Car Finance or Leasing - Never Done This Before...

[JudderMan]

Need to update my signature, sold my A4 in December Needed to get a run around before I buy 'new' or newer than I've ever bought before. Just don't have the time or inclination to be under the bonnet all the time, so looking at leasing or financing a Nissan Note (I know I know, sorry). But, once the wife has passed her test (I've been saying that for 10 years haha) I'll be back in an Audi and she can have the shopping trolley.

Leasing - found some good deals, bit worried about handing the car back without any dings as the Audi got hammered in car parks even when parking away from everybody. I like the idea of giving it back and getting something else in 2 years. I know it's essentially renting a car but depreciation is something I don't want to invest in. Plus, no hassle, no worries with leasing just rent the ****** and give it back. I might put it through the business as well, not 100% on this yet.

Finance - as above, depreciation is the key factor here. Nissan Notes seem to lose 40-50% in the first year then remain static for next 2 years then drop quite slowly although <2013 was a different face so prices won't be similar but even 2008 Notes are holding strong. I know all cars cost money, but the A4 cost me boat loads of cash and it was enough to make me look at possibly more reliable cars ie. 1 year old. All leasing companies I've looked at come out at similar prices so shopping around hasn't really helped.

Thing is I don't know what I'll be doing in 2 years. Looking to buy a house next year so I should really just keep the banger I've got as a run around. Business 'should' be taking a leap in the next 6-12 months, hopefully within 3 months, so that would help move things forward in my goal of getting a Porsche as a weekend car and a Note as a daily (don't mind the Note if I have a 911 in the garage) or B5 RS4 or S3 saloon depending on finances. I've looked at the usual comparison sites, used a site called Car Finance Machine which seemed to be a broker of some sort but as I'm self employed a broker is probably a better idea, and asked around but friends seem to just buy whatever and not care about depreciation or how much it costs per month.

I haven't been in a dealer yet as I'm waiting for a CCJ to come off my credit report from 6 years ago - was out of the country for 4 years and didn't even know I got it. It comes off at the end of this month, but I'm assuming it takes a month or so to update credit report.

Any tips would be great. Any self-employed people have any difficulties or is it easier to get finance as it's secured against the car rather than an unsecured loan/agreement. Should I just keep my banger of a car and not bother until I get a house (should be next April-July I'm hoping to apply for mortgage so a lease/finance would be a year into it. Was thinking 2 year lease or 4 year finance).

Maybe this thread is better suited to moneysavingexpert or something But I trust you guys' (and girls') opinions.

 

[Raiden]

Thought about buying a car with a credit card with a interest free rate?

Only ever had finance once but I paid it off a month later due to getting into some money. My used S3 I paid by card and its interest free for 12 months then when the deal is over I just transfer to another card and don't spend on it. People like MBNA you can even put the funds in your account so if you wanted to buy a car privately cash?

And if money is tight one month just pay the minimum amount. But I try not to do that as tempting as it but I should pay mine off in 2 years

 

[JudderMan]

Cheers Raiden, TBH having a CCJ on my report has affected any line of credit so I assume (might be wrong here) but if I were to get a credit card (unsecured) then the credit limit would be fairly small compared to a secured finance deal on a car - ie. if I didn't pay they come and get the car.

However, I'm not sure how credit card companies decide on the credit limit but getting one for 8k seems a little unacheivable at the moment with having not a great deal of credit (small unused overdraft is all) at the moment due to that bladdy CCJ BUT I appreciate the answer as that would be ideal however I'm not an ideal customer for a credit card being self employed

 

[Raiden]

Some companies give them if you got CCJ but all depends.

To check stuff like that and your rating I use a website called 'noddle' and its free to use (for now) and you can see if you can get a card and what limit. Same with loans and mortgages.

But I thought after 5 years CCJ come off your record? I could be wrong

 

[JudderMan]

Hmm, think it's best to wait until after the 22nd of this month when the CCJ comes off - I've read on different places that it's 6 years and if anyone ever asks have I 'ever' had a CCJ I have to declare it even after 6 years, sure I can 'forget' to though. What a nightmare it's been having to wait all that time. It was from a phone contract that I paid off before I left the country and double checked the day before we flew as I'd heard about them adding on fees and charges but all paid off, then I get back to the UK and I've got a CCJ. It was almost 10 years ago but still causing problems!

Yeah I have creditexpert and am trying various things to boost credit rating - I have a 0% interest on a road bike but put a large deposit down simply to get a credit deal going, and it's a fancy carbon thing. Will try Noddle though didn't realise you could get it free!! I've been paying £15pm for 2 years for creditexpert. However they do the same and only give me crappy high risk high interest cards/loan options so will wait til next month and see what's what after CCJ is off.