Credit Score and Car Leasing

Jep1805

I would be grateful for input or advice on credit scores and leasing a car.

Basically I’ve worked very hard at getting my credit file all in order as I wish to buy my first home in the next 18 months. My Experian score is now 973/999 and Equifax is 507/ 600.

My current car lease is in my partners name and is due to go back in February so I will be getting my own new lease soon. I did apply for a good lease deal in September however my application was rejected.

The only credit I have is a credit card with £1500.00 outstanding on it, this is the only debt I have period. I did not do any other applications as I was worried multiple applications would hurt my score. I know for car finance and credit cards there are soft searches/pre approvals etc however I have not seen or read anything similar for car leasing. I do not wish to finance a car I only want a lease deal.

I need to secure a new lease by February but am worried if I make more applications I will be rejected again. I’m confused as to why I was rejected I did ask the company but they just advised I did not meet their criteria. My credit score on paper seems really good so would be grateful for any comments or assistance in obtaining a new car lease without fear of being rejected.

Thanks in advance.

[Deleted User]

Your score plays no part in the lending procedure.

Your credit history, accounts and conduct, income, other debt etc. do though.

bazzyb

You don’t say what the limit on your card is or how long you have held it. Regardless, from what you have posted it sounds like you have got what lenders would describe as a ‘thin’ credit file with just a single piece of credit on it.

If you have a long-standing bank account and are on the electoral roll it may help things but I would imagine you may find it difficult in getting a lease as you have no comparable borrowing (what is the value of the car you are looking to lease and what is your income?).

xlnc99

ive just been in the same situation but accepted with a crap credit score. I maybe able to help, which company did you use for the broker? what car and price did u go for and what terms?

Jep1805

I’ve had my credit card for around 14 Months and it has a limit of £2750.00. I’ve been with the same bank account my whole adult life around 13 years and I am on the electoral roll.

My basic salary is 28K however I have a good monthly bonus and in earn in excess of £600 Net bonus each month.

I don’t have a specific vehicle or lease at which I’m looking at. The lease I previously applied for was a Mercedes GLA £220.00 per month I think the vehicle was worth in region of 22k and from memory the lending company was Arval and the leasing company was AMT Auto just one I came across online.

Thank you in advance for any assistance I am most grateful.

Jep1805

It was AMT Auto, 3 year lease, £1300
Down payment ,£220 per month with 10,000 miles per annum. Thank you.

[Deleted User]

Your low limit, lack of history, existing debt and affordability on a large loan will all count against you in terms of risk.

Perhaps look at a cheaper option.

xlnc99

Jep1805 wrote: »

It was AMT Auto, 3 year lease, £1300
Down payment ,£220 per month with 10,000 miles per annum. Thank you.

that is very very strange! I was accepted for a far bigger deposit and far bigger monthly payment and my credit history is rubbish!

My suggestion is have a look at contract cars, gateway to lease and nationwide leasing. They tend to use finance companies with softer checks. They also have better deals

bazzyb

Deleted_User wrote: »

Your low limit, lack of history, existing debt and affordability on a large loan will all count against you in terms of risk.

Perhaps look at a cheaper option.

Agree with this, from the lender’s perspective there is no comparable borrowing, you want a £22k car and the only thing they have onto base their decision on is a low limit credit card that you’ve had for a year.

I think you’re going to struggle for a lease like this with any lender, you maybe need to build up a bit more if leasing is what you want to do in the future.

[Deleted User]

Do you NEED a £22k Merc that you won’t own at the end of the payments?

Jep1805

I do not need, but much prefer a lease, I have had both lease cars and bought vehicles in the past. Leasing is the better option for me less maintaince etc and I can easily afford the payments.

I just would prefer not to make other applications if it will hinder my credit profile if I’m likely to be unaccepted. Could it be worth calling prospective companies first and ask for their criteria?

Thank you again.