Car allowance with poor credit

Superseded · 9 August 2018 at 2:47PM

OK, so I've taken a new job, which comes with a pay rise (yay), and a healthy car allowance (yay). There's an option for a company car, but tax wise, I'd be significantly better off with the allowance (I emphasise significant).

I currently have a "poor" credit score according to Experian, but all payments etc from anything in the last 3 years have been on time, and the new job will help me eradicate old debt quite quickly I hope (3-6 months)

There are some rules to the allowance, but I don't have to spend it all, and I don't plan to so. Not only is the tax better, but the difference is mine to keep.

The rules are:
4 doors,
No more than 2-3 years old.
Has to be same class as a 3 series, audi A4 etc. (as long as it doesnt look like i'm spending as little as possible i think i'll be ok)

I feel like this will mean a lease, or contract hire, which I've never had before. I can't afford a deposit, but i believe I can go with 1 month deposit payment with most companies. monthly affordability will be easily covered by the allowance (including maintenance, insurance, car tax)

I'm looking for some direction as I'm nervous I wont find anyone to "borrow" from with my credit file. is anyone in the same situation? are there any options for someone like me?

MB85 · 14 September 2018 at 10:47AM

Hi, did you get anywhere with this? I'm in roughly the same boat having to give up my company car and receive a car allowance and pay rise. Got poor credit though! EEK!

Bigphil1474 · 14 September 2018 at 11:18AM

MB85 - depends what your company rules are. I work for local council and get a car allowance, but all they require is a car with an MOT. When I first started, I used to drive old bangers I got off my mechanic brother. I've gradually moved up in the world, but only to 3/4 year old cars (when bought) and drive them until they give up. If your company don't set any age requirements you could go down that line and it was more cost efficient for me.

MB85 · 14 September 2018 at 11:23AM

There aren't any rules as such but I am keen on a new car that is a PHEV so I can keep costs down. I go into london often so paying no congestion charge would be a huge plus, as would no road tax... don't want to take over this guy's thread- I've got one going too in the motoring section titled 'Poor credit car lease HELP!'