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Edwin Miles. Underwriting Manager

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Help with bad credit car leasing

I have approached a company who advertise as being help even if you have default and lo and behold have been declined.

I work, have no arrears on mortgage, council tax, or current car finance. I did have 3 credit cards that when we had a business were relied upon and then went into default. Two of the companies have accepted a payment plan based on income and outgoing no problem but Abbey who though initially were fine, then got taken over by MBNA who decided to call the debt in and pull the agreement. So, I ended with legal threats a visit to court whereby although not issued with anything formal was advised to go away talk to MBNA solicitors and agree a payment.

This was agreed and will be in place until Jan 2016. I am happy to lease and not own the car to make it easier but still every door slams. Is there anything I can do?

Posted by Rachel on

Answer.

Hi Rachel, apologies for the delay in responding.

Firstly can you tell me where you have applied and been declined? This will help me gauge whether we can get you approved or not.

Secondly, how much are you trying to borrow and is it for a brand new car? The reason for you being declined may be the amount you're trying to borrow. To get a new car on a lease you need to have very good credit history.

As you have a few blemishes this will also be causing you a few issues. We do have one company that may be able to help but you would need a deposit of some kind. Is this possible? If so, please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer. Thanks, Edwin

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Question.

Hi Ed, I approached Affinity. Die to them advertising the fact that they can help anyone who has had issues, other than bankrupt gave them the truth about my defaults and a breakdown of In and Out and what was spare. My thought was that if you are leasing to hand back in 3 years and the car is NOT in your name it is safer way for those who have had issues to gain vehicle as car taken from you if no payments made. I have a proven record of making my payments, and the payments I have set up with credit card companies has never faltered, Clearly all I have done is not manage to pay the minimum and therefore applied to them for a payment plan, which they did agree to but because of not adgering to original contract they have to hit default. Affinity responded to me with a Corsa 1.2 based on 3 Years lease at 10,000 miles at £159.00 a month. I currently pay £224.00 a month for a Peugeot 207 on 9000 miles. Clearly I have misunderstood the whole process I thought by leasing in this way you have more chance than a HP agreement or ballon payment process. I find it hard to believe that nobody can help people who, although have hit defualt, have never then faltered on monthly installments and no arrears on mortgages or council tax etc, especially with how the country has gone these last few years. I will be in a position to pay some deposit by late March and my intention would be to sell my current car, clear the remaining finance and put the surplus also into a deposit as opposed to just hand the car back on the voluntary basis or indeed now not wait until Oct 2012 to hand back at end of term with no penalty.

Posted by Rachel on

Answer.

Hi Rachel, my advice would be to sell your current car and use the money as a deposit towards a newer one. Over the next 2 months make sure all finance agreements are paid on time and then make an application with us when you're ready. Fingers crossed we'll be able to get you approved (the hard part) and then we'll have you in a new car in no time at all.

Posted by on

Question.

Hello, I have in the last 6 years had a car with Mercedes on a lease basis and had no problems with obtaining credit.

However, I recently tried to get another car on lease and was flatly refused. I obtained my credit report and saw that there were 2 issues - one with a missed payments of under £15.00 pounds with a retail agreement that I was unaware about and am now disputing - but also with my mortgage payments - it was a joint mortgage the other parties are now not employed so the account is in arrears for a few years.

It did not default but is a delinquent account. Within the last month I have paid off the arrears but I have recently been rejected by BMW as my Mercedes contract is coming to an end. Can you assist me with how I can lease again if that is possible?

Posted by John Master on

Answer.

Hi John, thank you for your question.

The mortgage arrears will cause you problems and to get a car on lease directly from the manufacturer will not be possible unfortunately.

We do have lenders on our panel that offer attractive PCP deals however, i think we'll struggle to get you approved with these particular lenders too. The only option you have really is financing a car on "HP" - Hire Purchase. This is where you own the car at the end of the agreement once all payments have been made.

This will help re-build your credit history back up but you'll have to get a used car - not a new one. We could even re-finance your current car though if that's an option.

Please make an application when you're ready and once approved we provide a no obligation quote and no up-front fees are charged. Kind Regards, Edwin

Posted by on

Question.

Hello, I've had a bad credit history in past but worked hard over last couple of years to clear 90% of the debt with just a couple of hundred quid left to pay!

However, it all still all shows on my credit report. I'm financially sound and have just had a promotion at work which requires a new car.

I am being given a car allowance but I no I won't be able to get credit to get one on finance. Can you help? Regards, Ema

Posted by Ema Brocken on

Answer.

Hi Ema, thank you for your question.

Luckily we have plenty of niche lenders on our panel who help people with a past bad credit history. As long as you have a UK driving licence and can prove your income with payslips we have an opportunity to get you accepted. A deposit of some description also helps but isn't always mandatory.

The good news is that you have been working hard to clear up your debts too so this will massively go in your favour. Please make an application and once accepted we provide you with a no obligation quote and you can buy a car from any dealer. Kind Regards, Edwin

Posted by on

Question.

Hello, I am due to start a new job next month (£29K) after being unemployed for a couple of months and my V reg car needs a new head gasket and is not worth spending the money on, so no deposit.

I have recently moved house and my credit rating is 849 on Experian. I have two negative markers - one default marked satisfied from 2010 which was included in my bankruptcy July 2009 - I was discharged in 2010. Would I be likely to be approved for a PCH, PCP or a loan for £7000 over 3 years?

Posted by Carey Cooper on

Answer.

Hi Carey, thank you for your question.

First of all, the good news is that we have lenders on our panel who help ex bankrupts get car finance. You also seem to have a fair credit score which is good to see.

However, most lenders we deal with (who help people with past credit problems) need to see 3 months payslips as proof of income before they will lend any funds. I'd advise to wait until you have this documentation before applying.

Please make an application when you're ready and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Question.

Hi, after years of anxiety/depression, being in and out of work etc I started to recover and get myself back on track

About 3 years ago, I negotiated settlements and cleared off all the debts on my experian file. Since then I have taken out a credit builder credit card and not missed a payment on anything now for about a year and a half. My last default falls off next month. I speak to experian all the time to get their advice. In June my score was 964.

I applied for a lease through a finance company who use experian for their credit checks. It took quite a while, but I was eventually declined. I still have a load of missed payments that are 4 to 6 years old, on accounts that I have managed to get the word 'default' removed from but the sixes are still there inside the accounts.

Experian say my score is based mostly on how my active accounts are being managed now. I thought with provable income and my score as it is now, I would be accepted no problem. Can you help?

Posted by Stuart Coleman on

Answer.

Hi Stuart, thank you for your question and explaining your current circumstances.

The good news is that you're no on top of your debt repayments and you issues are in the past. It's also good to see you have some recent clean credit with your credit card and have a stable income.

As a company we can't provide car leases as we don't sell new cars but we can hopefully get you accepted for car finance. This enables you to choose a nearly new / used car from any dealer of your choice.

Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin

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