Finance Finance and Credit!

[karobonas]

I'm thinking of buying a Civic Type R but I am worried that I will get refused for credit as my credit rating is poor! I wanted to find out if anyone else has purchased from Honda on fiance with a poor credit and if they have been accepted? I can definately afford one now but am suffering from bad descions in the past!

Any ideas?

Thanks!

[harleyfatboy]

Welcome man ...First off... This Planet spins on credit ...We have all made errors in the past.... but these dudes if you are lucky enough to get credit ....will make you pay for the privilage ...Hope it works for you ...ON A STEEL HORSE I RIDE

[Mr JP]

they will almost certainly lend to you mate, but maybe at a higher APR, where as banks will refuse you all together. Dealers always have 2 or 3 different lenders they go through, but remember to negotiate rates as much as you can, I was quoted 9.9% APR but managed to get 7.9% after nearly walking. The salesman will usually hand you over to a finance guy at the dealer who is FSA qualified to brief you on the products - just bear in mind he can pull some stings if he has to.

make sure you get the APR and not flat rate figure quoted to you, if your credit is that bad anything under 10% is a good start.

Hope this helps,

Hope your Type-R dreams come true!

[karobonas]

Guys you have been a great encouragment!! Do you think I should put a deposite down, do you think that will help my situation??? I've seen a nice silver ex demo with rage alloys GT model and ipod adapter, 200miles on the clock 57 plate for 16995. Up until now I have been driving a ford escort S reg..... not sure if I will get a great deal part ex.

[Mr JP]

Yes a bigger deposit will sweeten the underwriters usually. You shouldn't have any problems because the finance company take all the car details including reg no. and it's documented and appears on HPI checks etc, so this is sort of an insurance for them and thus lowers the risk, where as banks have little to go on so refuse point blank.

That sounds about right for ex demo, you can have mine for that if you like! see below for details

[karobonas]

Lol! can you offer me finance!! I would gladly take yours if you can... why are you getting rid of it?

Off topic, what does ex demo mean? do they usually use that car for test drives?

[Mr JP]

it's exactly that yes, some people would stay clear as people rag them but very few dealers let people out on their own in a type-r so a sensible salesman should have kept a lid on things (you hope). Excellent deals can be had on new ones though so it's up to you, I would push for the Honda Happiness servicing package to be thrown in to sweeten it for you perhaps!

Wish I could offer finance - shame - you would love mine! - check my photo album

[karobonas]

Really Nice car.... shame your getting rid of it! No doubt you have had many good journeys in it.

What does the Honda Happiness entitle me to? sorry to keep asking you questions, just want go in there prepared.

When I spoke with the Salesman first off I asked if I could test drive it and he said usually only once people are accepted to a deal he allow them, probably why there are only 200 miles on the clock. Definately going to look at a brand new one though.

Thanks again JP.

[Mr JP]

thats terrible, what a joke, as if someone is going to buy a car before trying. Talk like that from a salesman should be reported to Honda UK. Do not be intimidated. If I was you go on to Home - What Car? Helping you buy better and click on new car buying advice, there are lots of things to bear in mind.

Just remember after you have finished the test drive he is going to ask for all your details and try and get you to commit to a deal - first by saying "come in and sit down and have a coffee" is the usual ploy. It would be wise to not act too enthusiastic and perhaps say you want to try out the golf gti for example before making your mind up (just so he doesn't try the hard sale).

Remember dealers compete against each other so ring around and barter for the best price, playing them off one another.

and remember DO NOT be intimidated.

And for the record I'm not selling mine, what am I, some sort of plonker? lol

[karobonas]

lol, good man... To be honest, my first time buying from a dealer so going to need all the advise I can get. I won't be played for a mug so will give that link a good read.

Thanks for your help again. I will keep you "posted" on my deal.

[NEEMSTAR]

Originally Posted by karobonas

What does the Honda Happiness entitle me to?

welcome

Honda Happiness is 5 years worth of servicing for £500 as a one off payment.
Very good if you're planning on keeping the car. look here for more info ... Honda (UK) - Cars - Owner - Parts And Servicing - Fixed Priced Servicing

Good luck with your purchase

[Unknownsoldier]

You could try buying it on a credit card (any one), then changing (card-tarting) to something like AE that charges 0% APR on current balance, but massive charges on subsequent purchases, then cut up the card and pay it back monthly..... this way you would get a 0% APR finance deal.

