Leasing vs Hire Purchase

Sean8564

Hello all,

My situation at work changed recently, and I need a new car (apparently my 2003 Ford Focus isn't executive enough!). Anyway, I have a sizeable monthly car allowance, and am looking at leasing a car (low deposit, fixed monthly payments, hand car back at end of deal etc).

Anyway, my question is, how easy is it to get the finance for a lease? I'm young (24), not a home owner, and haven't got an extensive credit history. I have a small credit card, and one small loan, and have never missed a payment or have had a default. My experian credit rating is circa 780/999, I'm a relatively high earner.

Am I more likely to get finance for a lease or hire purchase?

Best regards,
Sean

smitchy73

I would imagine you'd get finance for your car no problem, if it's through a dealer then they'll have security of the car if you don't keep up payments. For more control and ownership of your car, perhaps a bank loan and you could speak to your own bank about it, but alot depends on what you do, how much you earn and the risk they will take. You should consider the running costs of the car, don't know where in the country you are but perhaps parking problems in the city, congestion charge, what types of road are you driving on, are you prone to bad weather(need a 4x4) etc etc, and most of all reliable and hold it's value well.

getmore4less

How many business miles are you doing?
Do you get fuel paid or business miles refunded

How many total miles?

Do you carry passengers or other stuff?

What are they saying about what will be suitable?

Consider what happens if you lose your job if taking on debt.


Look at the various leae option over a personal loan/purchase.

high mileage often makes the lease option worthwhile low personal finance/purchace