I am Looking for Car Finance. Can I Use My Old Car as a Deposit?
Hi, 2 years ago i bought a car on finance (in my mums name) with CarFinance 247 (back then i think it was just called motor mart) because my credit history was not very good and i didn't pass the credit check that Andy Tam had done for me. Does he still work there? He was brilliant. Anyway he got the finance in my mothers name and i've been paying for that car without fail each month for about 21 months. I now require a bigger car and i'm looking at a car priced around £11,999 and there is still just over 3 years finance left on my current car. My credit score i checked on equifax today is 376. Will i be able to replace my car with a different one on finance and use the current car as a part exchange? However, there is still outstanding finance but i'm not in any arrears. Thanks
June 7, 2012
Hi Jenni, thank you for coming back to us again. Unfortunately Andy Tam left for pastures new about 12 months ago now but, yes he was a good guy. We'd love to be able to help you out but we may well need to place the finance in your Mum's name again as your credit score does seem very low. The issue being that when you place the finance in your mum's name it improves her credit rating and not yours when you make all the monthly payments on time. I'd advise to make an application in your name but with your mum as a joint hirer again and we'll try and get you approved on your own first. If we can't help you we'll be able to get your Mum approved again. We could also use your part ex as a deposit but it depends upon what the car is worth and how much outstanding finance there is. You may well find that what you owe is greater than the cars value. In that case you wouldn't have a deposit but we could still take the car in swap and settle the existing finance for you. You'd just have to come up with a cash deposit to cover the negative equity but then again you may well not be in negative equity :-) Please apply and i'll look out for the joint application. Regards, Rachel