End of HP lease dilemma

DebtFreeWannabe88

Hi all,

in April next year I come to the end of a 4 year HP lease with alphabet car leasing , facilitated through select car leasing and due to a change in circumstances I’m at a complete crossroads as to what to do next

I’m now in a DMP and so my CF has took a hit and not where it was when I took the car out. I don’t think I’ll get another finance deal realistically plus I don’t have the likely £2k plus for a deposit on a new lease.

MSE loan calc has told me no lenders will touch me for a small loan to buy something - fine accept that’s the case - I don’t know where to turn.

never missed a payment on current lease which is £285 per month - ideally would like to reduce this cost but also happy for it to remain the same given circumstances. 

Does anyone have experience of a similar situation and any advice or recommendations of maybe other car finance companies who are good in these scenarios?

Given I want to slowly repair my CF I’m not prepared to now run a load of credit applications without some advice or knowledge…

Appreciate I may well be asking for a miracle but please be kind - only trying to do the best possible thing for the worse possible situation!

Car_54

DebtFreeWannabe88 said:

Hi all,

in April next year I come to the end of a 4 year HP lease with alphabet car leasing , facilitated through select car leasing and due to a change in circumstances I’m at a complete crossroads as to what to do next

I’m now in a DMP and so my CF has took a hit and not where it was when I took the car out. I don’t think I’ll get another finance deal realistically plus I don’t have the likely £2k plus for a deposit on a new lease.

MSE loan calc has told me no lenders will touch me for a small loan to buy something - fine accept that’s the case - I don’t know where to turn.

never missed a payment on current lease which is £285 per month - ideally would like to reduce this cost but also happy for it to remain the same given circumstances. 

Does anyone have experience of a similar situation and any advice or recommendations of maybe other car finance companies who are good in these scenarios?

Given I want to slowly repair my CF I’m not prepared to now run a load of credit applications without some advice or knowledge…

Appreciate I may well be asking for a miracle but please be kind - only trying to do the best possible thing for the worse possible situation!

What’s an HP lease? Do you just mean “lease”?

motorguy

If you're in a DMP surely one of the terms of that agreement is no new debt?

Herzlos

HP (hire purchase) normally means you own the car outright at the end, lease means you don't, so I'm confused.

If it's an HP loan, then the car is yours, job done. If it's a lease, then you can always speak to the lease company about extending the term, though I don't know if they'd need to do that as a new loan application

Car_54

Herzlos said:

HP (hire purchase) normally means you own the car outright at the end, lease means you don't, so I'm confused.

If it's an HP loan, then the car is yours, job done. If it's a lease, then you can always speak to the lease company about extending the term, though I don't know if they'd need to do that as a new loan application

A lease is not a loan.

Herzlos

Car_54 said:

Herzlos said:

HP (hire purchase) normally means you own the car outright at the end, lease means you don't, so I'm confused.

If it's an HP loan, then the car is yours, job done. If it's a lease, then you can always speak to the lease company about extending the term, though I don't know if they'd need to do that as a new loan application

A lease is not a loan.

Correct. So it's likely the HP is just confusing things here.

DebtFreeWannabe88

Sorry guys yes my fault it’s just a lease! I’ve spoke to SC and they’ve advised that if I need to take out new credit for a car for something already in my budget then it’s allowed as I need a vehicle so no drama there.

just spoke to my lease company - I can extend but they will need to provide a quotation and that can’t be done until there is 30 days left - I’m worried that sailing a little close to the wind!  They also advised they can sell the car to a family member and I can buy it back off them but the funding to do that is an issue.

does anyone have any experience of one of these “bad credit” lease companies? 

flashg67

A 'bad credit' company will cost you more - I'd stick with the lease extension option personally. Bear in mind the supply of new cars is hit and miss, applying now might give you an idea of likely acceptance.

*A lease may not technically be a loan but mine is shown on my credit file as having an outstanding balance and payment history recorded, as a loan would do