Car lease declined

[Deleted User]

Debts always come before savings

lopsyfa

CuriousUser wrote: »

A big chunk of that money from the car goes into savings for buying a house. Now the priority is to reduce my monthly cost and make it predictable with no surprises. Knowing that I am no responsible for the car (maintenance wise and losing value over time) and paying the same amount each month is giving me the advantage of knowing how much I will need to cover the cost for a month and put aside the rest into savings. Now the car I have now is out of warranty and requires servicing and consumables which can be extremely expensive.

But you will still be responsible for maintenance since you are buying a new car and also there will be depreciation on the new car but maybe not as much as on the car you are selling. Also, when you factor in dealer margin, a little loss to sell the car and interest on new car loan, there may not much gain in selling and buying a slightly cheaper car. Also, currently it seems you only have to pay minimum payment on your credit cards and this will be replaced by larger payment for the car loan.

Also, wont this new slightly cheaper car be out of warranty and also requires servicing and other consumables?

It will make more sense if you are buying a car that is a lot cheaper (for example less than £2000).

antrobus

CuriousUser wrote: »

...

I have been on the electoral vote since 2013 apart from half a year in 2016 according to the lender as they asked me why I was not registered (It might be the case that I was not on the open register if that's possible?....
.

CRAs buy the full electoral register.

scaredofdebt

CuriousUser wrote: »

Okay, it looks like you like having a rant before understanding the situation but I will explain.

They asked me for the last 3 payslips from work and proof of my income so £24,000 excluding bonuses is the income I am contracted for.
All my credit cards have around £11,000 available balance that's including the 33% used at the moment.

You earn £24k but have several cards with available balances of ~£11k? That's a bit of a worry for a potential lender as you could in theory max those cards out and owe more than your annual salary.

I would look to reduce those limits and/or close some of the accounts you don't need.

CuriousUser

!!! wrote: »

Debts always come before savings

Yes, that's why I will pay off the £2,600 credit card I have atm and keep the £1,600 paying in £100 a month as it's interest free for the whole period.

lopsyfa wrote: »

But you will still be responsible for maintenance since you are buying a new car and also there will be depreciation on the new car but maybe not as much as on the car you are selling. Also, when you factor in dealer margin, a little loss to sell the car and interest on new car loan, there may not much gain in selling and buying a slightly cheaper car. Also, currently it seems you only have to pay minimum payment on your credit cards and this will be replaced by larger payment for the car loan.

Also, wont this new slightly cheaper car be out of warranty and also requires servicing and other consumables? - The car I want for lease will not have any maintenance or consumables (maybe tyres but there is a slim chance), no cost for fuel either so it's going to be only the monthly cost for it.

It will make more sense if you are buying a car that is a lot cheaper (for example less than £2000).

scaredofdebt wrote: »

You earn £24k but have several cards with available balances of ~£11k? That's a bit of a worry for a potential lender as you could in theory max those cards out and owe more than your annual salary.

I would look to reduce those limits and/or close some of the accounts you don't need.

Reducing the credit limit will help me increase the score?

[Deleted User]

CuriousUser wrote: »

Reducing the credit limit will help me increase the score?

No. You don’t have a credit score.

And don’t reduce any limits as it can give the impression to lenders you cannot manage credit responsibly

Ben8282

CuriousUser wrote: »

Reducing the credit limit will help me increase the score?

No it will not.