Car Lease / PCP type things

dogzilla_2

Hey,

I am 21 and my current car is coming up for 3 years in May. I very much want to sell this car by mid April as with a bet of warranty left i wont have much problem selling it.

So i am looking for my next car and i like the idea of a PCP/LEASE sort of deal, where i have a fixed cost per month and no commitment at the end of the period. I work in IT and i live at home with my parents. I have a good amount of free money every month and i can commit £400-700 for my total car ownership. (car, insurance, maintenance, etc..) I have found a deal for £300/month on a 2 year deal. The car value is £19,000.

The only problem is my credit rating isnt as good as it could be, for the past 14 months i have been very careful with finances and met all responsibilities, however i overlooked a mobile phone bill that went to 5 months overdue, it only ammounted to some £200 and soon as i realised i payed it off! Looking at my credit rating it seems to be the reason for my low score!

Anyway my parents would be willing to open the application however i'm kinda wondering if they will get it. They have two homes and two cars both on loans!

So how can i increase my changes? What if my dad opened it up with my mum and myself as a gurantor? Will my credit rating negatively affect an application if i am a gurantor or will it only add to it. (if only a little?)

I really just want some advice really on how i can get this sorted, like i said i have enough money each month for this, i'm well paid and have little expenditure. are there any lenders that look at more than just credit rating.

moneygum

Hey - have you seen a PCP deal you are interested in yet, if so have you been rejected credit?

I wouldn't worry about it until you have...

dogzilla_2

Yes i have found a deal i like. The finance is through Lombard.

Well i was speaking to a manager at my bank, she said my account had a very good standing and one of the better ones she has seen. (Actually last year i earned alot in bonuses)

However when i asked for a loan of just £5000 i was rejected! She was as shocked as i was, however the system said credit report and that means she couldnt help me!

dogzilla_2

So if i added myself as a guarantor to the pcp application, will it increase the chances or decrease it? I know my credit rating isnt that great but surely an additional guarantor helps the application?

JoeK_3

Move on and try again.

Each lender has different criteria and just because you have had a knock back dose'nt mean that you will fail again.

Why not put in two applications at the same time, one for you and one for your parents. Can't lose that way, can you.

JoeK

dogzilla_2

I really dont think i have a chance getting some £19k car PCP on my own.

So the choice is, do i just do it through my parents (and they dont mind) or should i add myself to the application. I would prefer that because it means i am involved and i can deal with the payments myself.

I just dont want it to be negative!