I too would tell that salesman to go forth and multiply, I did say that to one near me who wouldn't let me test drive the R, too young apparently, like hell it is...... Try another dealer you may get a better response.

Tom

[NH Dan]

Originally Posted by Unknownsoldier

You could try buying it on a credit card (any one), then changing (card-tarting) to something like AE that charges 0% APR on current balance, but massive charges on subsequent purchases, then cut up the card and pay it back monthly..... this way you would get a 0% APR finance deal.

I too would tell that salesman to go forth and multiply, I did say that to one near me who wouldn't let me test drive the R, too young apparently, like hell it is...... Try another dealer you may get a better response.

Tom

just to clarify, i work at a dealership and cant let anyone under 25 drive the type r as our corporate insurance will not cover it. being based in south london no doubt. you should see just how much a blanket policy goes up when extend to the lower ages.

[NEEMSTAR]

Originally Posted by NH Dan

just to clarify, i work at a dealership and cant let anyone under 25 drive the type r as our corporate insurance will not cover it. being based in south london no doubt. you should see just how much a blanket policy goes up when extend to the lower ages.

what do you do when someone under 25 wants to test the car to buy ?

[NH Dan]

Originally Posted by NEEMSTAR

what do you do when someone under 25 wants to test the car to buy ?

tbh, not many under 25's in my area can either afford to or choose to but when they do, the best i can do is let a parent drive it or drive it with them. In 6 months, i've had one under 25 ask.

[NEEMSTAR]

Originally Posted by NH Dan

tbh, not many under 25's in my area can either afford to or choose to but when they do, the best i can do is let a parent drive it or drive it with them. In 6 months, i've had one under 25 ask.

ahh ok

[Mr JP]

Yeah heard that one too got told this when I tried testing leon cupra R because I was 20 (22 now), but once the guy knew I was serious magically his manager pulled some strings! My local Honda dealer didn't question me being 20 as I think they saw the Red H in my eyes!

So if Wayne Rooney or someone else with £20k in their hand walked in you would turn them away NH Dan?

...Na

The truth is I know dealers have to protect themselves but nowadays younger and younger people can afford more expensive cars and this needs to be considered too.

Tom, it sounds like he won't get credit cards easily, these being second only to mortgages in the pecking order for credit and the "score" required to get them - that's right loans are third! plus every credit app reduces your score thus his credit will get worse the more he applies for in a short space of time. Nice thought though - if only I had a £15k limit!

[NH Dan]

Originally Posted by Mr JP

Yeah heard that one too got told this when I tried testing leon cupra R because I was 20 (22 now), but once the guy knew I was serious magically his manager pulled some strings! My local Honda dealer didn't question me being 20 as I think they saw the Red H in my eyes!

So if Wayne Rooney or someone else with £20k in their hand walked in you would turn them away NH Dan?

...Na

The truth is I know dealers have to protect themselves but nowadays younger and younger people can afford more expensive cars and this needs to be considered too.

Tom, it sounds like he won't get credit cards easily, these being second only to mortgages in the pecking order for credit and the "score" required to get them - that's right loans are third! plus every credit app reduces your score thus his credit will get worse the more he applies for in a short space of time. Nice thought though - if only I had a £15k limit!

Damn right i would, especially as my dealership is smack bang next to a cop shop.

btw , did you buy the Cupra??

[Mr JP]

No I didn't because it didn't appeal as much as the "R", but there was definately a better chance of me buying the Leon than there would have been had I not been allowed a test drive

Unfortunately for the dealer it was the product that let them down, not their service or rules on test drive age restriction.

Therefore in the future I am more likely to return to buy rather than disregarding the dealer all together.

[karobonas]

Well. I am 23 (24 at time of purchase). I often get looked down on for my age when looking in dealerships at high performance cars as any young person would probably. As I say I can afford to pay the montly payments within reason but was concerned that if I apply for finance, the fact that it does leave a footprint on my credit file, if I get refused I will have to wait another 6 months before I can apply again.

Vicious circle really as I really want the car yesterday! but don't want to ruin my chances for getting it in the future if I do get refused if you get what I mean!

p.s. I've cut all my cards up and don't have any anymore... those things are the reason I am suffering today!! lol

NH Dan, Do you have any idea of the questions asked with the finance applications, i.e. what they take into consideration? Annual Salary, Living with parents etc....