Car leasing with poor credit

Legacy_user

I've been offered a job with a car allowance of £4k which I was a little disappointed with as I'd have rathered a company car instead but they don't offer that option unfortunately.

I have poor credit so I don't know what's the best thing to do with the allowance - buying or leasing? I have a few friends who lease and get a new car every 2/3 years and have maintenance included so it seems like a good idea. But I don't know if anybody would deal with me having poor credit.

What are my options? Hope I've placed this post in the right section, sorry if not. Thanks

[Deleted User]

Buy a car for 4k or less.

Preferably less.

System

The money is paid monthly, not a lump sum.

Cornucopia

MissSJL wrote: »

I have poor credit so I don't know what's the best thing to do with the allowance - buying or leasing? I have a few friends who lease and get a new car every 2/3 years and have maintenance included so it seems like a good idea. But I don't know if anybody would deal with me having poor credit.

Car Finance tends to be more accommodating to poor credit than other forms of lending - this is because the loan is secured on the vehicle.

Is the allowance a perk, or are you expected to provide a car for work?

System

No I need a car for my work as I have to travel around my city. My worry with car finance is won't I be left with a car stuck with high mileage at the end of the finance? Or should I not worry about as technically I've not paid for it?

Cornucopia

If you have a rough idea of the mileage you will be doing, then get a Lease or PCP. Your £4k allowance will be worth around £250 after tax, per month, which will get you a Lease plus Insurance on a reasonable new car. (A Petrol Ford Focus will start from c. £190pm, for example). Alternatively, small cars can be in the £100pm area (e.g. Toyota Aygo £115pm). That would give you more of your allowance to spare whilst you get used to your figures/usage.

If you don't know the mileage, you may be better getting straight finance that will end with you owning the car outright.

System

Cornucopia wrote: »

If you have a rough idea of the mileage you will be doing, then get a Lease or PCP. Your £4k allowance will be worth around £250 after tax, per month, which will get you a Lease plus Insurance on a reasonable new car. (A Petrol Ford Focus will start from c. £190pm, for example). Alternatively, small cars can be in the £100pm area (e.g. Toyota Aygo £115pm). That would give you more of your allowance to spare whilst you get used to your figures/usage.

If you don't know the mileage, you may be better getting straight finance that will end with you owning the car outright.

Yes a lease is my preferred option tbh. But would a leasing company deal with me with poor credit?

Cornucopia

MissSJL wrote: »

Yes a lease is my preferred option tbh. But would a leasing company deal with me with poor credit?

I imagine so. There's only one way to find out.

Many main dealers now do Leases and the similar Personal Contract Hire, so might be a good place to start in trying to assess your suitability. If not, there are companies that specialise in poor credit cases, though they may be more expensive.

System

Thank you. I'm fretting about telling my new employer that I can't get hold of a car on my own. Would rather keep that to myself if possible.

Cornucopia

https://www.contracthireandleasing.com/car-leasing-news/top-five-cars-you-can-lease-for-under-100-a-month/

leespot

Don't forget that you may need a fairly large deposit depending on the deal.