The Gap Years - Car Leasing and Credit

theblueflash

It looks like I may be getting closer to being offered VR from my employer - which will give me hopefully enough to “bridge” the 18months till I am 55 and can access my pension. 

I’ve always leased cars - mostly through VW Financial Services or a leasing  broker for them like Stable Vehicle Leasing. 

These involve finance agreements/credit checks etc - how will they look at a situation where you have enough cash but not a job or regular income from a pension? Credit rating is super solid currently. Does anyone have any experience they can share on this ? 

Thank you ! 

sheslookinhot

Do you mean as of now, or in the future for your next lease ?  If it’s now, how would they even know ? Your insurance company might want to know.

theblueflash

sheslookinhot said:

Do you mean as of now, or in the future for your next lease ?  If it’s now, how would they even know ? Your insurance company might want to know.

For my next lease which will be due once I am “economically inactive” ? 

poseidon1

theblueflash said:

sheslookinhot said:

Do you mean as of now, or in the future for your next lease ?  If it’s now, how would they even know ? Your insurance company might want to know.

For my next lease which will be due once I am “economically inactive” ? 

Been economically inactive since 2015 and wholly reliant on investment income until 2024 when state pension kicked in.

Started leasing cars in 2019 and now into my 6th year  and third car, with my 2nd leasing company. Have had absolutely no problem whatsoever. A five star credit rating apparently ensures acceptance at the best rates, but i have noted even people with suboptimal credit can lease ( at a price).

moedeeb

Since I retired my credit rating has stayed in or  around the same score. I have only pension income and a few small interest free loans for sofa/ Thermomix/ boiler etc. I assume using a small amount of available borrowing keeps me on the radar.

theblueflash

Thinking more about those that have actual questions in application based on salary and employer - pretty sure VW Financial Services do  ? Anyone any experience of those ? 

Silvertabby

theblueflash said:

Thinking more about those that have actual questions in application based on salary and employer - pretty sure VW Financial Services do  ? Anyone any experience of those ? 

Both fully retired, both on State and other pensions, and due to pick up our new VW next week.

We initially didn't intend taking out PCP/VW finance, but were swung by the £1,600 VW contribution and have signed up for the 4 year PCP credit deal.  I know they ran a credit check on us, but neither of us were required to confirm our incomes or even complete an application form.  Just confirmed our status as retired.

P.S.  No, we are not going to pay 4 years of high interest.  We are going to pay off the balance within the 14 day cooling off period, but still get to keep the £1,600 VW contribution.  We asked the salesman how that could be possible, and he said that the losses incurred due to the tiny number who do what we are doing are more than covered by the interest paid by the majority.

ali_bear

That is the best way to pay if you are buying a new car 

michaels

I guess the OP is specifically talking about a period when they are living of capital/savings rather than having a regular pension income they can point to and how that might impact any credit applications.

theblueflash

michaels said:

I guess the OP is specifically talking about a period when they are living of capital/savings rather than having a regular pension income they can point to and how that might impact any credit applications.

Exactly this 👍

artyboy

It's something that has come up on here from time to time, including on the credit cards board - I'm not sure that the credit industry has really caught up with the fact that less and less people simply move from stable paid work income to stable DB pension or annuity income. 

I suspect right now I'm probably not the most attractive on paper (or indeed any other way) should I feel the need for credit - despite having some pretty substantial assets. And even when I eventually move into drawdown from my DC pensions, would that really get treated as income in the same way as an annuity payment, especially if the payments are variable/sporradic?