The Complete Car Leasing Eligibility Guide

Find out if you are eligible for a car lease deal

Car leasing is a brilliant method of financing your latest vehicle. It allows you to drive away one of the latest cars on the market at an affordable monthly rate. 

At Carparison, we pride ourselves on making the entire process as easy and stress-free as possible for you.

However, there are some things to consider before you apply to lease your next car. 

We have compiled a comprehensive eligibility guide to answer some important questions about all things car leasing. 

What is car leasing? 

Car leasing is like renting a property. You have access to a car for a set period, with fixed terms and fixed monthly payments. You will never get the chance to buy the car outright during your lease term and you will simply hand back the keys at the end of the deal. 

Rather than buying a car outright, you are paying the deprecation on the vehicle for the duration of your term. Leasing a great method to finance your next car if you are looking to get behind the wheels of a new vehicle for a fraction of the cost. 

Am I eligible to lease a car?

To be eligible for a lease, there are a few things you will need to do beforehand. You will need to be 18 years or older to lease a car. All lease deals will be subject to a credit rating check and while a bad credit rating does not necessarily rule out leasing – more on that later – you will also need to provide sufficient proof of income. 

Browse our latest offers for personal car lease deals and business contract hire today

What details will I need to provide when leasing a car? 

When you apply to lease your next car, you will be asked to provide various pieces of information about yourself during what is called a finance application. This helps the lease funder obtain a clear picture of yourself and whether you can afford to meet the fixed monthly payments. Photo identification will be required for all personal leases and most business leases, while some of the other details could include the following: 

• Age
• Driving License
• Proof of affordability
• Credit rating
• Country of birth
• Two contact numbers
• Email address
• Three years of residential history
• Marital status
• Number of dependents
• Annual salary
• Bank details

What details do I need to provide when taking out a business lease deal?

If you would like to take advantage of our latest business lease deals, you will need to provide extra details about the business itself. The business applications are very similar to the ones for personal lease deals, but on top of that, you may also need to provide some of the following:

• Job title
• Company website, postal address and property status
• Business sector
• Filed accounts
• Company registration number
• Year the business was established
• Company VAT number
• Bank details
• Personal details of at least one business owner/director, including three years of residential history

Can I lease a car with a bad credit score? 

You may still be able to lease a car if you have a bad credit rating, it just may not be as straightforward as you would have hoped. A good credit rating will make the process rather simple, but you can still lease a car. 

We partner with a selection of trusted funding bodies to offer a range of lease prices. Therefore, if the funder of the car lease deal you have chosen declines your application we can provide alternative funding partners. Changing the funder may increase the cost available on the lease deal, however, so you will always have the choice to withdraw your application instead. 

Taking out a lease through an alternative funder can help improve your credit score for the future too.

How can I improve my credit score? 

With such a wide range of lease funders available, a bad credit rating is not a deal breaker, but there are some things you can do to improve your score over time. Paying any bills you have, like a mobile phone or broadband, on time will always help. 

Remaining at one address of residence for a prolonged period will help your case too, rather than moving regularly. You could also consider setting up a joint account alongside your partner to improve your credit rating or register on the electoral roll.

What is a guarantor? 

A guarantor is like a safety net for the lease funder. They will ask for a third party to sign your lease agreement and they will be liable for the payments if you were unable to pay at any point in the future. While it may sound like the lease funder does not trust you, these can be very common, especially among younger leasers who simply have not built up the necessary credit rating yet.

A guarantor can be anyone over the age of 21 with a good credit score. They are not to be financially linked to you and will traditionally be a parent, guardian or family member.

Can I lease a car without a full driving license? 

Yes! You can apply for a car lease application with a provisional driving license, as you will need to provide proof of identification. If you plan on driving the vehicle on your own, then you will be required to hold a full driving license and you will need to be insured accordingly.

Can I lease a car without a job? 

You can lease a car without being in employment, yes. Just like having a bad credit score though, you may have to do some extra leg work beforehand. Without a fixed income, a lease funder may ask for extra proof of income – after all, they need to know how you intend to fund the car. 

Of course, your annual salary is not the only way you can pay for a lease car. You may be retired and plan to use savings to pay for your new vehicle but be prepared that you may need to provide further evidence to support your application.

In some instances, we may not proceed with a lease application if you do not have a job, depending on affordability. We have a duty of care to make sure the products we provide are suitable for your personal circumstances and we will not complete a lease if we feel we are being irresponsible to you. 

How much can I afford to pay a month? 

When leasing a car, you must consider how much is an affordable amount for you to pay each month when you take into account your other financial responsibilities. Leasing a car can open a new window of opportunities, so it can be easy to get carried away.

However, it is important to remember that you still need to maintain the car with scheduled services and MOTs (if you do not take out an additional maintenance package), as well as the day-to-day running of the car. 

It is a very individual question, and it is one that only you know once you consider all your outgoings. Leasing is a fantastic way to benefit from hassle-free driving, but only when done responsibly, so you must make sure you are agreeing to a fixed monthly payment that you can afford. 

If you would like more information on car leasing, our latest offers and up-to-date industry news, you can sign up for our Carparison newsletter.