Great advice, Dreamer. Nothing for me to add, really!!

Cat

Detapho,

Car loans are regulated by the consumer credit act which does give you more rights, generally car loans are easier to obtain, also dealers will have a panel of lenders, if you were declined by one then another might take you on. Whoever you apply with will leave a foot print on your file be you accepted or declined

Personal loans will take into account you existing liabilities, car loans don't!!!!!!!! yes the APR might be a bit higher but in reality £2 or £3 a month over a 3 year loan is not a huge issue. and then when you have the options of PCP as well which of course banks and personal loans don't offer it can make the car even more affordable!!!!!!

as opposed to a lot of peoples thinking borrowing money through the dealership may enable you to geta better deal on the car, cash is NOT king in a car delaership!!!

where the agreements are regulated you have rights that personal loans do not give you, if you have paid 1/2 you can hand the car back to the finance company (an advatage if you fund over 60 months with a small deposit as the car may be worth less than your settlement if you wanted to change the car early) and if you have paid 1/3 rd the finance company would have to get a court order to reposses.

if it were me i would fund through the dealer and negotiate not just teh car but the finance!!!

real facts from someone in the trade

good luck

Car Loans are easier to obtain, this is because of pricing for risk in certain deals, mainly though because most agreements have the loan secured against the car meaning that if you dont pay the car could be repossesed although this is extreme, you do also have extra benefits from borrowing through a dealer. Generally the agreement is regulated by the consumer credit act meaning you have early termination and repossestion rights, The rights under the consumer credit act YOU DO NOT GET WITH A PERSONAL LOAN. Another consideration is that a personal loan will take into account your outstanding credit liability and the fact that you have paid a few direct debits late, a car loan WILL PROBABLY NOT LOOK AT YOUR OUTSTANDING LIABILITY but could look at your late payments

Car loans (or more specifically loans sold in conjunction with a car sale) are typically easier to get since they are offered with 'pricing for risk' - that is, the more problems there are in your credit history, the more expensive the loan is. They rarely offer compatitive rates because the credit is sold in a car sale room where they've got you as a captive audience.

Your credit history doesn't look too bad so if you can show you have spare money each month to more than afford the loan repayments, I would think you would be ok with going for a normal lender. Alliance and Leicester's moneyback bank offer pricing for risk starting with a market leading rate for clean records. This way you 'should' get approval without problems and definitely look for something under 10%!.

any help?

Hi,

I am currently in need of buying a car due to work commitments. My concerns are I have recently(Last September) had a personal loan refused by Northern Rock.

Likely due to me not being able to pay direct debits at the first atttempt although they were always collected successfully 2 weeks later.

I also have 2 credit cards which appear as follows;
1.Balance:£2900 Limit £3000
2.Balance:£2100 Limit £2400

I am planning on paying these off over 2007 by paying approx £50 each/week.

I also have a shared mortgage, and havent missed any direct debit since September 2006.

Recently checked my credit rating with experian which is 893. Which I think is reasonable?

My query now is if I have been refused a personal loan last september what are my chances of receving a car loan to the value of £5000. Would I be correct in thinking that if I did buy through a dealership such as car giant whom black horse offer financing through, would it be easier to obtain rather than a personal loan?
I am also concerned that if I do apply for finance via this method would this affect my credit rating if refused?
Should I wait another couple of months to ensure i get a better deal.
Just to add if I do and successfully receive finance I would be accepting on if the apr is acceptible possibly 10.0% or less. Would this be acceptable giving my current credit rating?

Thanks in advance for your advice,

Regards,
Detapho.