Advice on car leasing

Miss_Marple_2

Hello everyone - I am currently on a DMP with Payplan and have been for 3 years.

My problem is that my car needs replacing (it has done 300k miles and is over 16 years old). It is no longer worth repairing. As I do a 100 mile round trip to work every day, I don't think my couple of hundred pound savings is going to get me anything that will keep going for long on that mileage

I've checked with Payplan that they will let me take out more credit whilst in my DMP and they say OK as it is essential for work. I was also wondering about leasing (PCH).

Does anyone know what credit checks they do for leasing ? I've got one default from 3 years ago and a few 'red circles' and quite a high level of debt.

Can anyone recommend a leasing or finance company that is more sympathetic to those of us with a less than perfect credit history.

All advice gratefully received

RedDino308

Hi Miss Marple,

Sorry, I don't know much about companies who lease to individuals but maybe you could talk to work to see if they could lease one for you?

HTH

RD308

mummytofour

Whos is going to lease to you tho? You need a deposit and they credit check you.
Can you not focus for a couple of months and save some money up? You can get a fair amount for under 1k if you look hard enough.

skint_spice

I don't know about the credit checking but a lot of the companies put a milage limit of 10 - 12,000 miles per annum on them which would probably not be workable for you.

lizsara

I work for bank of scotland motor finance. We pretty much apply the same lending criteria to whatever product we offer, be it contract hire, personal loan, HP or Personal Contract Plan.

We do look at subprime customers. I suggest you get as much deposit together as possible but to be honest with the "credit crunch" being as it is, things have got a bit stricter.

With regards to the mileage limit mentioned above, this only applies to certain products - mainly those with a balloon payment on the end.

eg - we will garuntee the value of your vehicle at the end of your agreement by specifying how many miles it will have done. For every mile you go over the limit, an excess mileage charge is applied of 6p, 8p or 12p per mile depending on the engine size.

I would recommend you get as much deposit together as you can. If possibly get someone with a stronger credit profile to be a joint hirer on the agreement with you strengthen the deal. Please note however you MUST be named on the deal also if you are going to be driving the vehicle. If someone gets finance out in your name this is accomodation fraud.

Finally bank of scotland only supplys finance to what are "supporting dealers". We do not finance private sales. You can ask the car dealer further info about this sort of thing.


I would also seriously consider whether or not you would be better saving up and buying a car outright if your credit is poor. Hope this helps! x

sugarpants_2

I would try and save up too. Have a look on Autotrader.co.uk and do a search for cars valued 1k and under. Youll be surprised what you could get:j

lizsara wrote: »

I work for bank of scotland motor finance. We pretty much apply the same lending criteria to whatever product we offer, be it contract hire, personal loan, HP or Personal Contract Plan.

We do look at subprime customers. I suggest you get as much deposit together as possible but to be honest with the "credit crunch" being as it is, things have got a bit stricter.

With regards to the mileage limit mentioned above, this only applies to certain products - mainly those with a balloon payment on the end.

eg - we will garuntee the value of your vehicle at the end of your agreement by specifying how many miles it will have done. For every mile you go over the limit, an excess mileage charge is applied of 6p, 8p or 12p per mile depending on the engine size.

I would recommend you get as much deposit together as you can. If possibly get someone with a stronger credit profile to be a joint hirer on the agreement with you strengthen the deal. Please note however you MUST be named on the deal also if you are going to be driving the vehicle. If someone gets finance out in your name this is accomodation fraud.

Finally bank of scotland only supplys finance to what are "supporting dealers". We do not finance private sales. You can ask the car dealer further info about this sort of thing.


I would also seriously consider whether or not you would be better saving up and buying a car outright if your credit is poor. Hope this helps! x

Miss_Marple_2

Thanks for all the replies and advice - definitely food for thought.

Unfortunately I don't think saving up is an option as the car needs a significant amount of work very soon (more than the car is worth), so it's a choice of spending all my savings on repairing my car, which is likely to need more work even when the pressing stuff is done , or try & get something else.

I do have someone who will act as guarantor if necessary & I can make the monthly payments OK - I am in a DMP, but I am paying over the minimum payments to all creditors, and am paying interest with them again, so my creditors don't class me as being in an 'arrangement to pay' anymore.

The problem is just my fairly immediate need for a car and the fact that I'm sure no-one will lend me any money