Hi everyone.
I currently own my van and have done for the past 5 years but now the mileage is over 150k and it doesn't drive as nice as it used to so I've been looking to replace.
I have tried applying for finance and a loan but both got declined. Im guessing it is because ive not really built up a credit rating as I don't use a credit card etc. however I have had finance before and I am a home owner.
So now looking at leasing (if I'm not rejected)
What is the best option or should I stick to trying to purchase outright?
Stusgsx
I've leased cars in the past. The idea of paying a monthly payment and having all bills (except insurance) rolled into one payment was great... when I was living the high life and could afford it. The rental for the vehicle, repair and maintenance, and road tax was all one payment and I got a great spec car for £275 a month.
From a business point of view, leasing is good because of all those reasons and because there's only that payment for your vehicle meaning you've got a better a chance of managing your finances without having to worry about paying for repairs and maintenance out of your own pocket. If you google vehicle leasing it should give you more information about how it affects your business accounts, usually in a good way. My husband used to work for a leasing broker and knows more about it than I do, but you can talk to any lease company and find out whether it's a good or bad idea for your business at this time.
The only downsides with a leased vehicle is, you're responsible for it's state when it goes back. You'll do your level best to look after it for the term of the lease but the minute it gets dented or scratched, you know you'll be in for a bill from the lease company to make the vehicle 'good' again. Plus some lease companies will levy charges for damage that you know nothing about. They tried to blame my husband for a big hole in the top of his windscreen on his last lease car, thankfully, he'd taken photo's of the windscreen on the day the lease company had it back. It turns out somebody at the auction place had been digging at a chip to make it look worse.
Think long and hard about vehicle leasing. If the benefits outweigh the negatives, then you should go for it.
