Car leasing is a complex issue and understanding it is the key to being approved. For you to lease a car, you need to understand that every aspect of the leasing process is variable. Each part affects each of the other parts. That could determine whether you are approved and what you will have to pay as a deposit, what monthly payments you will be paying or what percentage of interest you will pay annually.
There is a selection of essentials that cover all lenders across the board. You must be 17-years-old and above. You must hold a form of the UK driving licence whether that be a valid provisional or full driving licence. The third essential is that you must have been a resident in the UK for at least three years. These are part of the essential criteria, so if you do not meet these requirements, you will be automatically rejected.
Ensure you can pay
The priority of a lender is that you’re able to repay the monthly payments. This means that you must be able to prove you have enough income, whether that be from employment, benefits or pension to afford the monthly payments. If you cannot prove this, you will likely be rejected.
This includes if you are on a high income, but also have high monthly outgoings such as mortgages and so on. If you do not have the required spare monthly funds available, you will be rejected. This is the most important aspect of whether you will be authorised because if you can pay the monthly payments, deposit and interest, then you will likely be accepted.
Credit score is important
The other important factor when it comes to being accepted for car leasing is your credit history. The better your credit score, the most likely you are to be accepted for car leasing. This means that you should aim to pay off any debt or credit regularly and on time to prove that you are on top of your finances. Factors that lower your credit score include regularly missed payments and bankruptcy.
If you do have a bad credit score, there are lenders who are willing to support those with bad credit to get a car. If you are accepted for a bad credit leasing agreement, the cost will be higher than normal leasing. You will have to pay a larger deposit with higher monthly payments and the interest on those payments will be higher. This is to cover the risk of accepting you by the lender.
There are a variety of ways you can improve your credit score in both the long term and in the short term. When you are confident you are improving your credit score, make an attempt to get accepted.
Don’t shop for a car, but for a lease
You may be interested in a certain car and that is your main focus. However, depending upon its age, price and other factors, you may not be able to get that car on an affordable lease. Our staff will be able to find you the best leasing and PCP finance deal that would suit what you can afford.
If the car you want is beyond your financial reach, we can find you a similar car that suits your needs whether it be for your family or just for the enjoyment of driving. Aim to find a leasing deal you can afford with a car that suits your requirements rather than aiming for a specific make and model.