Who Can Lease a Car?
Car leasing is available to a wide range of UK drivers, from individuals looking for their next personal car to sole traders and businesses arranging vehicles for work. However, applying for a lease doesn't automatically mean you'll be accepted. Leasing is a form of vehicle finance, so you'll normally need to meet the finance provider's eligibility and credit requirements and demonstrate that the monthly payments are affordable.
If you're new to leasing, the process can seem unfamiliar. Below, we explain who can apply for a car lease, the difference between personal and business leasing and some of the things to consider before choosing your first agreement.
What Do You Need to Lease a Car?
Typically, applicants will need to:
Be at least 18 years old
Hold a valid UK driving licence
Be a UK resident
Provide proof of identity and address
Provide employment or income information
Have a UK bank account
Pass the finance provider's credit and affordability checks
Exact requirements can vary between finance providers, so meeting these basic criteria doesn't guarantee that an application will be accepted.
Do You Need a Good Credit Score to Lease a Car?
Every lease contract is a financial agreement between you, the customer and a funding provider. Therefore, this will usually involve a credit check. There isn't a magic credit score - each will assess based on their own lending criteria and circumstances.
If you haven't had the chance to build up an extensive credit history, or have had financial difficulties in the past, read our guide on leasing with bad credit for more information on how credit history affects an application, and what you can do about this.
Can You Lease a Car Personally?
Yes. One of the most popular methods, and the primary way we deal with personal customer is through Personal Contract Hire, or 'PCH'. This is good for:
Want a new car every few years
Prefer predictable monthly payments
Don't want to worry about selling the vehicle afterwards
Don't necessarily want to own their next car
There's an initial rental cost (and upfront payment) followed by an agreed monthly cost based on your vehicle choice and the amount of annual mileage you will cover. Our full guide to leasing explains the process.
Can a Business Lease a Car?
Yes, subject to finance approval. Businesses may lease vehicles for:
Employees
Directors
Sales teams
Pool cars
General company use
At LeaseCar, we provide a range of vans and commercial vehicles that also suit sole traders and limited companies. See our guide on business leasing for more information.
Can a First-Time Driver Lease a Car?
Being a new driver doesn't automatically prevent you from leasing a car. However, first-time drivers should consider the total cost of running the vehicle rather than the lease payment alone. Think about:
Insurance
Initial rental
Monthly rental
Fuel/charging
Maintenance
Agreed mileage
For a first-time driver, insurance is likely to be a major factor as this is usually considered to be a higher-risk group by vehicle insurers. However, LeaseCar can help make this more affordable with some lower cost leasing options.
Can You Lease a Car on a Smaller Budget?
Leasing isn't limited to premium or expensive vehicles. Monthly rentals vary considerably according to the model, contract length, mileage and initial rental, with deals available across a wide range of budgets.
LeaseCar offers a range of deals from our network of funding providers that allows access to a wide range of cars for under £200 a month.
Low initial rental lease deals
A larger initial rental will generally reduce subsequent monthly rentals, while a lower initial rental lets someone start a lease without committing as much money upfront.
Either option gives you some flexibility to drive a vehicle that meets your needs, depending on your budget restrictions.
Can I Lease if I'm Changing From Car Ownership?
If you currently owns a car but don't want to replace it with another purchase, leasing provides:
No future resale
No depreciation uncertainty
Regular upgrade cycle
Fixed monthly rentals
Newer safety/technology
Leasing can give you a lower-cost way to drive a modern and highly-specified vehicle while you arrange for the resale of your old one.
Is Car Leasing Right for Everyone?
Not always. Leasing might not suit someone who:
Wants to own the car
Regularly covers unpredictable or extremely high mileage
Wants extensive vehicle modifications
Doesn't want a contractual commitment
Expects their circumstances to change significantly during the agreement
Conversely, it can work well for people who value:
Predictable payments
Driving a newer vehicle
Regular replacement
No resale process
Optional maintenance
If you are unsure, we encourage you to talk to our team and explain your requirements. We can then advise you on the best option.
What Happens After You're Accepted?
It's quite a simple process:
Choose your car
Select the model you are after or pick from our range of latest offers
Configure your lease
Specify the expected mileage, select any optional extras, including a maintenance package if you need one, and the number of months the lease runs for (usually 36, but there may be options)
Apply for finance
This will involve a credit check by the funding partner
Approval
All going well, approval of the agreement will be received
Confirmation
The order will be confirmed and you'll arrange your initial payment
Delivery
Your new car will be delivered to you, free of cost in the UK mainland
Monthly payments
You pay the agreed monthly amount for the term of your lease
Return the car at the end
See our guide on what happens at the end of your lease
What If I'm Still Unsure Whether I Can Lease?
Every customer's circumstances are different, particularly when it comes to budgets, mileage and how they intend to use their vehicle. If you're unsure which type of lease is suitable, our experienced team can talk through your requirements and explain the available options before you apply. At LeaseCar, we have nearly thirty years' experience in helping people get on the road. Contact us online or give our friendly team a call on 0344 745 1818.