credit rating for personal car leasing

ps10006

Hi all,

Do you have to have a tip top credit rating to be able to lease a car through personal contact hire?

I think that you do, because why would anyone trust someone with less than perfect credit with a brand new car, especially when no significant deposit is made.

My mates thinks that you dont, as you arnt technically 'buying' the car so it is always owned by them, coupled with the fact that manufacturers these days are desperate to sell brand new fleets as not many people can afford to buy outright.

InsideInsurance

You dont have to have tip top credit because they always own the asset.

A close friend who has generally OK credit but very high utilization & only making minimum payment were recently offered a personal lease for a £65,000 car. No footprint appeared on his credit file at all.

ps10006

Thanks. suprised at that. i always thought that leasing was for more succesful older people with great credit.

How olds your friend & do you know what provider he used?

My mates 22 years old by the way, reckons his credit isnt bad like but how good can it be at 22 years old.

InsideInsurance

He is 31 and it was with Mercedes-Benz own finance

ps10006

he will have years & years then of proof that he can cope with payments maybe.

Still, 22 years old is goin to get accepted to lease a £25,000 Audi, im skeptical.

InsideInsurance

Didnt say they'd be accepted, just that the threashold for being accepted is lower for something where there is a tangible asset that the lender holds the title for -v- an unsecured loan.

Certainly does have 9 years more records but certainly not all of those are good as he was unemployed for a year and lived on the credit cards with several late and over limit issues (though never defaults). Hence the high utilisation of his available credit.

As I said though, Merc didnt do a credit check, at least not any that ever appeared on Experian or Call Credit

ps10006

i suppose so, thanks for your answers mate. strange how they didnt do a credit check though.

Anyway, i will see next week when he applies for it i may have to eat my own words

nonnatus

I have quite a poor credit record, previous bankruptcy, can't get high street loans etc. Last week I was accepted for finance on a three year personal car lease.

This would suggest they accept just about anyone...:D

ps10006

hi mate. really thats great!, to be honest iv been looking into it and leasing doesnt seem as bad an idea as i thought. can i ask how old you are? and what company you used?