PCP and credit rating/history advice

BoGoF

ABAFT said:

BoGoF said:

ABAFT said:

CliveOfIndia said:

ABAFT said:

Nasqueron said:

The fake score can be ignored

Defaulted payments would be a red flag to some lenders, depending on age, some less so than others

With around £3.5k, how much are you saving, what is your savings pot and why do you need PCP on a brand new car rather than something like public transport to tide you over until you can get better rates?

I save approx £2000 per month. With some of it locked in ISA’s.

the default payments are 6 years old so will have to see how it goes but the journey to the new office is 150 miles there and back so ideally need a car. The train is 3 changes and a fortune.

we are fairly active in our lives and couldn’t live without a car

So how much have you got saved up so far?  £2000 a month must have built up (or very soon will) a pretty healthy nest egg.  I don't disagree at all that a "decent" car is highly desirable if you're regularly doing a 150-mile round trip.  But you don't need a brand-new car - with the savings you've built up, you ought to be able to afford a very decent used car.

And actually, that might be a better option for another reason as well.  I suspect you could well end up going above the annual mileage allowance for most common PCP agreements, or else having to pay more for a higher allowance.

Thanks but I’m not willing to use that money as we want to get on the property ladder asap and that is saving up for our mortgage deposit 

But you are willing to use the additional salary you get for a 'nice' car which is really a want rather than a need.

I don’t understand the problem with that though??? I’m not going to affect how much I can save or my lifestyle. I can afford it and work hard. It’s not like I’m trying to buy a Ferrari! Or trying to buy something I can not afford. 

Was only asking for advice around the feasibility of being accepted for PCP 

You may be offered an eye watering APR which on a 'nice' car could be thousands in interest.

Ultimately your choice what you spend your money on but excessive interest wouldn't be mine.

Nasqueron

Given you want a mortgage and aren't willing to sacrifice savings for a few months - and given that the PCP debt will affected your affordability and how much you can borrow, why not use a few months to buy a decent run-around for cash, use it for a couple of years to determine if you really want to be doing 150 miles a week commuting (assuming not 150 each visit to the office!) then decide in a year or two when settled about a fancy car?

MEM62

ABAFT said:

BoGoF said:

ABAFT said:

CliveOfIndia said:

ABAFT said:

Nasqueron said:

The fake score can be ignored

Defaulted payments would be a red flag to some lenders, depending on age, some less so than others

With around £3.5k, how much are you saving, what is your savings pot and why do you need PCP on a brand new car rather than something like public transport to tide you over until you can get better rates?

I save approx £2000 per month. With some of it locked in ISA’s.

the default payments are 6 years old so will have to see how it goes but the journey to the new office is 150 miles there and back so ideally need a car. The train is 3 changes and a fortune.

we are fairly active in our lives and couldn’t live without a car

So how much have you got saved up so far?  £2000 a month must have built up (or very soon will) a pretty healthy nest egg.  I don't disagree at all that a "decent" car is highly desirable if you're regularly doing a 150-mile round trip.  But you don't need a brand-new car - with the savings you've built up, you ought to be able to afford a very decent used car.

And actually, that might be a better option for another reason as well.  I suspect you could well end up going above the annual mileage allowance for most common PCP agreements, or else having to pay more for a higher allowance.

Thanks but I’m not willing to use that money as we want to get on the property ladder asap and that is saving up for our mortgage deposit 

But you are willing to use the additional salary you get for a 'nice' car which is really a want rather than a need.

I don’t understand the problem with that though??? I’m not going to affect how much I can save or my lifestyle. I can afford it and work hard. It’s not like I’m trying to buy a Ferrari! Or trying to buy something I can not afford. 

Was only asking for advice around the feasibility of being accepted for PCP 

That's just the issue.  You don' see it.  You will be borrowing money (and paying interest) to buy an asset with a value that falls like a stone.  What happens if the new job doesn't work out or you financial circumstances change for another reason?  If you want to borrow, borrow from your saving and pay that back with the extra money.  Having been through and IVA you should be aware of the risks associated with borrowing.