PCP/Lease question

Altior

rubble2 said:

Thanks for all the comments. I am not sure if I made myself clear but it as Matt_Drummer says, we will be paying 15k in total to fund the lease for 4 years. I understand that having 15k put aside in an account is no surety for the finance company as I could fritter it away on crack cocaine and wild wild women.

That is the reason that I suggested paying upfront for the whole lease cost - it seems to me to be virtually no risk to the supplying dealer/finance company. 

I've not heard of a leasing company that takes the whole payment upfront. Perhaps contact a PCH broker. 

These schemes are created for and operated on volume and turnover. A PCP is based on the expectation of purchasing the vehicle, so the finance quote will include the balloon payment, even though you're not planning to pay it.

We don't know obviously but you might be underestimating what your existing income can achieve. It's definitely worth contacting a good PCH provider and see what they think your circumstances can achieve, before applying formally. 

matt_drummer

With a PCP paying the biggest deposit they will allow will make the monthly payments the lowest they can be and should make the prospects of passing credit checks more likely as the monthly payments will be a lower proportion of your disposable income.

Cornucopia

Both the maximum downpayment and the maximum overpayment will be defined contractually.   You would need to look into the exact details, and a dealership offering multiple forms of credit should be able to compare and contrast for you.

However, they are not intended to offer full overpayment - the value of the finance product is in the interest payments and fees payable, and these depend on there being a debt.

"Retired" is a valid occupation for car finance applications, and it will come down to a credit check.