Business car lease effect on personal credit file?

samson1313

I'm going for a mortgage in a few months but currently have about £6500 outstanding on credit cards(all balance transfered at 0%) i know all monthly outgoings etc are now taken into account when applying for a mortgage plus any debts so i was thinking I own a car outright that's worth aprox £6000 so was thinking about selling my car clearing the last of my debts and taking a business lease out on a car.

I'm a sole trader i've been trading over 10 years and have a decent turn over so getting a business lease shouldnt be a problem but i was wondering weather the monthly cost for the car (£200 - £250pm) would then show on my personal credit file or not (obviously if it does it kind of defeats the object of selling my car!)

Any help is much appreciated

SWB

I would have said a definite yes.
I am not sure any company would allow someone to drive a car away without credit scoring to prove they can afford the monthly payments? As a sole trader, it would be under your name, not a business name. Could you buy a new vehicle cash when you sell your car?

samson1313

SWB wrote: »

I would have said a definite yes.
I am not sure any company would allow someone to drive a car away without credit scoring to prove they can afford the monthly payments? As a sole trader, it would be under your name, not a business name. Could you buy a new vehicle cash when you sell your car?

Ok well i could buy a new car but what would be the point in selling the car i have cash and then buying a new car cash unless i'm missing something??

SWB

Sorry, I didnt explain that very well.
Sell your car for £6k. Buy a smaller/cheaper car for £1k. Pay off your CC and when you have your mortgage, review your options?

rhysadams

Yes it does unfortunately. Even if you are a limited company and are a guarantor for the lease, this can still show on your credit file. I found that out the hard way when I asked for my experian credit report.

bigjl

We had thought about leasing or buying on HP cars for staff.

After doing the sums we are just buying older well maintained but unfashionable cars instead.

As long as the vehicle is fit for purpose and well maintained it will do the job.

It also means we can pay the staff a little better which I personally think staff will prefer.

So I am with SWB sell your car, sort the debts then buy something for around the £1k mark.

It is surprising what you can get for under £1000

I am looking at two V70's next week, one diesel and one petrol. Both the ph1 shape with leather and Autobox.

One is £400 and the other £700.

The Berlingo has been fine apart from an oil leak which is getting looked at next week, hence looking for another load lugger.

Seems my suspicion of low mileage vehicles is well founded.

WhyNot?

This thread is over 6 months old, and the OP hasn't been back for 5 months...

:cool:

rhysadams appears to have bumped a lot of old threads on this board.
Only about 3 more weeks to go now folks!

rhysadams

Sorry WhyNot? my fault, I want to play a part in the forums so try and see if I can help every day.