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.

Right, this got me worried so actually dug up my HP agreement, apparently it was a joint application. Relief!

Who did you buy through @FoxandFeathers ? He'd be happy to do that. As I said we've been doing it for nearly four years, no problem. Don't know why people are saying we can't afford it when we have been.

Well tell me who you bought from please @Discovereads and help me out here!

Volvo. We did a HP.

Only one applicant has to have full U.K. driving licence
www.creditplus.co.uk/car-finance-glossary/joint-application/

Urgh, I'm hoping we get lucky, I don't want a flash car, I don't know why a few people think that. I currently have a Qashqai. I want a Leaf because a) the battery life isn't an issue for how far I drive b) no fuel costs c) no tax d) it's better for the environment.

I'm not trying to cruise around in anything fancy. I just want a reliable family car.

Thank you. I just was looking for a bit of help and this is exactly what I was after.

www.carfinance247.co.uk/faqquestions/26/can-i-get-car-finance-without-a-driving-licence?gclsrc=aw.ds&&utm_medium=cpc&utm_source=google&utm_campaign=UK_GN_Performance_Max_Test&utm_content=&utm_term=&utm_type=&gclid=EAIaIQobChMI6v7yiMSP-QIVTbTtCh2OEQ0cEAAYAyAAEgIaSvD_BwE
I think its more to do with proving ID

Jesus you didn't a lot. I don't earn anything and my husband earns similar to your household and just bought a £35k merc from savings.

On that kinda of income you should be able to save a good few thousand a month.

I'd be seriously looking at your lifestyle and spending.

I live in the south east. It's expensive. I have a disabled child. That's expensive. We live within our means but we bought a house recently and we don't have a lot spare at the moment. We will get there.

We ringfence outgoings eg car payments. They are always paid on time. We have no other debt. Not even credit cards. We just don't have lots of spare readies. Like most people.

As a self-employed person, he is planning to claim the car as a business expense isn't he?

I appreciate you drive it, but there must be times, some times when it benefits his business? If you aren't claiming everything you can as business expenses when one of you is self-employed then you need to start.

If your on a PCP you should be able to just hand back the car at the end of the term, you don’t have to pay and keep it. I’d hand it back and then buy another with a normal loan which your husband could apply for. If you needed to you could then theoretically sell off the car in the future to pay off the remaining loan (depending on how it keeps its value obviously).

How old is the car you have £6k on?

Can you get a loan for that instead, pay it off ASAP then get the PCP when you're in a better position in a year or two?

Having looked back through the nuances, it sounds like a bank loan is a) affordable and b) your only option. You could save up as much as you can between now and November to reduce the amount you’ll need to borrow.

I'm pretty sure he can't claim it, his accountant will have been through that with him.

It's worth around £10k and I have around £3k equity in it, it's a good car but it needs new tyres all round and the air con is shit.

This is where my thinking is going too. I think we could get something reliable for around £15k.

Toyota.

Correct, a self employed person can’t claim for a car that is literally never used for their business.

Why is your credit rating bad OP?

This is also a good idea. Second hand cars are holding their price very well at the moment so it won’t depreciate too fast.

It isn't. I just don't personally have an income above my state benefits.

Would your benefits be affected if you were employed by your husband to improve your credit?

You can refinance your current car on pcp for another 3 years (effectively but it as a second hand car on finance) and use the equity in your car as finance. Just ask your finance provider. My DH has just done this. His monthly payment went down a lot as well.