Welcome to the forum Commando1.

Will the new lease agreement be in your name, or will it be taken out by your employer?

Hi,

It is classed as a benefit car and is owned by my employer until the end of the 4 year term where I would have the option to either return the car to Lex Autolease, purchase the car or take a new car out for another 2,3 or 4 year term, I went through a credit check at the start of the agreement and it was fine however i'm concerned that at the end of term they might turn round and say no you can't get another lease as you are now in a trust deed?

Any advice or info would be greatly appreciated

I am in the exact same position. My company said it was fine as the car was a necessity to my work and without it I was unable to do my job and the benefit to the creditors would be I remain employed. I have since leased a new vehicle which was £15 a month dearer than my last and again it was of no interest to the trustee and the car remains property of the lease company.

It's an interesting one Commando1.

It sounds like the lease agreement is between the finance provider and your employer - so you'd think it would be your employer they'd credit check and there would be no need to do the same for you.

I think if you're looking at a new lease term, and they credit check you, they'll be aware of the trust deed. What they'll choose to do with that information I don't know if you're not their main credit risk.

Kdog/TDA

It's good to know i'm not the only one in this position, i think my company ran the credit check at the start for affordability purposes but i've never missed a payment so hopefully at the end of the term they can either extend the current lease on the car or I can pay a bit extra for a new lease car through my work. Am I right in thinking if my lease isn't renewed and I went for finance with a company that I could only go up to £3k? What if i wanted a car at say £10k what happens?

Thanks again for the advice

Hi again.

If a car is leased, or on hire purchase, you don't own it. It's owned by the finance provider.

The £3000 "asset" threshold is therefore irrelevant in this instance.

Getting finance for a vehicle during a trust deed might be difficult and/or expensive and might require the consent of your trustee.

As Trust Deed Assistant says, the £3000 figure wouldn't be relevant for taking on a car on a lease/HP basis. The monthly payment required will be the most relevant factor from your Trustee's point of view - ie they may not be willing to sanction something that is costing a great deal each month. Given you have been paying an amount for the lease so far than I'd have thought you should be ok as long as you are staying within the same monthly payment figure.

Kevin/TDA

Thanks for the information.

To be honest I would prefer just to lease and get a new car every 3-4yrs so hopefully as I have been paying it for 2 and half years with another 18 months left and as it comes straight off my wage and will always be paid hopefully I will not have any issues. I spoke to my trustee yesterday and they were not concerned as it is leased through my company. They did mention a finance company called Midland Car Credit if anyone is looking for finance or lease whilst in a trust deed etc. Has anyone on the forum used this company before?

Hi Commando

I was same did not want family to find out, almost 5 years since I signed my Trustdeed been discharged almost years no one found out even managed to keep it from my new partner which happened during trustdeed.

Biggest issue was he couldn't understand why I didn't own a credit card and never applied for credit.

He presumed I hated debt. Good luck with the T D it will be over soon

Hi Buddyup

I'm actually the opposite,my family and my gf know i'm in debt but think it's manageable so i've told them that im getting rid of my credit cards and switched banks to get a better deal on a consolidation loan. Hate lying to them but it's a hell of a lot better than them finding out the truth!

I knew this day was coming spending as if i was earning £35K a year when im on £27K.
I just want to get the process underway and complete it a.s.a.p

Congratulations on finishing your deed and thanks for the beat wishes.

I told everyone. At start I didn`t but in the end I couldn`t care less anymore. I did it for me and its been a good decision. After I started telling certain people I was surprised at how many of them went down the same route and were in or had finished a ptd. Even one worker I know who is on approx 100k a year salary.

Hi kdog7

Your post is quite enlightening.

In my experience the biggest fear is the unknown and the thought that others may find out. Once you deal with all the unknowns and realise firstly that the process is between you, the creditors and no one else and that no one else is involved, then the decision should be based on what is best for the individual.

Mark