Pre-paying a whole lease
Discussion
Later this year I'll be moving to the UK. I'm a Brit but have lived abroad all my life.
As I will have absolutely no credit history, it will be impossible for me to get any sort of car financing, so I'll probably have to buy something reasonably priced in cash.
I did get to thinking though, what if I could pay for an entire lease up front to eliminate the risk for the lender, allowing me to afford something more unreasonable / fun. Say for example a lease requires 5k down payment and 600 / mo for three years, I would like to just pay 26,600 up front all in one go (5,000 + 600 x 36 months). No monthly payments and I give it back at the end of the 3 years.
Does anything like that exist? What other options are there?
As I will have absolutely no credit history, it will be impossible for me to get any sort of car financing, so I'll probably have to buy something reasonably priced in cash.
I did get to thinking though, what if I could pay for an entire lease up front to eliminate the risk for the lender, allowing me to afford something more unreasonable / fun. Say for example a lease requires 5k down payment and 600 / mo for three years, I would like to just pay 26,600 up front all in one go (5,000 + 600 x 36 months). No monthly payments and I give it back at the end of the 3 years.
Does anything like that exist? What other options are there?
There’s still a risk to the lender, yes you may pay £26k upfront but I assume it will be a much more expensive car, you pay them £26k, they give you a £50k car and you drive it out of the country and break it for parts in Romania etc.
There may be a specific lender or broker who could help you, but be prepared for a ‘rate for risk’ of silly APR for the pleasure.
Personally I’d be looking to buy used and buy outright in your situation.
There may be a specific lender or broker who could help you, but be prepared for a ‘rate for risk’ of silly APR for the pleasure.
Personally I’d be looking to buy used and buy outright in your situation.
Funny that this has come up as I've experience of this with a customer of mine in exactly the same position as you, in short he couldn't find anyone who would offer this.
I spoke to my finance company and asked why, they said that as there was no trace of him in the UK, so therefore they have no history of his credit worthines then what's to stop him paying 2 years upfront and then buggering off back to his home country with the car.
In the end he bought a new car outright from me, he is due to collect it at the end of the month.
I spoke to my finance company and asked why, they said that as there was no trace of him in the UK, so therefore they have no history of his credit worthines then what's to stop him paying 2 years upfront and then buggering off back to his home country with the car.
In the end he bought a new car outright from me, he is due to collect it at the end of the month.
Haha, you're absolutely right, much car can be had for 26k! But what I really want is a 50k car, so I rather drive something cheap and simple for a year or two, then get what I really want when I can really afford it. Maybe the new M5 (used) will be within striking distance by then...
I've done this before - I was in the Middle East for a while and couldn't get insurance on a Chevrolet CR8 (rebadged VXR8 / HSV) until I was 25, so I leased a Yaris from Hertz for a year, then got what I really wanted a year later. It was worth the wait - I'll attach a pic if I can figure out how.
I'm also starting to think that getting insurance with zero credit history / no claims history on an expensive car is probably going to be stupidly expensive / difficult, but probably less so on a used 10k Golf.
I've done this before - I was in the Middle East for a while and couldn't get insurance on a Chevrolet CR8 (rebadged VXR8 / HSV) until I was 25, so I leased a Yaris from Hertz for a year, then got what I really wanted a year later. It was worth the wait - I'll attach a pic if I can figure out how.
I'm also starting to think that getting insurance with zero credit history / no claims history on an expensive car is probably going to be stupidly expensive / difficult, but probably less so on a used 10k Golf.
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