New car PCP, bad credit

[skivy71]

Hi,

I'd like to purchase a new A45s on PCP, via MB... but pretty sure I'll get turned down.

Was discharged from Bankruptcy in June 2020, but been on £102k p.a. since June 2021.

Could put £10k down.

I've tried some 3rd party offerings who supposedly specialise in bad credit, but all they want to provide is 20% for the full purchase price.

Ideally, I want to do 24 months

 

[whitenemesis]

The phrase "to cut one's coat according to one's cloth " comes to mind ...

 

[Wearsthefoxhat]

Have you asked at Mercedes ??

 

[Red C220]

I was bankrupt many years ago having had a business go bust after my largest customer went bust and effectively took me down. I learned that day to never ever give a personal guarantee for anything to a bank for any reason whatsoever. It was a very expensive lesson.

The reality is forget anything approaching any normal form of lending for 6 years post discharge. It's just how the system works. It's the penalty you pay for being able to walk away from the debts.

You'll just need to buy outright or accept you're going to pay through the nose until you hit 6 years.

Once the bankruptcy is removed from your credit file and you're no longer obliged to declare it, your credit score will return to normal and life carries on again as if it never happened. It's effectively a 6 year suspended credit sentence.

 

[clk320x]

The phrase "to cut one's coat according to one's cloth " comes to mind ...

If he’s on £102k PA then surely the PCP payments on an A45s is well within his means now?

 

[DSM10000]

If he’s on £102k PA then surely the PCP payments on an A45s is well within his means now?

Possibly (depending on other commitments) but the algorithm that companies use to determine who gets credit, how much and at what rate will see the Bankruptcy as a red flag.

 

[Cmonyoureds]

If he’s on £102k PA then surely the PCP payments on an A45s is well within his means now?

Whilst the repayments may well be within his means, he would be paying way over the odds for the car due to a higher interest rate.

 

[BigJase88]

If your on 102k per annum why not just save and buy outright.

In the mean time buy an older a45 can get one for like 15-20k

 

[SmartAmg]

Welcome.

 

[Trickythemerc]

Smells a funny colour to me

 

[ALFAitalia]

I sell finance as part of my job.....anyone with a bankruptcy within the last six years would automatically be turned down....the rate would not come into it. There will be companies that will finance him.....but as said due to the perceived risk the rates will be high. He would get a better rate from his bank than any car finance house will give him.....some banks will even offer PCP schemes.

 

[Darrell]

Go and have a chat with Katie Price or Kerry Katona. They seem to be managing quite well.

 

[slade1]

Agree with whitenemesis. On £102K buy for cash ££££ cheaper car

 

[Jibbajabba]

If you want to keep the car after three years don't go with PCP .... And before you panic I'd check the credit rating myself first. If it is reasonable you can try to put a deposit down and use an unsecured loan instead. The issues you might be facing is the fact that bankruptcy won't leave the credit file for 6 years.

And don't make the mistake I made ... put a large deposit down for a PCP - I put £20k down for a PCP where the final payment after 3 years was still nearly 40k (e63S) and I knew that if I want to keep the vehicle, I am better off moving to a loan. Over the three years it saved me nearly 17k in interest .

So if you go for PCP and you want to get rid of the car after three years - keep your deposit down. You won't save a massive amount with huge deposits. The difference in monthly payments might not even be 100 quid ...

100% talk to the dealer and ask for multiple options as they always slap a piece of PCP in front of you and expect you to sign the first thing they offer - as that is the most commission they are getting.

Anyway - good luck - but bankruptcy may count against you. Especially if you earn six figures now. A bank could look at you and wondering why you had a bankruptcy whilst you earn 100k ... They don't know that you may not have earned that much during that time as they tend to ask for only three months worth of payslips ...

Do your research before 'going for it' as even the credit check will have a negative effect on your file so ensure you go through all options via soft check first .... Or even better - get a broker where you actually have someone to talk to and explain your situation.

 

[Jibbajabba]

Agree with whitenemesis. On £102K buy for cash ££££ cheaper car

Easy to say - a lot of times your lifestyle adjusts with the salary. Depending on your tax code - at 102k you go home with anything between 4k and 5k but if you ended up buying a house and pay 2.5k on your mortgage - you might not be better than someone with a 50k salary and 900 quid mortgage - cash wise anyway

Point is, as long as the bankruptcy is on the credit file - I'd stay away from any finance whatsoever .. otherwise you end up applying and applying, hitting your score even more so and you end up stuck in a vicious circle.