So you’re in need of a new car and after extensive research, you have decided to lease a car based on the many benefits of leasing.
When embarking on a car leasing journey, the first step would be to identify whether you are eligible for car finance.
The decision of approval is based on a number of things including: financial background, residency, credit score etc. Below we explain some of the factors that may contribute towards being accepted or being declined by a finance provider.
Before leasing, a credit check is required in order to determine your credit score. A person’s credit is used to determine whether they are accepted or declined, the amount they are approved for and the interest rate.
Having a high credit score would increase the chances of approval as you are deemed as less of a risk to a lender, as opposed to someone with a low credit score.
There is no universal scale which can measure what is categorised as a poor or bad credit score. However, credit check sites such as Experian can give you an idea of what your credit score is and can mean to finance companies.
Factors that affect your credit score:
Number of accounts
CCJs, IVAs and bankruptcy
Not having any credit history or credit records
How long you have had your credit accounts
As we are based in Blackburn (Lancashire) and deliver throughout the UK, we do work with customers all across the country, including Scotland, Northern Ireland and Isle of Man. Unfortunately, we do not work with anyone residing outside the United Kingdom.
We do also work with funders which help foreign national customers with under three years of UK residency. Foreign nationals in the UK usually have little or no voters roll or credit information.
As a result, their application needs to be assessed via alternative means. That’s why the following proofs are requested: a valid proof of current address within the last three months, a copy of the applicant's employment contract (including confirmation of annual salary) and a copy of the customer’s work permit or UK visa (if applicable).
Other Factors To Consider
Age: Car leasing and finance are financial agreements. Therefore, at Hippo Leasing our minimum age requirement to sign up to an agreement is 18. However, as many young people at the age of 18 have no or few financial commitments, it may be difficult for finance providers to determine whether you are likely to make repayments or not. There is no upper age requirement when leasing a car.
Income: Affordability is another key aspect considered by a lender. Your income would tell a finance company whether you are likely to afford to make repayments each month based on your monthly salary.
Job Stability: A stable employment history shows that your income is steady and it is unlikely you will have issues keeping up with payments during your lease agreement length due to the loss of a job.
For full confirmation of your car leasing eligibility, the first step would be to speak to one of our Account Managers by enquiring here. Hippo Leasing works with up to 10 different finance providers, from Barclays to MoneyBarn, to offer you the best chance of being approved for a car lease.