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    • MB85
    • By MB85 14th Sep 18, 10:18 AM
    • 8Posts
    • 0Thanks
    MB85
    Poor credit car lease HELP!
    • #1
    • 14th Sep 18, 10:18 AM
    Poor credit car lease HELP! 14th Sep 18 at 10:18 AM
    Morning all,

    This is my first post, so be gentle!

    I feel like I'm in a bit of a tricky situation and I'm hoping you can offer me some advice...

    The company I have worked for for the past 6 years was recently bought out and all the staff TUPE'd across. Things have been going well in the new place for the past couple of months however they have now said that they will be replacing our company cars (that were bought outright by the old company) and replacing them with a car allowance, which will begin November 1st.
    I have been looking around at my options and think the best thing to do would be to lease something. I am looking for a similar scenario as I had with my company car, with all things covered such as maintenance and insurance. I do a fair amount of miles so would need something new, and I travel into London frequently so something economical and ideally road tax/congestion charge exempt would be ideal.

    I came across the Kia Niro PHEV and have found some very good deals, well within budget. I have a charge point at home from a previous tenant so it seems perfect.

    The problem is I have poor credit.

    I had a couple of CCJ's more than 6 years ago that no longer show on my credit file, and currently have 2 defaults, 1 for 439 in 2015 and the other for 580 in 2014, both satisfied, with the latter being partially settled. Both of them show on my credit report as having default satisfaction dates in 2015. I am still in the 'poor' category on CreditExpert with a current score of 579.
    I currently have a Vanquis credit card that I took out in July 2017 and have been using it since around November 2017, and paying it off in full until May this year when the limit was upped from 250 to 500... I spent the additional 250 but have just been bringing the balance back to 250 since then. I'm on the electoral roll and all my information is correct with credit agencies.

    I have just had my salary increased to 47000 from 42000 and with the car allowance of 5000 that will give me 416 pre-tax to spend on a work car (got a deal of around 380 all in), so it's affordable, I'm just petrified of applying and being rejected, and harming my credit even further. I've made no credit applications since the Credit Card.

    I'd be keen to hear your thoughts! What would you do!?!
    Thanks!
Page 1
    • facade
    • By facade 14th Sep 18, 11:00 AM
    • 3,538 Posts
    • 1,857 Thanks
    facade
    • #2
    • 14th Sep 18, 11:00 AM
    • #2
    • 14th Sep 18, 11:00 AM
    Make sure that you are on a monthly lease.

    A traditional lease ties you into paying for the full term of the lease, should your employment circumstances change part way through you will be right in it.


    Does that change the deal you can get?


    Other than that, if you want a lease, you will have to apply and see what happens.
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science )
    • MB85
    • By MB85 14th Sep 18, 11:04 AM
    • 8 Posts
    • 0 Thanks
    MB85
    • #3
    • 14th Sep 18, 11:04 AM
    • #3
    • 14th Sep 18, 11:04 AM
    Thanks facade... I wasn't aware of a monthly lease... my job is pretty secure but I get where you're coming from.
    • Comms69
    • By Comms69 14th Sep 18, 1:46 PM
    • 5,492 Posts
    • 5,596 Thanks
    Comms69
    • #4
    • 14th Sep 18, 1:46 PM
    • #4
    • 14th Sep 18, 1:46 PM
    What about using the allowance to buy the company car?
    • CarolK
    • By CarolK 14th Sep 18, 2:23 PM
    • 23 Posts
    • 8 Thanks
    CarolK
    • #5
    • 14th Sep 18, 2:23 PM
    • #5
    • 14th Sep 18, 2:23 PM
    Biggest new and used car discounts (and finance providers) are currently autofindreplace who sell cars at trade prices


    This is quite a dynamic market so always compare with other sites
    • MB85
    • By MB85 14th Sep 18, 2:28 PM
    • 8 Posts
    • 0 Thanks
    MB85
    • #6
    • 14th Sep 18, 2:28 PM
    • #6
    • 14th Sep 18, 2:28 PM
    Comms69 Because the company car is getting older (2011 reg) and any repairs and insurance which will be needed will have to be provided by me.
    I would rather a new car that is someone else's problem if it goes wrong or needs some tyres, plus yearly MOT/Servicing. I just want to replicate the hassle free motoring deal I currently have with my company car.
    • CardinalWolsey
    • By CardinalWolsey 14th Sep 18, 3:41 PM
    • 312 Posts
    • 310 Thanks
    CardinalWolsey
    • #7
    • 14th Sep 18, 3:41 PM
    • #7
    • 14th Sep 18, 3:41 PM
    If you ignore the increase in salary, and consider only your car allowance, then according to MSE's Tax Calculator, 5000 will give you 242 per month after tax to spend on a car. Not knowing anything about you, let's peg insurance at 500 per year, plus a service at say 250, and two tyres for 150. Then tax at 140, so 1040 per annum, which is 87 per month. That will leave you with 155 per month to fund the actual car. You can add to that sum with your pay rise, but that is effectively what your car allowance is going to buy you.

    The Kia you mentioned works out - on a three year lease, 10k miles a year - at around 370/month (on a 36+3 basis).
    • MB85
    • By MB85 14th Sep 18, 3:51 PM
    • 8 Posts
    • 0 Thanks
    MB85
    • #8
    • 14th Sep 18, 3:51 PM
    • #8
    • 14th Sep 18, 3:51 PM
    Hi CardinalWolsey...

    Thanks, but I would rather take the 242 and pay some out of my own pocket to cover the additionals to carry on with a deal as I currently have it... the deal I have found on that particular car includes maintenance and insurance for the duration of the agreement, so the costs for a service, 2 tyres and tax are all built into the 380/month.

    My main concern isn't in which deal to go for but more of would I be accepted with my situation? As I'm trying to rebuild my profile I don't want to apply unless I'm semi-certain I'll be accepted. None of the eligibility checkers seem to include Personal Leasing so I'm not 100% certain of exactly the credentials for acceptance. If I'm going to be flat out refused there's no point harming my credit profile any further.
    • MB85
    • By MB85 24th Sep 18, 2:10 PM
    • 8 Posts
    • 0 Thanks
    MB85
    • #9
    • 24th Sep 18, 2:10 PM
    • #9
    • 24th Sep 18, 2:10 PM
    To add to this...

    I have found a Garage nearby that sorts their own finance and makes their own decisions on who they lease to based on personal situation so I may well be accepted- even if I'm not it won't harm my credit to ask. They would require just 1000 upfront rather than a % of the total or set amount of months payment. So with my allowance of 242, and adding the company car tax of about 120 I've been paying for the last 5 years (that I'm used to paying) gets me to roughly 360/month. Then all I would need to do is insure the car which is about 50/month. I'd say it's a pretty good deal. Especially as the car I'm looking at is a PHEV and I'd recoup a lot of the money I'd spend on fuel by driving on electric, which I would be able to do based on most of my normal journey lengths. I would claim mileage back from work on anything longer as it would be business miles.

    I can get a deal of Niro PHEV, 1000 deposit, 48 payments of 369 including maintenance.
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