feel free to send a PM if you want some help unpicking your credit report. Good luck x

You call all the advice "redundant"...but all you said was "everything will work out great!!!". Ironic.

You've got a DH. Bin your banger and get him to finance the 2nd hand car and put you on the insurance. Otherwise why did you even marry him. That's the only logical solution.