Car Lease? - Help!

markbfw

I need some advice around trying to get a new car through contract lease etc.

I’ve had a look around today and there seems to be so many out there that im worried i pick a ‘bad’ apple....i guess i feel paranoid that companies out there will easily look to take advantage of people like me with credit issues.

My problem is that I’ve recently finished a trust deed (ended in June) but the discharge has not yet been updated on my credit report as my current Experian is classification is ‘poor’.

Ive been in touch with the administrator of my TD and any defaults on my credit report should eventually turn to ‘settled’, then eventually drop off after another 3 years.

Now, im trying to get a new car.

Ive always been in full time employment and fortunate enough to have a very good salary but next week, I start work as a contractor. I have a signed contract worth x3 as much as my salary but to do this, i need to be self-employed or classed as an employee of my own company.

So what is the best way to get a new car? I need one for my new business, do i try and apply for one now whilst still in full time employment but i have a poor credit history, do i try and get one through my business but i have no accounts? Or do I wait until I have 3 months under my belt?

I don’t know what the best thing is too do and would really appreciate some advice.

Thanks

forgotmyname

I think you need to phone a few and ask, But choose wisely if they do a credit check and fail
it may go against you. Too many credit checks doesnt look good.

There are companies that will lease to people with poor credit but prices are higher.

markbfw

forgotmyname wrote: »

I think you need to phone a few and ask, But choose wisely if they do a credit check and fail
it may go against you. Too many credit checks doesnt look good.

There are companies that will lease to people with poor credit but prices are higher.

Thanks for the info, i dont necessarly mind the higher price, its finding the right company who can a) get me a car and b) not rip me off.

Thanks again.

alx33277

So, you've finished a trust deed/IVA and you're credit rating is a bit battered. Here's my two pence..

1./ My first bit of advice would be not to buy a 'new' new car regardless of credit history.

2./ I'd also not look to lease if you're in a contractor scenario and look at a conditional sale type agreement instead. There are very few lenders out there who still do 'poor credit' contract hire anymore.

3./ Forget all the claims you'll see online about bad credit/guaranteed car finance from the million and one broking websites out there - if you're looking at sub £5k, go direct to either Advantage Finance or Marsh - anything more than £5k and you should use Moneybarn (who used to be Duncton).
4./ If you apply via your new company (with no trading history and no accounts) you'll almost certainly be asked to make a personal application instead. I'd recommend that you wait until you have at least 2 month's payslips (or equivalent) and then make a personal application based on your contractor income. Applying now as a FTE knowing you're changing jobs might be interpreted as fraud, although I'm not sure.

Hope that helps...

markbfw

alx33277 wrote: »

So, you've finished a trust deed/IVA and you're credit rating is a bit battered. Here's my two pence..

1./ My first bit of advice would be not to buy a 'new' new car regardless of credit history.

2./ I'd also not look to lease if you're in a contractor scenario and look at a conditional sale type agreement instead. There are very few lenders out there who still do 'poor credit' contract hire anymore.

3./ Forget all the claims you'll see online about bad credit/guaranteed car finance from the million and one broking websites out there - if you're looking at sub £5k, go direct to either or - anything more than £5k and you should use (who used to be Duncton).
4./ If you apply via your new company (with no trading history and no accounts) you'll almost certainly be asked to make a personal application instead. I'd recommend that you wait until you have at least 2 month's payslips (or equivalent) and then make a personal application based on your contractor income. Applying now as a FTE knowing you're changing jobs might be interpreted as fraud, although I'm not sure.

Hope that helps...

Yes, thank you so much for this, just what i needed...and yes last bit was a no, no...just wanted it confirmed

Thanks again.

vintagecat99

I wouldn't use MoneyBarn/Duncton if I were you, they ruin your life if ever you run into financial trouble. They are not a very sympathetic company if you fail to keep up with their agreement for whatever reason.

forgotmyname

Would you have used them in 2011 when the previous posts were made?

Are any companies your best friend when you take out a fixed term lease then want/need to cancel it?

I would have thought they were all the same. Its a 3 year lease so pay for 3 years. We dont care if you can afford it. Give us the car back and pay use for the 3 years lease you signed for?

No?

sixspeed_2

If its any help i know of one leasing company that can offer you a business scheme as a sole trader, however the credit decision would be based on your own personal credit score as a sole trader.

blt

markbfw wrote: »

Thanks for the info, i dont necessarly mind the higher price, its finding the right company who can a) get me a car and b) not rip me off.

Thanks again.

Hi, I'm not sure if this helps, but when you apply for a car through Lings (who I have used and been happy with), they ask you what your credit rating is like.

I asked one of their employees about it and they said that some finance companies will do a one year lease for people with some bad credit (it may cost a bit more). They also said that Toyota look more 'holistically' at a person's ability to pay.