Is it easier getting finance with a big deposit?

[D1on]

I haven't got a good credit rating.
Am I more likely to be accepted if I put down a £5k deposit on a £10k car?...

[chrispmartha]

D1on said:

I haven't got a good credit rating.
Am I more likely to be accepted if I put down a £5k deposit on a £10k car?...

I got turned down for a personal lease last January, I have a very good credit rating, the lease company couldn't understand it but I offered to put a bigger deposit down and they said it wouldn't make a difference as they just look at the total cost of the lease (tis sounds odd to me but that's what they said)

However I have just been accepted on a Business Lease and they only accepted it on condition that I took it o a 6+23 not a 3+23

So my answer is - who knows, but if its a finance deal putting £5k deposit down on a £20k car means you are only financing £5k so I would have thought you have more chance of getting accepted

[Dimebars]

D1on said:

I haven't got a good credit rating.
Am I more likely to be accepted if I put down a £5k deposit on a £10k car?...

Someone out there would probably lend you five grand

The question is whether you think double-digit APR % is acceptable

Why not buy a five grand car instead?

[stevekoz]

chrispmartha said:

I got turned down for a personal lease last January, I have a very good credit rating, the lease company couldn't understand it but I offered to put a bigger deposit down and they said it wouldn't make a difference as they just look at the total cost of the lease (tis sounds odd to me but that's what they said)

However I have just been accepted on a Business Lease and they only accepted it on condition that I took it o a 6+23 not a 3+23

So my answer is - who knows, but if its a finance deal putting £5k deposit down on a £20k car means you are only financing £5k so I would have thought you have more chance of getting accepted

Bit off topic but are you self employed is that why you went for the business lease or was it on behalf of a company/company car scheme? I'm maybe looking for a lease deal and just wondered as recently gone self employed.

As for OP - its unlikely as the credit check generally looks for affordability not the amount of deposit. If you can afford to put £5k down and are just looking to finance the rest, i would rather look at a slightly cheaper car than worry about the finance. Save the monthly payments and go about building credit in different ways and then when you are in a position to afford it, you need not worry about the acceptance side.

Granted maybe not what you want to hear but i felt worth noting.

[chrispmartha]

stevekoz said:

chrispmartha said:

I got turned down for a personal lease last January, I have a very good credit rating, the lease company couldn't understand it but I offered to put a bigger deposit down and they said it wouldn't make a difference as they just look at the total cost of the lease (tis sounds odd to me but that's what they said)

However I have just been accepted on a Business Lease and they only accepted it on condition that I took it o a 6+23 not a 3+23

So my answer is - who knows, but if its a finance deal putting £5k deposit down on a £20k car means you are only financing £5k so I would have thought you have more chance of getting accepted

Bit off topic but are you self employed is that why you went for the business lease or was it on behalf of a company/company car scheme? I'm maybe looking for a lease deal and just wondered as recently gone self employed.

I'm not Self Employed its through my Ltd Company, however I did lease an M135i when they first came out when I was self employed, the price was a bit cheaper than doing it personally.

I've gone through the company as its an electric car so there are quite a few tax benefits for doing it this way, that and the Polestar Personal Leases were really silly money.

[GreatGranny]

Dimebars said:

Why not buy a five grand car instead?

This! If you have a bad credit score why try and get credit?

Lots of decent cars out there for £5k.

[chrispmartha]

GreatGranny said:

Dimebars said:

Why not buy a five grand car instead?

This! If you have a bad credit score why try and get credit?

Lots of decent cars out there for £5k.

getting credit is not a bad idea if you have a low credit score as it will increase it (as long as you pay it back) however in this instance I don't think credit on a car would be the best credit to get.

Get a credit card, use it every month and pay it off every month.