Car Leasing with Bad Credit; The Facts
Personal credit has become one of the more pertinent issues in modern life as we head to a more “cashless society” and move away from outright purchasing of goods and services.
The difficulty is that all products and services have different rules and considerations; for example taking out 'finance' on a mobile phone contract is a significantly lower undertaking than leasing a new vehicle or obtaining a mortgage on your house. Without clear advice, some customers try to enter into contracts which are either unsuitable for their needs and requirements or they try to obtain good/services which do not meet their individual credit profile.
Contract hire and car leasing is a credit-based product. What this means practically is that in order for you to procure a lease car or van from our panel of selected lease vehicle financial providers (which we will introduce you to,) you will first have to complete a credit-check.
To dispel the myth/misnomer, car leasing is not for customers who have bad credit. This is not something which you should consider as an alternative to purchasing a vehicle and/or where you have been declined for credit. You must differentiate car leasing from a non-status product like daily or weekly car hire arrangements.
In order to proceed with leasing a vehicle from a credit broker like CarLease UK, 'credit checks' will be performed at certain stages of the proposal. For this reason customers will be asked to supply us with various forms of information about themselves...
Information required to lease a vehicle:
As part of providing our financial companies and lease car suppliers with detailed and accurate information, we will ask for you to supply:
In addition, as part of Treating Customers Fairly, we ask customers to sign and confirm the following below:
When you are completing the proposal form please ensure you accurately set out the details to minimise disruptions or credit declines.
Some useful points to note:
Before speaking to the team here, if you do have any concerns regarding your credit-status, it is worth getting a 'credit report' initially (free 'credit report' providers can be found online.) This will help you to understand some of the basic components of your credit profile which a finance company/ vehicle supplier will use to assess your suitability.
NB/ Sometimes customers may find that their credit status is classed as 'bad' or 'poor' when (for example) they have used a pay-day loan in the last 6 years, as this alone may preclude your ability to take out a lease...
Credit checks are an obligatory part of leasing any new vehicle, car leasing customers with bad credit and lease car customers with good credit undergo the same credit checking process before being successful in leasing a new vehicle. If you would like to know more about what kind of credit checks (soft and hard) are undertaken simply contact us in advance of submitting your application.
CarLease (UK) Ltd t/a CarLease UK, e-car lease and VanLease UK is Authorised and Regulated by the Financial
Conduct Authority – our Firm Reference Number (FRN) is 706617.
Carlease (UK) Ltd t/a CarLease UK, e-car lease, VanLease UK and School Minibus Leasing UK is a credit broker and not a lender and will introduce you to a limited number of finance providers which have been carefully selected by us - please note that we do not provide independent financial advice. The finance providers that we use may make payment to us if you elect to enter into an agreement with them. The amount we receive will affect what you pay for your vehicle. The commission received may or may not be capped in accordance with that finance company’s policy. We may also receive an extra amount based on how much business we provide to that finance company, the types of products you take from the finance company and the quality of our service. For Regulated Customers you can ask us about the payments we receive from the finance company so long as this is in good time before the agreement is made. Failure to maintain rentals may result in the vehicle being withdrawn (this may affect your credit).
All images on this website are for illustrative purposes only and may not reflect the actual vehicle which is delivered to you. All prices shown are subject to change at any time and are subject to credit status and vehicle availability.
FRN 706617 | BVRLA Membership No. 1471 | Data Protection Reg. ZA088399 | VAT No. 200422089 | Registered in England 09312506
Our Registered Office - Kings Business Centre, Warrington Road, Leigh, Greater Manchester, WN7 3XG
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CarLease (UK) Ltd work alongside the select finance companies:
CarLease (UK) Ltd have a partnership and affiliation with: