Published on October 2nd, 2018
Car leasing – whether for business or personal use – has soared in recent years, especially since more individuals now see the benefits car leasing brings.
When you lease a vehicle, you don’t have to come up with a big deposit; usually, a deposit of 3 months of the vehicle’s fees will do.
When you lease, you also don’t have to worry about maintenance and depreciation, as at the end of the period, you just have to return the vehicle to the car lease provider.
However, there are some requirements for leasing as well, so it’s best for you to know what to expect in that regard.
But if you are thinking of leasing a vehicle and you think you don’t have a good credit score, here’s what you need to know.
The Conditions For A Personal Car Lease:
- Proof of residence at a particular address for at least five years (you can prove this by submitting utility bills and so on).
- Proof of at least three years’ employment
- Proof of voter’s registration at the given address
- Proof of credit history, especially proof of good credit history (no late payments or missed payments, bankruptcies, or CCJs)
- Proof of identification, such as a passport copy or a full driving licence
- Three month’s proof of salary through bank statements or pay slips will prove your capability of paying the monthly fee, and it also shows the level of your income.
What Providers Do
To make sure that you are qualified to benefit from a car lease agreement, providers will carry out a standard check of your credit rating, often through companies like Equifax or Experian.
If you are worried about your credit rating, here’s what you need to know: since many major car leasing providers have a high rate of rejection due to finances, there are now more car leasing providers who offer ‘non-status’ leasing.
This means that the provider will deal with each application on a case-by-case process rather than just running it through a generic computer programme.
So if you are looking for great personal car lease deals and are concerned about your credit score, you have a higher chance of approval from an independent, smaller car lease provider compared to a major provider – and there are now plenty of those in the UK.
Even if you are a start-up enterprise and are looking for a lease deal, you could benefit from independent car lease providers because they are not too strict when it comes to their requirements on your history of trading.
If you have recently gone through a divorce, this may have resulted in turmoil in your finances. But the fact is, many people who go through a divorce would then have to get a car for themselves if their partner gets the marital car, and this is where non-status leasing can also be a big help.
People who have recently been unemployed and who have only now found employment may also need a car, so they can also benefit from non-status leasing.
The key is to find a smaller car lease company which can offer more flexibility in regard to your situation so that you can begin to benefit from the right car lease arrangement for your needs.