Car Lease

bad_student

Hi All,

After a bit of knowledge from you all. Long story short but my credit history is bad. Went mental during uni and after and then spent yours denying it leading to 2 deafults on account. I am now completly out of debt so have been for a number of months.

However my car is about on it's last legs, and could with a new one. Are car lease only for good credit? Wasn't sure as obviously they can just take the car back if you don't pay, so doesnt seem much of a risk. Or is there anyway to get one with a guarantor?

Would be a useful option for me while i save up for my my own and hopefully would always help my credit score.

Thanks for any information.

DCFC79

Dont involve anyone as a guarantor.

Lease cars can be easier to get as the finance is secured on the vehicle.

Unfortunately its not the score lenders etc see, they see the history.

On its last legs, is that your definition ?

bad_student

Ye the history is the worrying part, i've been spotless for the last couple of years which is how i got myself out of debt. But them defaults are still on there, albeit they have been paid off.

Ye, not got long left in it, making some very odd noises. Only worth about £500-£600 wo not worth any big work.

bad_student

Ps. Whats wrong with a guarantor?

[Deleted User]

How much do you currently save each month?

[Deleted User]

bad_student wrote: »

Ps. Whats wrong with a guarantor?

Nothing, as long as you're not the poor sap who is the guarantor.

System

bad_student wrote: »

Ps. Whats wrong with a guarantor?

They're as liable for the loan as you are so if you don't pay then the lender will pursue them for the amount outstanding plus any costs.

Mobeer

bad_student wrote: »

Ps. Whats wrong with a guarantor?

You pay a high interest rate. If you make all repayments then you repay a large amount (high total amount repayable), If you fail to make repayments then first you incur fees, then the lender seeks repayment from the guarantor at that same high interest rate plus the fees.

As a alternative, the guarantor (lets say Dad) takes out a loan themselves at a much lower interest rate. They then lend money to you (lets say at the same rate as he borrowed at). If you make all repayments to Dad and Dad makes repayments to his lender, then you repay a much smaller amount and Dad breaks even. If you fail to make repayments to Dad then he still makes his repayments and ends up paying out less than if he was guarantor of a loan to you.

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In answer to the original question, there are car companies that lease or HP cars to bad-credit borrowers. They charge huge interest rates and I would suggest you steer well clear. I would keep your current car till it is broken beyond economical repair, then look at a cheap second hand model. While the current car lasts out you need to save up for when it dies.