Trying to buy a car on PCP

[unicormb]

Our household income is around £90-100k, but mostly my DH's income, and he is self employed. I have regular benefits as I am a carer and have a disabled child, amounting approx £7k a year.

I am the only driver in our family. DH can't as he only has good sight in no eye and depth perception issues, which would make driving for him dangerous. He has no license.

We need a new car. Our current one is PCP due to end in November. I was approved for finance back then but I can't find anyone to finance the purchase now, despite decent credit scores. We pay £260 a month for current car. Looking to go electric next so happy to go up another £100. We can afford it.

I just can't get credit for it. He can't apply, as that's technically fronting and illegal. I am starting to fret because I've been turned down for credit twice now and I know it affects my score.

I have to find £6k in Nov to buy my car outright (we don't have this much in our savings). Or I have to sell my car. And I have a disabled child and blue badge. I need a car.

This was a niggle in the back of my mind before but it's just frightening me now. We need it sorted, but I have no idea what to do.

Can you get a bank loan instead?

Yes, but it would be more expensive and we would have to sell the car. I prefer pcp because I keep it for 3/4 years and then upgrade.

Its a very expensive way to have a car. You can get a decent second hand car for about 10k. Aim to keep it for a good long while so get something very reliable.

I would rather drive a newer car that is reliable. But because we can't afford to buy a whole car outright (most people can't) it looks like we might have to. It's just annoying because we can afford it. We have been affording it. Never missed or struggled with a payment.

Do you qualify for a mobility car?
They have electric cars on the scheme.

Why can't he get the car on pcp and you get insurance as the main driver? Not an expert, but I thought fronting related to insurance, not purchasing.

He doesn't, unfortunately. He's on low rate for mobility.

Apparently that's illegal.

Your post doesn't make sense. You claim to have a household income of 100k. You claim that you can afford £360 a month in PCP payments but you can't put your hands on 6 grand by November, 5 months away. Where are you blowing all your money?

My first though is whether your child and/or husband would qualify for mobility allowance?
If not surely your DH could purchase the car, register it in his name & you drive it? Can’t see anything illegal in that. I did a PCP for a car for my DH to drive a couple of years ago as I had had the better credit rating due to a higher income & it was no problem at all. I can’t see why you couldn't do the same but in reverse.

I've been told he cannot purchase or apply for finance unless he has a full driving license.

Life is expensive.

Start saving , on that income it should be doable to save 6 k by November, where does all you money go or are you trying to do this on the 7k that you actually get rather than your husbands earnings .

You might prefer pcp but if it’s not possible then you might have to consider a loan

You can make a joint application with lots of companies, apparently.

You can't afford your lifestyle.

What would happen if your husband was incapacitated long-term tomorrow? Do you have some kind of income protection insurance? Do you have your 3-month-income emergency fund?

You have to find the 6k then. What on earth is going on with your family budget to not be able to save. Yes life is expensive but you have good income.

You could lease a car, on a true lease (like a long term rental). The lead company remains the registered keeper and owns the logbook. You just have to insure yourself to drive it. You pay monthly, and for what you’re suggesting as a monthly payment you should be fine. You can lease for one, two or three years, and then start anew agreement on a new car at the end of the lease period.

You are correct OP in that it is classed as fraud to apply for HP or PCP, if you are not going to be the registered keeper and main driver, but it has nothing to do with having or not having a licence in general. Both my H and I have licences but I am not allowed to take out HP or PCP if I am not going to be the main driver.
If you absolutely must have a new car , although a decent 2nd hand one makes more financial sense, you'll just have to get a bank loan and buy outright.

This doesn’t make sense. I bought a car on a 3yr 0% purchase contract that my DH “carer” drives. The loan is in my name, and my DH is the registered keeper and driver. I’m disabled and cannot drive. Your DH cannot drive as well due to a disability with his eye sight. We will be done paying it off this year.

Fronting from what I understood was to do with car insurance and lying about who the primary driver is to get a lower rate.

I am a guarantor for my daughter’s pcp as she has a low income, could your husband do the same for you?

Couldn’t you lease instead? We found it to be cheaper, and I lease DH’s car with no issues (we were completely upfront that it was his car).

I'm happy to buy a good secondhand car for around £14-15k, I'm hoping our bank will lend us the money, we have our mortgage with them and credit cards (both currently paid off). Can DH apply for the loan? I guess we could do a joint application.

Utter rubbish, clearly you can’t afford it and then want to try and get it through other means.

Just get him to get the PCP deal and it’s irrelevant he only has a provisional.

He doesn't have a provisional and you can't get a PCP without a full license.