Failed a credit check for personal car lease

Flicka80

Hi, My husband and I are 12 months into a (step change) debt management plan and our car has given up on us. We are a one car family and it turns out that It's going to cost over £1000 to repair our car which to be honest is more than the car is worth. We applied for credit to have a brand new car this weekend on a personal lease agreement. The monthly payments to have a brand new car we could have afforded because after consulting step change they said we're okay to reduce the payments on our debt management plan for something like a car which we need in order to work. The garage got back and said that we'd been declined, he said he'd 'try again' which I thought odd?? Anyway, he says that we've now been 'referred' which I don't understand what that means. I'm not hopeful that we will be accepted now as we've had one refusal. My father has said that he would consider doing the credit part for us, as long as we make payments to him each month. I've rung the garage to find out if this is possible to do but I've not been able to make contact. Does anyone here know if this is legally possible? My husband thinks it would be seen as fraudulent and the garage wouldn't allow it. Failing that, I'm insure about what we're going to do about a car.

tberry6686

You are in a debt management plan and are trying to get more credit ?

I suspect stepchange have said that they would allow you to reduce your payments to get a useable car not lease a brand new one. If they are willing to let you get credit for a new car then they are really unfit for purpose.

Try seeing what you can get in the bargain basement catagory ie sub £1000 before trying to get even deeper into debt may be a better option.

KatieDee

Flicka80 wrote: »

Hi, My husband and I are 12 months into a (step change) debt management plan and our car has given up on us. We are a one car family and it turns out that It's going to cost over £1000 to repair our car which to be honest is more than the car is worth. We applied for credit to have a brand new car this weekend on a personal lease agreement. The monthly payments to have a brand new car we could have afforded because after consulting step change they said we're okay to reduce the payments on our debt management plan for something like a car which we need in order to work. The garage got back and said that we'd been declined, he said he'd 'try again' which I thought odd?? Anyway, he says that we've now been 'referred' which I don't understand what that means. I'm not hopeful that we will be accepted now as we've had one refusal. My father has said that he would consider doing the credit part for us, as long as we make payments to him each month. I've rung the garage to find out if this is possible to do but I've not been able to make contact. Does anyone here know if this is legally possible? My husband thinks it would be seen as fraudulent and the garage wouldn't allow it. Failing that, I'm insure about what we're going to do about a car.

How much deposit was required on the personal lease? And if you don't mind me asking, what car was it? I believe some car manufacturers have higher criteria than others.

In my experience, car leasing does require quite a decent credit history but there are far too many factors involved to hazard a guess as to why you failed (although if you're in a debt management scheme, I'd guess it was to do with the level of debt you already have versus your income).

As for your father financing the car and allowing you to drive it - I'm not quite sure how this would work.

talktalktobt

You really shouldn't be trying to take out credit when on a debt management plan. It is very worrying IMO.

You can get a functioning, cheap used car for a couple of hundred pounds with an MOT. If it works for 6 month and gives up on you - fine... get another one.

If you can't afford it - don't buy it.

Flicka80

talktalktobt wrote: »

You really shouldn't be trying to take out credit when on a debt management plan. It is very worrying IMO.

You can get a functioning, cheap used car for a couple of hundred pounds with an MOT. If it works for 6 month and gives up on you - fine... get another one.

If you can't afford it - don't buy it.

Is there a website or a garage you can direct me to where they sell these cheap, functioning cars with MOT for £200 please?

Typhoon2000

Try Autotrader, there a some nice cars around the £500 mark with long MOTs. From traders as well so you have further protection.

forgotmyname

Ebay, Autotrader, Gumtree, Local shop windows, Supermarket advert boards.

Are you sure you cannot repair your current car for less than £1000?

When they say they will refer you, It's likely to be a sub prime lender who will want
silly interest rates.

Spend £1000 fixing your current car.

d123

Flicka80 wrote: »

Is there a website or a garage you can direct me to where they sell these cheap, functioning cars with MOT for £200 please?

Have you read through the threads on this forum? For example:

https://forums.moneysavingexpert.com/discussion/3803929

xHannahx

I used to have brand new cars on HP, typically around £200 pm. The last was written off and we owed more than it was worth, fortunately only about £100 but we'd been paying for 25 months.
We decided to buy a £500 car which lasted 6 months, so considerably cheaper than HP payments. Our current car was £1000 and we've had it 9 months trouble free so far again much cheaper than HP, and were £200 a month better off.
The best places I found for cheap cars with mot was facebook selling pages, as most classifieds/eBay charge so much people don't bother putting cheap cars on them

gilbert_and_sullivan

Classic case of cutting your cloth to suit your means.

Perfectly good cars for sale a plenty for well under £1000, avoid fashionable badges especially and you'll get a lot of car for your money.

Car ownership costs plummet when you learn how to fix and service the basics yourself.

Good point about FaceAche local sales, but Gumtree is always worth a poke nose too.