Car Allowance / Leasing query
Discussion
Hello all, I've been offered a new job (finally! after being out of work for the past 9 months) which comes with a car allowance c. £500pm. My previous roles always included a company car, however my new employers do not offer a company car option.
The requirements for the car allowance is that the car has to be less than 6 years old, however my current car is 10 years old and pretty battered. Therefore, I am looking at finance options. BUT (a huge but), my credit history is pretty poor (have spent the last 2 years slowly bringing it up) but its still fairly poor.
Now, the question is, are there any companies out there who can lease or finance a car to me (i actually prefer lease) based on my car allowance and somewhat poor credit history? I can put a few k as deposit or initial payment. I remember a few years ago some company advertising on radio and telly that if you had a car allowance, "apparently" they could guarantee acceptance for a lease vehicle. Any idea of who this is and whether they still exist? Or whether this was a total con and full of crap.
Any suggestions or thoughts on the above would be much appreciated.
The requirements for the car allowance is that the car has to be less than 6 years old, however my current car is 10 years old and pretty battered. Therefore, I am looking at finance options. BUT (a huge but), my credit history is pretty poor (have spent the last 2 years slowly bringing it up) but its still fairly poor.
Now, the question is, are there any companies out there who can lease or finance a car to me (i actually prefer lease) based on my car allowance and somewhat poor credit history? I can put a few k as deposit or initial payment. I remember a few years ago some company advertising on radio and telly that if you had a car allowance, "apparently" they could guarantee acceptance for a lease vehicle. Any idea of who this is and whether they still exist? Or whether this was a total con and full of crap.
Any suggestions or thoughts on the above would be much appreciated.
Andy, do you mean 9 months upfront or 9 month plus agreement?
Steve, yep, I'm aware its before tax. If I could get a contract hire car for less than £400pm based upon my credit history, that would be amazing. Only thing is that I would be doing around 18k miles pa (includes business and personal miles).
Steve, yep, I'm aware its before tax. If I could get a contract hire car for less than £400pm based upon my credit history, that would be amazing. Only thing is that I would be doing around 18k miles pa (includes business and personal miles).
ads_4116 said:
Andy, do you mean 9 months upfront or 9 month plus agreement?
Steve, yep, I'm aware its before tax. If I could get a contract hire car for less than £400pm based upon my credit history, that would be amazing. Only thing is that I would be doing around 18k miles pa (includes business and personal miles).
Easily done.Steve, yep, I'm aware its before tax. If I could get a contract hire car for less than £400pm based upon my credit history, that would be amazing. Only thing is that I would be doing around 18k miles pa (includes business and personal miles).
Get a 2.0 TDI 150 Octavia for muchess than 400 a month for 18k miles.
Think I was quoted 320 for 15k miles (estate SEL)
RUSTILLDOWN said:
Congratulations mate! I always think it’s best to take the car (rather than cash) if doing a lot of miles because it’ll include expected and unexpected (eg flat tyre) maintenance costs.
That's the reason I have always stayed with a car, I've had 3 ruined tyres in 2 months from screws.I'm waying up coming out the scheme and I just keep thinking how bad my luck is so stay in!!
If my new employer had a company car scheme, I would jump at that. However, even considering its a large company, they do not have any company car schemes at all. And only certain roles get a car allowance (such as my new role).
What i don't understand is why the car has to be less than a certain age? Does it make any difference? And do they actually check?
A 12 month contract hire would be ideal. Any recommendations of companies who may consider me bearing in mind my credit score?
What i don't understand is why the car has to be less than a certain age? Does it make any difference? And do they actually check?
A 12 month contract hire would be ideal. Any recommendations of companies who may consider me bearing in mind my credit score?
If there's a probationary period would it not make more sense to get that out of the way before entering into a new finance agreement? You can always make that case if challenged and it gives you a few more months to build your credit up and potentially get something nicer when the time comes.
ads_4116 said:
If my new employer had a company car scheme, I would jump at that. However, even considering its a large company, they do not have any company car schemes at all. And only certain roles get a car allowance (such as my new role).
What i don't understand is why the car has to be less than a certain age? Does it make any difference? And do they actually check?
A 12 month contract hire would be ideal. Any recommendations of companies who may consider me bearing in mind my credit score?
They have a duty of care that you're not out on company business in a dangerous old clunker plus they don't want people spending 1 months' car allowance on a car and turning up to visit customers in something that looks like a knackered old minicab.What i don't understand is why the car has to be less than a certain age? Does it make any difference? And do they actually check?
A 12 month contract hire would be ideal. Any recommendations of companies who may consider me bearing in mind my credit score?
RUSTILLDOWN said:
Something doesn’t feel right here so I’d wait until you start and then investigate their intranet etc.
To me, there’s no way they can specify restrictions (eg less than x years old) unless they have a company car scheme as your car allowance is basically just salary.
They can and most companies will. Although it is taxed as salary, it will appear on the payslip as a car allowance, so it can be amended and withdrawn if you change role.To me, there’s no way they can specify restrictions (eg less than x years old) unless they have a company car scheme as your car allowance is basically just salary.
As it's specifically there to purchase a car, they have every right to ask for certain requirements. (I was banned by a previous employer from running a new-ish Mustang as they thought it was inappropriate).
I'd want to know what mileage allowance they're paying, as that makes a significant difference to the car you'll want to buy.
RUSTILLDOWN said:
Something doesn’t feel right here so I’d wait until you start and then investigate their intranet etc.
To me, there’s no way they can specify restrictions (eg less than x years old) unless they have a company car scheme as your car allowance is basically just salary.
There’ll be a company car policy that the OP will have to sign.To me, there’s no way they can specify restrictions (eg less than x years old) unless they have a company car scheme as your car allowance is basically just salary.
That policy will specify age of the car you buy and any other restrictions - number of doors, body type.
If you don’t sign the policy, you don’t get the money.
jonwm said:
RUSTILLDOWN said:
Congratulations mate! I always think it’s best to take the car (rather than cash) if doing a lot of miles because it’ll include expected and unexpected (eg flat tyre) maintenance costs.
That's the reason I have always stayed with a car, I've had 3 ruined tyres in 2 months from screws.I'm waying up coming out the scheme and I just keep thinking how bad my luck is so stay in!!
It even far, far outweighed the cost of extending the manufacturer warranty to cover major failure.
Muzzer79 said:
There’ll be a company car policy that the OP will have to sign.
That policy will specify age of the car you buy and any other restrictions - number of doors, body type.
If you don’t sign the policy, you don’t get the money.
Fair enough, I’ve had a car allowance for many years / many roles and never needed to sign anything.That policy will specify age of the car you buy and any other restrictions - number of doors, body type.
If you don’t sign the policy, you don’t get the money.
Muzzer79 said:
I can only speak from personal experience but the financial advantages of opting out of the company car scheme have far, far outweighed the cost of unexpected mechanical failure for me.
It even far, far outweighed the cost of extending the manufacturer warranty to cover major failure.
Agreed, but there must be a sweet spot based on number of miles.It even far, far outweighed the cost of extending the manufacturer warranty to cover major failure.
The expected and unexpected maintenance is often higher than people think. Cars are bl00dy expensive these days!
Gassing Station | Car Buying | Top of Page | What's New | My Stuff