Back To All

INSIGHTS & GUIDES

Am I eligible for car finance?

To lease a vehicle, you must be 18 years or older, hold a full UK driving licence, have at least 3 years UK residency credit history and will need to undergo a credit check as part of the finance application process.


Is it easier to get approved for a lease or finance?

In short yes. It is easier because the amount of credit needed for approval is less so therefore has less impact on your overall credit limits. A Lease or Contract Hire application is based on the total amount on contract (the total of rental payments multiplied by the term) rather than the cost of the vehicle that you would see with a finance agreement I.E. you are borrowing less. For both you will need to pass credit checks that are underwritten by the finance providers underwriting teams.


We also get asked:


Is it better to finance or lease a car?

Cars are a depreciating asset meaning they loose value every month, day, mile! a lease or contract hire agreement lets you take all the benefits of owning a brand new car with a easy and affordable monthly rental solution - this is usually much cheaper than the anticipated depreciation of the car too! With a finance, purchase agreement or even loan you pay interest and also take on all of the risk of depreciation and agro of selling the vehicle when you are done with it. The interest added to finance or purchase agreements also mean they are more likely to be the expensive option by comparison too.


Is it easier to lease of finance a car with bad credit?

Bad Credit will always be a issue when gaining a credit approval. if you are aware that you have bad credit you should always seek advice on how to improve via Experian or other credit experts. However It can be easier to get a lease than finance because the amount of credit needed for approval is less so therefore has less impact on your overall credit limits. A Lease or Contract Hire application is based on the total amount on contract (the total of rental payments multiplied by the term) rather than the cost of the vehicle that you would see with a finance agreement I.E. you are borrowing less. For both you will need to pass credit checks that are underwritten by the finance providers underwriting teams.


Which is easier to get approved for, lease or finance?

A lease or contract hire agreement requires typically requires less borrowing than a finance or contract purchase agreement. A Lease or Contract Hire application is based on the total amount on contract (the total of rental payments multiplied by the term) rather than the cost of the vehicle that you would see with a finance agreement I.E. you are borrowing less. For both you will need to pass credit checks that are underwritten by the finance providers underwriting teams.


How can I increase my chances of being approved for car finance?

Most funders ask for a good to excellent credit score in order to be accepted for car leasing. A lender will look at factors such as your ability to make regular payments on time and any other debts you may have. So how do you get approved for car finance? Typically, the funder will look at: your marital status and number of dependents; they want a minimum of 3-5 years address history to verify your identity and look at your credit history; 3-5 years employment history to determine how your income and expenditure will evolve over the lease period; your bank details to see how you manage your accounts and ability to make payments on time; your monthly income and expenditure to determine your affordability as they also need to be seen to be a responsible lender. So, unless you can provide all the criteria above it is hard to get approved for car finance. To find your perfect deal go to our special offers page.


What happens if finance isn't approved?

If we receive a decline and you want to challenge it - we can! we can appeal a credit decline if we have good grounds to do so please see below requirements for an appeal:


Personalminimum we will need is 3x Months personal bank statements including any savings accounts + Full Experian credit report (Not Summary or Screen shot of score) + explanation from customer on email as to why they feel they require an appeal – it would be beneficial to also have a copy of latest P60 &/or Tax return too so we can check that income stated on application is the same as provided to HMRC.


Businessminimum we will need is 3x Months business bank statements including any overdraft facilities/details + Latest audited accounts and Management/draft accounts where necessary (accounts too old) + explanation from customer on email as to why they feel they require an appeal.


The finance company will come back with: a credit acceptance; or a request for further information to assess your application; or a credit decline. Due to data protection, we are given limited information on why the application was declined. It may be that you are at your credit limit so they will not offer you further credit. It could be that you have adverse credit, the best way to check this is to use a 3rd party like Experian, Equifax or TransUnion to assess your credit file. For example, using Experian a credit score of 881 or more is normally considered adequate to lease a vehicle.


Can I take out car finance if I already have a car on finance?

In short, the answer is yes. However, it will depend on the reasons why you want to take out another lease. It may be that your current car on finance is due to end and you want to look for your next vehicle and have seen a good special offer on our website that you want to take advantage of. You may be a business and need additional vehicles to add to your fleet. Alternatively, it could be that you just want a second car for whatever reason in which case you will need to pass the credit check which is based on affordability amongst other things. 


Can I finance a car with no job?

In order to take advantage of our cheap car finance deals you will need to undergo a credit check as part of the finance application process. Most funders will want your employment history for the last 3-5 years, they use this information to determine how your present income and expenditure is likely to evolve over the period of the lease and is used to ensure you are comfortably able to afford the finance deal for which you have applied. So how can I finance a car with not job? It all boils down to affordability, you will need to show how you can afford the initial and monthly payments.


Is it easier to get finance for a new or used car?

It makes sense for finance companies to try and convince you that new is best. A car loan is based on the value of the car, setting the value of a second-hand car is an imprecise science but with new cars the price is clear. And as a result, lenders know exactly how much of their money they can retrieve in case you should default. New cars also have a manufacture warranty typically for 3 years so if something should go wrong with the vehicle then most likely the cost to repair is covered by the manufacturer warranty.  Personal Contract Hire or Business Contract Hire is a cost-effective way to finance a new car. Check out our special offers for our best lease deals. 


How long does it take to get approved for car finance?

Once you have completed your finance application form, we submit this to the finance company who can take anywhere from a few hours to a few days to come back with a response. If for any reason you decide to increase the value of your car that you want to take out on finance then we will most likely have to submit a new application as you will be applying for additional credit.