Finance worries.

[Mr SFJ]

Hi Guys,

My car has served me well previously but is beginning to need serious work which I can no longer justify (having paid £1500, now needs around 2k of work)

I'm on a relatively good income, with average outgoings (around a third) and I would like to get a new car. Nothing expensive and extravagant, around £3300 on finance on a £4250 car.

The deposit is in exchange for mine with a little deposit from some savings I've accrued.

I've applied for finance with Sainsbury's who "Accepted in principle" but I'm now worried because I've put a deposit down on the car and I am now beginning to wonder if I'm going to get accepted, or reply with a decline.

I've spent about 6 months researching the car itself (Fiat Grande Punto T-Jet) and once I drove it, fell in love with it.

I've spent a couple of weeks investigating whether I can afford it or not and I can, and found that I can with money spare for servicing, insurance, MOT's Etc.

I do have around £1000 on a credit card (Worst mistake ever!) which I am currently clearing £150+ a month on to clear it asap, but I'm worrying due to having put the deposit on the car and potentially losing my deposit!

P.S - Be nice, I'm new

[dele]

I've never heard of someone being declined after having an agreement in principle

But I'll no doubt be proven wrong on this thread

[Jimmy No Hands]

dele said:

I've never heard of someone being declined after having an agreement in principle

But I'll no doubt be proven wrong on this thread

Agreed, unless you suddenly declare bankruptcy I think you'll be okay.

[Chris Type R]

£1k credit card debt isn't a great deal - and may improve your credit rating.

[Mr SFJ]

That's put me at ease somewhat I must admit. I certainly don't plan too declare bankruptcy! I do try v hard to live within my means so not buy stuff I can't afford/won't use and I have a pretty good, but not flawless CH I must admit.

ALS good I hope. I'll post with any updates I have!

Cheers guys!

[Fotic]

It's refreshing to hear someone have a little respect for debt and not just accept a large loan and Buy All.

However did it really take you several weeks to work out if you could afford a 3k loan on a 'relatively good income'?
Wait till you get a mortgage - you will die of worry!!

[Mr SFJ]

Being 20 as well with no uni less I'm not as bad off as people I know!

It took a couple of weeks as I got car finance quotes, and took a week or so comparing online bank loan quotes., and then milled it over thinking whether it was worth enrol long in debt for a car.

[Stevemr]

You should be fine.

You may have thought about it already, but if you havent, switch your credit card debt to an interest free balance transfer one.

Once its clear, use your card just for fuel and pay it off in full every month, that way with the loan you will build up a good credit history.

[Mr SFJ]

I must admit, I didn't really consider it. Might have too look into that, thanks!

[lukefreeman]

Agreement in principle means they've agreed, but they'll potentially jack up interest rate @ final agreement! They tried this with me, but just threaten to cancel all together and they soon back down.


Should get a £100 gift card in a few months too.