Wasn't expecting that outcome. Honda finance.

WillCheshire20

You see this is why i came on here for solid advice

Grumpy_chap

Well, £15k over 3 years at 9.9% is just under £500/month, which was the OP's budget.

The OP needs to take a cautious steps now.  Having been declined for one application, the last thing the OP wants is another declined application as that would then start to risk making the OP look desperate for credit and, in turn, either make credit harder to get or more expensive or both.

I don't know what the time scale is for a failed credit application to fade away in lender's considerations.  There may be others that can advise on that.  Possibly ask in the Credit File & Ratings forum or the Loans forum.

AdrianC

Grumpy_chap said:

Well, £15k over 3 years at 9.9% is just under £500/month

But if he's buying, he needs to finance £33k - £9k = £24k, not £15k...

WillCheshire20 said:

AdrianC said:
Umm, I may be making a leap of logic here... but will the car be remaining absolutely standard?

Not being used for business use at all, other than commuting and customer site visits?

Yes it would have upgrades, the upgrades it would have are mainly security based. It will be used as commuting, site visits, demonstration, advertising and promoting. However would be a personal car.

Personal PCP is the wrong way to do this.
The business needs to buy the car, you run it as a company car. Not lease, not PCP, because you're mod'ing it.

If it's ad and promo (wrapped?), you can bet there'll be photos on the web - if not, fire your marketing... You can bet financiers are checking plates for things like this.

Grumpy_chap

AdrianC said:

Grumpy_chap said:

Well, £15k over 3 years at 9.9% is just under £500/month

But if he's buying, he needs to finance £33k - £9k = £24k, not £15k...

Not if he goes for something other than brand new

Grumpy_chap said:

Type R's of the generation the OP wants seem to start at around mid-£20k's.  £15k finance might be easier to achieve.

£15k plus £9k = £24k, not too far off the type of vehicle (used) that the OP wants.

AdrianC said:

WillCheshire20 said:

Yes it would have upgrades, the upgrades it would have are mainly security based. It will be used as commuting, site visits, demonstration, advertising and promoting. However would be a personal car.

Personal PCP is the wrong way to do this.
The business needs to buy the car, you run it as a company car. Not lease, not PCP, because you're mod'ing it.

If it's ad and promo (wrapped?), you can bet there'll be photos on the web - if not, fire your marketing... You can bet financiers are checking plates for things like this.

I agree that PCP most certainly does not seem ideal in this scenario.
However, I can imagine the BIK on a car of this type will be significant if the car is taken as a company car.
Not sure what the tax issues would be if a personal car and then wrapped?  If simply claiming mileage it would be straightforward.
Of course, if the Ltd Company has retained funds, then that gives a route to finance that avoids lenders alltogether.

WillCheshire20

AdrianC said:

Grumpy_chap said:

Well, £15k over 3 years at 9.9% is just under £500/month

But if he's buying, he needs to finance £33k - £9k = £24k, not £15k...

WillCheshire20 said:

AdrianC said:
Umm, I may be making a leap of logic here... but will the car be remaining absolutely standard?

Not being used for business use at all, other than commuting and customer site visits?

Yes it would have upgrades, the upgrades it would have are mainly security based. It will be used as commuting, site visits, demonstration, advertising and promoting. However would be a personal car.

Personal PCP is the wrong way to do this.
The business needs to buy the car, you run it as a company car. Not lease, not PCP, because you're mod'ing it.

If it's ad and promo (wrapped?), you can bet there'll be photos on the web - if not, fire your marketing... You can bet financiers are checking plates for things like this.

It will not be wrapped, wont be going down that rabbit hole again, there will be videos and online promo etc obviously due to the products involved there will be no identification of the car.

Grumpy_chap said:

AdrianC said:

Grumpy_chap said:

Well, £15k over 3 years at 9.9% is just under £500/month

But if he's buying, he needs to finance £33k - £9k = £24k, not £15k...

Not if he goes for something other than brand new

Grumpy_chap said:

Type R's of the generation the OP wants seem to start at around mid-£20k's.  £15k finance might be easier to achieve.

£15k plus £9k = £24k, not too far off the type of vehicle (used) that the OP wants.

AdrianC said:

WillCheshire20 said:

Yes it would have upgrades, the upgrades it would have are mainly security based. It will be used as commuting, site visits, demonstration, advertising and promoting. However would be a personal car.

Personal PCP is the wrong way to do this.
The business needs to buy the car, you run it as a company car. Not lease, not PCP, because you're mod'ing it.

If it's ad and promo (wrapped?), you can bet there'll be photos on the web - if not, fire your marketing... You can bet financiers are checking plates for things like this.

I agree that PCP most certainly does not seem ideal in this scenario.
However, I can imagine the BIK on a car of this type will be significant if the car is taken as a company car.
Not sure what the tax issues would be if a personal car and then wrapped?  If simply claiming mileage it would be straightforward.
Of course, if the Ltd Company has retained funds, then that gives a route to finance that avoids lenders alltogether.

Our accountant has advised that the best way to do this is to do it personally and charge back to the company, mileage, day hire etc to avoid BIK which runs about £480 per month which is rediculous.

Grumpy_chap

OP - have you checked all your credit files for accuracy and ensure no errors that caused the original PCP rejection?

Does your Accountant have any advice about sources of funding or help with setting out affordability in a way that suits lenders?

WillCheshire20

Checked my credit file on both Experian and Equifax, both are clear although score is low, everything is accurate and up to date.

The accountant has obviously just said that i show my PAYE slips and expenditure etc.

Bluebell1000

Are you on the electoral roll? That can impact credit if you aren't registered.

Clive_Woody

WillCheshire20 said:

Checked my credit file on both Experian and Equifax, both are clear although score is low, everything is accurate and up to date.

The accountant has obviously just said that i show my PAYE slips and expenditure etc.

Your credit score is only seen by you and the companies who generate this number, but the fact that it is low is indicative of various things. From what you have said, perhaps the most obvious is that you have never used credit before therefore there is no history of you repaying (not as bad as missed payments), but when taking out finance at this level I suspect the lender would like to see something on your file that reassures them you can/will repay them and not default.

Simple things like getting a credit card and using it regularly (repay in full every month - set up a DD) will start to build your history. Getting mobile phone contract will do similar.