Mercedes finance but bad credit before?

[mohammed786]

Hi,

Speaking on behalf of my dad. Basically hes interested in purchasing the new E class either the E220-E350 sport but he wants to finance it using the Mercedes Agility concept where you pay a deposit and then monthly instalments before a balloon payment.

However he does have bad credit in the past a few mortgage payments missed etc and this was primarily when we brought a property back home in pakistan and that had affected his cash flow.

We are a lot more comfortable now and in january we had cleared all payments etc that were outstanding like late bill payments etc. He can easily afford the finance example mercedes give for personal buyers which is around 6k deposit and £420ish monthly payments. Is there a chance he will be accepted for it? or if I applied (19 year old uni student) and he signed on as a guarantor? I am in the process of building my credit history aswell.

so my question is basically do mercedes give finance for people with bad credit at all?

Mo

 

[jibcl500]

You wont know until you try but my guess the computer will say no!

jib

 

[mohammed786]

hmm okay no worries thanks for the help. Im going to order his credit report this week see how it looks on that but now I think we'll just wait a few years

 

[Naraic]

Funny thing is, ordering a credit report will not make the situation better...but worse.

 

[mohammed786]

Funny thing is, ordering a credit report will not make the situation better...but worse.

I never knew ordering a credit report is a bad thing! is there anyway of knowing how your credit history looks?

 

[mikestrivens]

yes naraic is correct. The best way would be to order the report and then wait several months before applying. But if you have a dodgy credit record then it could years to clear.

 

[npuk]

Getting a copy of your credit file will not make it worse! It is a common misconception.

Get a copy and check it carefully, often there are mistakes which you get get rectified.

Here is a good guide to read: http://www.moneysavingexpert.com/loans/credit-rating-credit-score

From the above: "If possible, check all three agencies, as there's no harm. While doing a check is recorded on your file, it does NOT add a 'credit search' that a lender can see, so has no impact. "

 

[shine]

Can you not use your home as collateral for a personal loan to purchase the car.

 

[toby1]

Can you not use your home as collateral for a personal loan to purchase the car.

You jest I hope! Madness

 

[Steve@Avantgarde]

If you default a credit card once or twice then after 6 months all should be fine however if you default your mortgage payments then have an arrears for a few months this can take betweeen 18months and 2 years to drop off your credit report and have a massive negative effect.

Your credit score is based not only on your ability to pay credit back bur the amount you have borrowed in the past, currently have borrowed and what you are looking to borrow. Someone who has never borrowed in their life has the same credit score as someone who is heavily in debt and struggling to pay everything, so the chances of you getting it on behalf of your dad is also slim.

My advice would be now that he has got himself on an even keel is wait 6 months, save more of a deposit make the borrowing amount less and you will have a better chance of getting the car on finance.

 

[gizze]

Car finance is a funny thing, with enough deposit they will lend to anyone, if you default they will simply grab the car.

 

[mikestrivens]

I stand corrected, see this very useful website:

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

 

[jberks]

I suspect a lot depends on how much they want to sell you the car. Different firms have different rules and tolerances. I was turned down for a telly once despite never having missed a payment on anything. Yet the bank offered me a gold card a few weeks later. Theres no rhyme or reason to it.
If it were me, I'd go in and speak to the dealer finance guy. Mercs tend to be purchased by business people who have financial ups and downs so they may be more flexible than you imagine.

 

[MERCSPORT]

Hi,

Speaking on behalf of my dad. Basically hes interested in purchasing the new E class either the E220-E350 sport but he wants to finance it using the Mercedes Agility concept where you pay a deposit and then monthly instalments before a balloon payment.

However he does have bad credit in the past a few mortgage payments missed etc and this was primarily when we brought a property back home in pakistan and that had affected his cash flow.

We are a lot more comfortable now and in january we had cleared all payments etc that were outstanding like late bill payments etc. He can easily afford the finance example mercedes give for personal buyers which is around 6k deposit and £420ish monthly payments. Is there a chance he will be accepted for it? or if I applied (19 year old uni student) and he signed on as a guarantor? I am in the process of building my credit history aswell.

so my question is basically do mercedes give finance for people with bad credit at all?

Mo

My dad too has had similar problems for the same reason (re-building our home in Pakistan), but the advice I gave him.... Just buy what you yourself can afford... You can get decent Mercedes for around £1000 even!

But if you really are wanting to go ahead and buy one, then your best hope is just to ring whichever Mercedes dealer has the car, and see what they can do for you. No harm in trying, the worst they can say is no.

Good Luck
ZEE

 

[d215yq]

^^^^This

Isn't it just better to get a 2nd hand one for the £6k and be done with it, then its yours whatever happens to the housing market or abroad or wherever and no need to worry about losing your car if you can't get the balloon payment together...

saves a fortune in depreciation and finance charges too...

 

[MERCSPORT]

^^^^This

Isn't it just better to get a 2nd hand one for the £6k and be done with it, then its yours whatever happens to the housing market or abroad or wherever and no need to worry about losing your car if you can't get the balloon payment together...

saves a fortune in depreciation and finance charges too...

Too right, even though when my parents were getting ready to buy a nice less than a year old Mercedes, they waited and saved up their own hard earned money... Until then, we drove about in Mondeo's, Astra's and Passat's. Still though, those were good cars!

And it feels so good and better when you can say think to yourself that you bought that and you 100% own it. No contracts, no worries, I would never reccomend finance, or loans when buying something like a car.

Just buy a normal used Mercedes you can afford, if you are bothered about the reg, just put a private plate on it (you would be surprised how much people actually think they are worth!).

ZEE

 

[Steve@Avantgarde]

Problem is people are used to finance and credit now to show or maintain some kind of image or face rather than live inside of ones means and display what they can really afford. Which is one of the reasons why the world is in the financial mess it is in. Im not saying its a bad thing and if you want to and can afford it then fine but d215 and MERCSPORT has hit the nail on the head IMO.

 

[toby1]

+1

Always bought mine outright which always means a few years old. That's what I can afford.

 

[Steve@Avantgarde]

+1

Always bought mine outright which always means a few years old. That's what I can afford.

Samee here Toby which is why im in a '99 C250 W202!! Wouldnt swap her for the world!!!

 

[Rory]

I suspect a lot depends on how much they want to sell you the car. Different firms have different rules and tolerances. I was turned down for a telly once despite never having missed a payment on anything. Yet the bank offered me a gold card a few weeks later. Theres no rhyme or reason to it.

There's a discussion amongst car salesmen on PistonHeads that basically says people with the most horrific credit history are being accepted at the moment. (not MB specific, just generally)