Perfect finances but cannot get a car loan!

nm1213

Hello,

I am currently 1yr 6 months into a 5 year work permit, and have been at my current address for just as long.

I've also had my bank account for this long, and have managed to get 2 credit cards, one with Barclays and the other with Lloyds. These are in their 4th month of operation and have seen roughly £5000 of traffic through them. I have not carried any balances and have paid them on time. Also, my bank account does not have any black marks on it at all.

In addition, I have 2 phone contracts, spanning the entire period with zero late payments, etc.

Basically, my credit history is as spotless as it can get given the time I've been in the country. I am not on the electorial roll, but I have a note with the credit agencies explaining I am not eligible.

Lastly, I am employed full time, with the same company for 3 years (initial employment was in a different country and I've since transferred to the UK while maintaining a continuous record of employment). Monthly income is a steady £3000, and I have no other debts what so ever.

Now for the fun part. I'm dabbling in the idea of getting a car on a lease for 2-3 years. My bank has an affiliation with a car selling company and also offers financing/leasing. I called their number up and stated I was on a work permit, and have been in the country for 18 months, and would like to lease one of the cars they were offering... appox £260/mth for 3 years.

They stated I had to be in the country for at least 3 years, and they would not consider me otherwise.

This is quite unreasonable. My credit card companies initially said the same thing, but I visited them in person and brought along copies of my rental agreement, paystubs, record of employment, utility bills, and credit report. They agreed to waive the 3 year rule and issue me the credit cards.

Given my earlier success with getting credit, is there any chance for me to get a lease on a car? I mean, what is the worst that could happen... they would still have the car to take back! I see people who were born here, and in ridiculous amounts of debt, yet I run my accounts flawlessly for 18 months and am penalized.

I can dip into savings and buy a car outright, but I don't like the idea of buying a new car outright... nor do I like the idea of having to buy a used car and deal with any maintenance issues. I just want something I can drive for 3 years, and then return... zero hassle... and then get something new.

Any advice is much appreciated.

jonesMUFCforever

Are you a uk resident?

nm1213

Yes. I have a valid visa and work permit for 5 years, after which I fully intend to become a permanent resident and eventually a citizen.

Gemmadm

Hi have you tried any other companies for a loan or just the one. Others may have different criteria for lending. I had one company saying I could lend £10,000 and another saying I didn't earn enough for anything.
Gemxx

jonesMUFCforever

I asked if you were a UK resident and you replied that you had a valid visa and work permit which suggests that you are not.
A lot of banks wil not lend to you until you have been in UK for 2 to 3 years.

ITConsultant

Dont buy a new car then...

New cars loose 15% (well 14.9%...) as soon as you take them off the forecourt (reverse VAT calculation... VAT included in a £10k car is £1490 approx...)

Depending on how much you want to spend there are some great 2nd hand deals out there.

As my old gran gran used to say "Theres more than one way to skin an egg"...

jonesMUFCforever

ITConsultant - I don't think OP wants to buy a car merely lease one.

doitmyself

I'm sure the OTT sensitivities of the forum mods will soon see this post deleted but you have to laugh, not only for the message but for the fact the poster is so pleased with himself he's actually given himself a standing ovation! . Anyway, welcome to the UK OP.

With regards to the subject matter maybe buying a car is the best solution currently, I don't know and don't have anything else to offer, but certainly the question was set out clearly and comprehensivlely from someone who whatever their nationality and whether English-speaking or not has perfect vocabulary, who is clearly intelligent and who seemingly has a very good job, certainly a well paid one and who no doubt contributes something very worthwhile to their employer as well as to the country in general (taxes at the very least).

Maybe we could do a swap? What's the chances of us sending Bradrock to the OP's own country I wonder...

chani1

you have to have at least 3 years worth of addresses to be even considered for an unsecured personal loan.

nm1213

To set the record straight, I've moved here from Canada for work reasons. Being on a workpermit means I am bound to my employer, and cannot switch jobs. If I lose my job and am unable to find a new sponsor, I have to go back to Canada.

Also, I have no access to public funds, which means that I still have to pay taxes, National Insurance and so on, yet I cannot claim anything back.

Lastly, in order to get a work permit, I have to show proficiency in my job, and the company sponsoring me has to prove they were unable to fill my position with local talent. The company also has to show how I am the most qualified candidate of all others interviewed.

All of the above actually makes it a hell of a lot more difficult to enter the UK to work, live, etc than simply being born here due to some luck. I just wish people who take things for granted here would realize this before commenting on things they have no reason to.

Now when it comes to financial matters, I need to prove that I have enough funds in my bank account and must also meet a minimum salary threshold. You would think that this alone would allow me to qualify for loans and credit, more so than a person born here who is on a low wage, and is irresponsible with their finances.

Lastly, we should have a forum or sticky threads here outlining tips for newcomers to the UK on how they can go about using various financial instruments properly upon their arrival.

N.

jonesMUFCforever

''To set the record straight, I've moved here from Canada for work reasons. Being on a workpermit means I am bound to my employer, and cannot switch jobs. If I lose my job and am unable to find a new sponsor, I have to go back to Canada''.

That was quoted from NM1213 's last posting and has hit the nail on the head!!!
Nobody forces you to work for anyone, slavery was abolished two hundred years ago today and if you wanted to you could abscond tomorrow, go back to Canada and leave the debt behind.
Since it will be much more difficult and costly for the finance company to track you down and get the money from you,

That is the reason you are finding it difficult to get credit over here.

Have you ever thought of doing it the other way round though (you would have to buy a car not lease it)? Get a loan from your Canadian bank send it here in sterling and away you go.