Is Car finance easier to get than a bank loan?

David H

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Sep 27, 2017
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Morning everyone,

Basically I have the smallest dent on the rear driver’s side wheel arch, but of course because it’s covered via insurance (other party involved admitted liability) they (the accessor) said it will probably be £2500+ repair because “it covers three panels” and also there’s courtesy car cost and all other associated costs that of course will cost a lot more than the car is worth in its present condition - so I think they could write the car off.

The car is of course not worth a lot, but it suits my needs and at the moment I’m quite happy with it because it was a cash purchase alas no monthly obligation for it; I would quite like a nicer car with a bit more power but this would mean HP, which I am more than happy to do. I won’t lease because my mileage is too high so it’s not economically worth it for me, but a HP on a nearly new - a couple of years old.

There is the option to accept the insurance money, and then buy the car back but then the car is Cat D (or similar) and it’s harder to insure and the car is effectively worthless - which isn’t the worst thing as the car runs fine and meets my needs so the value of the car would not bother me.

Whether I keep the car or get a newer car is entirely dependent on how much they offer me, as I know it won’t be a lot, but could be more than I am anticipating.

Anyway, that’s the context - haha.

I have quite a bit of 0% plastic debt that’s very manageable that’s I am paying off to the point that it will be gone by the time the 0% period runs out.

Though, I do have a very good credit score, but my employed job is only part time and therefore my per annum salary is not that high.

I do sometimes get offers from banks like TSB that offer 2.9% APR so I normally gauge this as I would probably get it if I applied, though, whether I would get the amount I actually want is another question. Though, this is fundamentally unsecured and so my chances of getting it are harder, whereas with a car loan (from a dealer) the loan is secured to the car, so surely my chances of getting that would be far higher than the unsecured bank loan?

This is all really food for thought at the moment as I am yet to hear back from the repairers/insurance company, but I would really appreciate any thoughts and advice! :)

Thank you!
 

Jon

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I would say you need to hang fire at the moment to see how much they offer you for your current car or if it's written off..
 

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