Cars on Finance/High Insurance for squaddies?

Discussion in 'Finance, Property, Law' started by bloodgroup_o+, Mar 6, 2008.

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  1. I'm wanting to buy a car so that I can see the girlfriend more at the weekend cause she is mega hot and above my average and I fancy hanging on to her for a few sprogs, but JPA is messing me around pay wise and I'm bein paid half what I should be so I'm finding it difficult to save up for a decent car as well as get the train from camp to hers. Also with the cost of my insurance bein over a grand a year (perhaps being a squady?) I dont know if it would be worth trying to get finance. I applied for a loan with abbey and was turned down so I'm guessing my credit rating is crap, probably due to me being late paying my credit card twice when I was on AT. Finding it hard to get decent advice from family/mates as it seems civvies dont understand some of the wee problems (proof of civvy address when I dont live there, payslips when JPA aint workin for me, not having the time to sort it all out) How can I get my rating back to good so that I wont mess up getting a mortgage etc? Any tips to get insurance cheaper? Finally, should I just get a second hand car rather than try and get finance if they would accept me for it? Soz for the long post but I'm bit out of my depth when it comes to money talk.
     
  2. Dont waste money on a flash car. Get something reliable.
     
  3. Some insurance companies will be harder on HMF, but you're more likely to be hit for being a young bloke.

    You are also more likely to be turned down for a personal loan than a hire purchase agreement as the loan is unsecured and may require a higher credit score. A fair few financial companies don't like doing car loans to HMF as they still seem to be under the impression that the motor will find it's way to Johnny Foreigner Land in the back of a passing Herc.

    Critical points are the address on your licence - if it's still at a parental address that's a big help as you'll be traceable there at some point (hopefully). If you're living in block you'll be virtually invisible or buried under years of other bloke's history.

    WRT to card payments, set up the DD to take the minimum amount so even if you are late paying it won't affect your credit rating. Late payments will show for 6 months minimum and are a big no-no if it's a regular occurrence.

    Depending on your circs, it may be better to get something older, not flash, but reliable (Jap stuff usually) for a while rather than get stitched into a loan that you may have problems keeping up with for a while if your pay has gone breasts upwards.

    (BTW I'm in the trade and regularly arrange finance (sometimes successfully!) for HMF - I'm not touting for business in any way but if you want lob a pm in my direction and if I can help I will)
     
  4. Do NOT buy a new car. Do not buy a fast car. Get a cheap shitty second hand banger with a tiny engine and insure it third party only until you are older and have some no claims bonus built up.

    To restore a decent credit rating, take out a very small loan and pay it off on the dot every month. And always pay off your credit cards in full every month.

    Use your parents address as your permanent address (unless they have crap credit ratings and live in a really shitty area).

    If the chick is marriage material she will stick with you car or otherwise. If she doesnt you are better off without her anyway.
     
    • Like Like x 1
  5. Cheers for the advice It's much appreciated. You can expect a pm shortly I imagine mate thanks for your help.
     
  6. Nae bother. And agree with DFS above as well, except Third Party is pretty much the same ££ as Full Comp these days i.e. a lot.
     
  7. ViroBono

    ViroBono LE Moderator

    One of the reasons credit can be hard to get is because companies use credit scoring and squaddies lose out because they often don't meet many of the high-score criteria.

    Getting on the electoral register is a major help, costs nothing and has the advantage that you can help to get rid of Gordon Broon at the next election. You can register at your Bks address, or at parents etc. Other things that help credit scores are contract mobiles and landline/broadband accounts.

    As far as our pay is concerned, get a complaint into your RAO. Tell him that the errors are causing you problems in getting finance - you may end up paying higher interest or not being able to get credit at all - and this is potentially actionable.

    When you do buy a car, remember that Payment Protection Insurance is optional; it can't be made a condition of getting a loan.

    Finally, avoid any 'guaranteed' finance deals, especially if they only apply to cars supplied by the finance company. Their interest is very high, and in the event of problems they will make you feel unWelcome...
     
  8. Organise a standing order for your credit card with your bank so you will at least make the basic payment on time.

    NEVER by a new car - get a car that has been used and regularly serviced. You can check the service manual - the best trick is to pull out the dipstick after having asked the dealer about servicing. Do this in front of him.

    Biggest tip - choose an area where there is high unemployment because they will be hungry for a deal. They all have targets to meet so work it against them.

    Back to the service scam - if the stick is black - forget it. Another tip, don't go for the asking price - start half way and let them come to meet you. Don't be shy on this because they all rely on a serious punter.

    Take your time on this - the girl may be gone in months - the car will be with you for as long as you owe the dough.
     
  9. Vans are cheaper to insure, the added bonus being you could get a mattress in the back...........

    Now where did i put the knife and tape? :evil:
     
  10. I assume that you are young, if so car insurance is always going to sting, squaddy or not until at least 21 and potentially 25. A Pass Plus course can save you money BUT check before you spend. £1000 for a low powered, low cost car is not unusual, so confine your purchases to slow, small and cheap cars. Buying something with no street cred is likely to save money for purchase price AND insurance so consider seriously Micras, Starlets, little Hondas and similar. Your 'Mates' will laugh at you, you need wheels not a pose machine.

    In some areas, vans are cheaper to insure than cars, they are often much cheaper to buy but check in the area first. (Around Middlesborough vans are normally more expensive to insure - too much TWOCing).
     
  11. Try insuring the motor at your barracks mine went down down 40% when i went from my parents manchester postcode to my barracks village in middle of no where postcode
     
  12. Or you could buy a small, and small engine new car. No MOT for a few years, it's under warrenty, and you can look after it from new.

    My first new car is still in the family. Bought brand new, and very little wrong with it. I sold it to my cousin for a fair price.

    Had it five years, never spent anything on it. Other than what it needed.

    Although it was tax free also.

    Vans aren't a bad idea for a singley, esp if you do a lot of courses. Or you're in to AT. Used to have a Rascal (sooty van), with a mattress and some cupboards bolted in. It was just the job for going canoeing in.

    For cheaper insurance try uping your voluntary excess, esp if you are a dab hand at car repair anyway. You could also try lowering your milage, esp if you are living on camp. Pass plus is worth it, if you are very young.

    Not too sure about getting a loan out just to get a credit rating, mind. If you are still paying out, get it on Direct debit, standing order etc. Set it up to pay out at about the 7th of the month. Then if JPA doesn't work right, you have a bit of time to sort it.

    Regards pay, pass it up the CoC, and get it sorted. They owe YOU money, and should be getting it sorted ASAP. Don't be afraid to take it up a level if the current level doesn't seem to be getting anywhere.
     
  13. ive got my eyes on a few saxo's VTR 1.6

    cheapest quote ive found is 850 a year fully comp

    im 23.. is that about average?
     
  14. sounds about right for a boy-racer type car.
     
  15. Get a VW camper, stick a surf board on top. Cheap insurance whilst still maintaining a (fairly) credible motor.

    Alternatively get a piece of shit and get these to square it away for you.

    Pimp My Ride