Poor credit rating and car leasing. Any advice please?

20
Found 15th Sep 2015
Hi all,

Well after spending 2 months deciding on a car to lease, first time leasing, turns out my credit rating is very poor, and I've been declined PCH direct with a car manufacturer. It's due to one outstanding debt with my name on it (which unfortunately is out of my control as I am no longer part of this but cannot remove my name).

I've been advised that they can try a different lender on PCP instead, but the payments will be sky high, over £100 more at least per month. It's too much. The car itself is an average priced car, and I need a car that has enough power to drive regularly on the motorways for work and social use, but also economical of course. So accepting a cheaper car such as an Aygo or something similar just wouldnt suffice.

Has anyone else been in the same situation and/or can anyone offer me any advice? I understand there are companies online that deal with bad credit but it seems they charge a lot more per month and ask you to hire for about 5 years! That's far too long to commit.

Be great to hear any advice, thank you!
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20 Comments
Glad you raised this...my credit rating isn't exactly brilliant either and I was looking to do this same thing, perhaps next year - so I'll be interested to see if/what options there are out there.
Try getting a loan from your bank it's cheaper
Have you checked with a company like Equifax to find out why your credit score is so low ? Best option for credit scores is to do simples things like register to vote in the property you're staying and do your weekly shopping on credit card and then pay them off at the end of the month.
Edited by: "kester76" 15th Sep 2015
kester76

Have you checked with a company like Equifax to find out why your credit … Have you checked with a company like Equifax to find out why your credit score is so low ? Best option for credit scores is to do simples things like register to vote in the property you're staying and do your weekly shopping on credit card and then pay them off at the end of the month.


They have stated above why their credit is poor.

The reason why they won't let you on a cheap per month lease is because after 1 year you would owe a lot more than if you were paying more a month. So if you stopped paying for the car after a year as your poor credit says you might they would only have a tiny amount payed back on their one year old car.
If you can't afford to pay a reasonable amount a month or pay a large deposit maybe leasing isn't for you. Just try to get a bank loan and buy second hand.
Original Poster
MIDURIX

They have stated above why their credit is poor. The reason why they … They have stated above why their credit is poor. The reason why they won't let you on a cheap per month lease is because after 1 year you would owe a lot more than if you were paying more a month. So if you stopped paying for the car after a year as your poor credit says you might they would only have a tiny amount payed back on their one year old car. If you can't afford to pay a reasonable amount a month or pay a large deposit maybe leasing isn't for you. Just try to get a bank loan and buy second hand.



I can afford to pay a reasonable amount and a decent sized deposit. However I don't want to be paying unreasonable amounts; significantly more than the standard rates. Leasing is ideal for me. As mentioned the only reason my credit is low is because of the mentioned default which is out of my control, otherwise my all my credit is excellent including being in the electoral roll.

I was accepted for PCP credit on a used car recently, however the deal fell through after they made a mistake on the car's actual details. So I know there's hope. But I dont want to just go round every car dealer asking for a credit check.

MSG cars have been in touch with me recently, not sure if anyone has experience with these? Claiming to help those with bad credit get a reasonable car leasing deal...
Why can't you go for something smaller so the cost is lower? I drive an old small 1.2 litre car on the motorway daily with no problem and it's cheap to run. It gets up to 70mph with no problem

Edited by: "redarrowrules" 15th Sep 2015
Original Poster
redarrowrules

Why can't you go for something smaller so the cost is lower? I drive an … Why can't you go for something smaller so the cost is lower? I drive an old small 1.2 litre car on the motorway daily with no problem and it's cheap to run. It gets up to 70mph with no problem



I'm happy to do this, I think this is probably my only option. Although its frustrating as I may be paying the same price as a better/higher value car for it I've only ever had powerful engine cars. I noticed that some of these cheaper deals which I can get on poor credit are over 60 months hire which I'm definitely not comfortable with!

What car do you have by the way?
WaxMechaniK

I'm happy to do this, I think this is probably my only option. Although … I'm happy to do this, I think this is probably my only option. Although its frustrating as I may be paying the same price as a better/higher value car for it I've only ever had powerful engine cars. I noticed that some of these cheaper deals which I can get on poor credit are over 60 months hire which I'm definitely not comfortable with!What car do you have by the way?



Why not just go the bank loan route and get a mid-range 2nd hand car instead?
WaxMechaniK

I can afford to pay a reasonable amount and a decent sized deposit. … I can afford to pay a reasonable amount and a decent sized deposit. However I don't want to be paying unreasonable amounts; significantly more than the standard rates. Leasing is ideal for me. As mentioned the only reason my credit is low is because of the mentioned default which is out of my control, otherwise my all my credit is excellent including being in the electoral roll.I was accepted for PCP credit on a used car recently, however the deal fell through after they made a mistake on the car's actual details. So I know there's hope. But I dont want to just go round every car dealer asking for a credit check.MSG cars have been in touch with me recently, not sure if anyone has experience with these? Claiming to help those with bad credit get a reasonable car leasing deal...


