New resident, and new car

jmmo20

Hi,
I've been in the UK for a couple of years, so I'm still building my credit history (experia says it's average for now). I bought a used car a year ago and it's been quite a bad experience, this car is an absolute disaster not to mention it uses a LOT of petrol compared to our other car.

I currently earn 30k a year and the combined household income is +100k but we're still paying our martgage in Spain so we don't have a large amount of savings to allow me to buy a new car without spending all our savings.

I don't think I will manage to get a traditional car loan with the credit history I currently have. But I have looked into car leases. Ideally I'm thinking that a lease would allow me to get a decent car, sell this crap im currently driving and then in 2-3 years time when the lease is over we'll be in a better position to pay a decent deposit for a new car with a traditional car loan finance.

Question is.. are lease finance hard to get considering my lack of credit history?

Currently, I have 2 credit cards with £1800 combined limit, no missed payments, I'm on the electoral roll, etc. I also have a £999 interest-free loan from Barclays (I was surprised I was approved tbh..).

any tips would be appreciated. thanks.

rev_henry

No experience of it myself, but I would think credit requirements for a PCP lease would be similar to that of hire purchase.

missing_link_2

jmmo20 wrote: »

Question is.. are lease finance hard to get considering my lack of credit history?

With having achieved the above,I'd be surprised you'd be turned down. There again,it may go against you if you have existing credit payments. I thought experia work on points,to establish a persons good/bad credit history

jmmo20

missing_link wrote: »

With having achieved the above,I'd be surprised you'd be turned down. There again,it may go against you if you have existing credit payments. I thought experia work on points,to establish a persons good/bad credit history

do you mean having achieved the credit card and other credit?
I only have £200 left to repay from one credit card (which will go in full by direct debit next month) and about £800 left from a computer loan which will take 8 more months. Maybe then I'll have more chances.

experian give you a numeric rate then a classification. Mine is 750 which falls under "average". I was close to "good" before I got the computer loan so I guess its just a matter of time.

forgotmyname

Experian don't give loans though, So their numbers are useless.

Each lender will have their own criteria. If you dont fit you dont get.

You could earn £1,000,000 a week and still be a poor risk if you also have outgoings to match that or even exceed it.

Personally a lease looks expensive to me. What you spend on 1 year i can get 2 or 3 years motoring for the same price.