Unstable address history & car finance

killersjess · 17 July 2017 at 2:24PM

Hello,

Bit of an uncommon one here as I can't find much online about it, sadly!

Firstly, I'm in a pickle as my old 52 plate Astra is about to pack in and I need it for my commute to work. I can't get Hire Purchase finance on a car because I have had more than 3 addresses in 3 years so they won't even look at me... apparently - even though my credit history, apart from this, is pretty good all-round.

I've considered my options - new credit card, loan, borrow off family etc., none of which are feasible for reasons such as ridiculous interest rates or probability of approval on certain things. This is all because of my poor/unstable address history. I have a credit card with around £1000 "spare" available to spend, but with a high rate on purchases, so I am avoiding this option at all costs. I also have no savings.

I have checked both my Experian and Equifax credit profiles within the past week. Experian has me down in the poor (almost average) section and Equifax has me in the OK/stable/on the right track section.

From what I can gather, again, this is all because I have moved house quite a bit over the past few years. I have had 4 addresses within the last 3 years, all down to circumstances.

Does anybody know whether there are any car leasing/finance companies who will consider me without offering a silly rate? Perhaps with a more bespoke underwriting process which takes individual circumstances into account? I worked in car finance (brokerage) for a short period, and know that I would have no joy with a Hire Purchase contract, but no idea whether leasing works differently?

Any guidance would be much appreciated :beer:

Thanks

[Deleted User] · 17 July 2017 at 2:29PM

Ignore the ratings Experian or Equifax give you. They're not lenders, and no one is interested in their opinions.

What do your credit files show? Missed payments, defaults, are you on the ER, total limits and balances etc, etc. Is your credit history good, poor or non existent?

The main issue you will have is affordability. If you have no savings now, how will you be able to finance a loan? Where will you free up the spare cash from to make the monthly payments?

killersjess · 17 July 2017 at 2:33PM

Thanks for your reply...

My credit file shows nothing adverse - stable long term relationships with bank account(s), a few settled credit cards with no missed payments, low credit utilisation on my current credit card. I have almost half my wage as disposable income so I don't need savings to fund the repayments - i.e. my affordability is good. I will simply be rejected (more than likely), due to the "poor" or "average" category in which I lie - just because I have moved house a lot, and because I am a private tenant, without a mortgage...

[Deleted User] · 17 July 2017 at 2:38PM

killersjess wrote: »

I will simply be rejected (more than likely), due to the "poor" or "average" category in which I lie.

Again - you will simply NOT be rejected for the category that the CRA has put you in.

No one sees it, no one cares about it, it has no meaning. Lenders will only look at the data on your files.

Where does all your disposable income currently go?

DCFC79 · 17 July 2017 at 3:11PM

You say you have no savings so where is your money that you dont spend ?

killersjess · 17 July 2017 at 3:55PM

I am aware that the lender only looks at the data on my files, not the "category" I am placed in - but the reason I am likely to be rejected is because I have not had a stable address for more than 18 months within the past 3 years, and whilst there is no adverse data on my file whatsoever, they are less likely to help me because of the address situation. I worked with car finance lenders for over a year and they told me themselves that I would/could not be underwritten for the same reason.

My point is that I have enough disposable income to comfortably make repayments of up to £180 per month, but I will not have the opportunity to do this if lenders base their decisions simply on the results of a computerised check on my credit profile.

When I say disposable income - that does not take into account my food and petrol... the rest (true disposable) gets spent (as you do) and/or goes in to an ISA for buying a house, ironically. Clearly I do not want to start dipping in to that as I am restricted as to how much I can put back in each month. Unfortunately I have no "rainy day" savings.

Ideally I would lease or purchase on a low(er) rate credit card.

I would be grateful to hear if anyone has had a similar experience and successfully leased/purchased (even if on credit) a new(ish) car.

[Deleted User] · 17 July 2017 at 4:27PM

Car finance is fairly easy in underwriting terms - as it's secured on an asset.

Are you on the ER? That is more important than changes of address.

killersjess · 17 July 2017 at 5:13PM

Yes I'm on the ER at my current address (since June 2016) but I wasn't at any of my previous addresses... this is likely to go against me, in traceability terms.

Mercdriver · 17 July 2017 at 5:57PM

killersjess wrote: »

Yes I'm on the ER at my current address (since June 2016) but I wasn't at any of my previous addresses... this is likely to go against me, in traceability terms.

Do you have anyone who could be a guarantor that does have a stable address history?

Unstable address history & car finance

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