So what % are they charging you?
Why not take the deposit and buy secondhand, then just keep it long enough for the default to drop off your credit rating.
Original Poster
I'm ideally looking for a new car to avoid the maintenance. I'm seeking to avoid the stress of replacing parts and fixing older cars. I'm always the one with the old banger! Everyone I know has a brand new leased car. I can now afford a new car after working hard for years, and I'd like something that's up to date too.
Original Poster
MIDURIX

So what % are they charging you?



Some companies are giving me over 40% interest rate
Does it get up to 70mph before the end of a full month?
redarrowrules

I drive an old small 1.2 litre car on the motorway daily with no problem … I drive an old small 1.2 litre car on the motorway daily with no problem and it's cheap to run. It gets up to 70mph with no problem



From this review of the Aygo:
"Where it pleasantly surprises is on the motorway; at 70mph the engine is only revving at 3000rpm and is barely noticeable. There's also little wind noise. It has enough poke to keep with fast flowing traffic and you can happily cover long distances in relatively serene comfort."

Most small car reviews come with similar comments.

WaxMechaniK

I'm ideally looking for a new car to avoid the maintenance. I'm seeking … I'm ideally looking for a new car to avoid the maintenance. I'm seeking to avoid the stress of replacing parts and fixing older cars. I'm always the one with the old banger! Everyone I know has a brand new leased car. I can now afford a new car after working hard for years, and I'd like something that's up to date too.



There's a big gap between a gleaming new car and banger with a 50/50 chance of passing the next MOT. I'd definitely look at what can be had at around 5 years old for, say, £6k.
Original Poster
redarrowrules

I drive an old small 1.2 litre car on the motorway daily with no problem … I drive an old small 1.2 litre car on the motorway daily with no problem and it's cheap to run. It gets up to 70mph with no problem

WaxMechaniK

I'm ideally looking for a new car to avoid the maintenance. I'm seeking … I'm ideally looking for a new car to avoid the maintenance. I'm seeking to avoid the stress of replacing parts and fixing older cars. I'm always the one with the old banger! Everyone I know has a brand new leased car. I can now afford a new car after working hard for years, and I'd like something that's up to date too.



Thanks for your advice! I think looking into a car that's a few years old is a good idea, I'm sure I can find one that's been well looked after enough to almost pass as new anyway. I'm not interested in a car that will need maintenance, or likely to need work, or just feels well used.

I've just been in touch with MSG cars who claim to help those with bad credit find a good car leasing deal. They've presented me with deals which are on par with leasing deals on any other website. Anyone have experience with these or similar?

That's interesting about the Aygo. Although its just far too small a car for me I'm a 6ft 28 year full time worker who likes a powerful car, and surrounded by mates with way meatier cars than an Aygo!
WaxMechaniK

Thanks for your advice! I think looking into a car that's a few years old … Thanks for your advice! I think looking into a car that's a few years old is a good idea, I'm sure I can find one that's been well looked after enough to almost pass as new anyway. I'm not interested in a car that will need maintenance, or likely to need work, or just feels well used.I've just been in touch with MSG cars who claim to help those with bad credit find a good car leasing deal. They've presented me with deals which are on par with leasing deals on any other website. Anyone have experience with these or similar?That's interesting about the Aygo. Although its just far too small a car for me I'm a 6ft 28 year full time worker who likes a powerful car, and surrounded by mates with way meatier cars than an Aygo!



Who cares what your mates drive, your not 18 anymore. Save some cash and either get a smaller car on lease or a 2nd hand one with a bank loan. No point in having a big flash car if you have no money to fill the thing up
Original Poster
redarrowrules

Who cares what your mates drive, your not 18 anymore. Save some cash and … Who cares what your mates drive, your not 18 anymore. Save some cash and either get a smaller car on lease or a 2nd hand one with a bank loan. No point in having a big flash car if you have no money to fill the thing up



Well thats the thing, I've been working hard building my career for years, and can now afford a better car. It's the right time, but my bad credit score is ruining this. Ideally i want a car that's clean and modern, with some good tech, particularly with iPhone integration, and a comfortable solid ride...
Have a look over on Pistonheads forum/gassing station/general gassing.
There's a lease thread there with a few people who are insiders in the industry - they might be able to point you in the right direction

pistonheads.com/gas…%3F
If you can get reasonable loan from somewhere, can you not just pay the lease deal all up front with the loan? Yeah sure you are paying say 7/8% more than someone else who's leasing but it's not £100 per month more?
Original Poster
Hey all. I really appreciate everyone's responses.

So in the end, I dropped my expectations and went for a used car. It was a bargain actually, £8000. I got accepted for bad credit finance MGS Cars at their 32% rate, ouch! However, when I called the garage to pay the deposit, they tried to put me through their own finance at 5% and low and behold, it went through! I got lucky! Did not expect that at all..
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