The current financial crisis that is affecting almost the whole of the West is making life difficult for everyone. Getting credit for car leasing during the UK credit crunch gets more difficult every day. At one time lenders seemed to be falling over themselves to finance and fund cars on contract hire and leasing. If it is guaranteed car finance that you are after then the lender will want a number of questions satisfactorily answered before any arrangements for the finance can proceed.
In the current financial crisis the vast majority of UK lending agencies will want to do a thorough credit check before they will agree the finance. If you have ever had financial troubles regarding credit card payments or mortgage payments then these could adversely affect your credit rating and your chance of getting a car. In the UK companies will pass on your details to a credit agency when you apply for finance and the potential lender can ask to see your credit history. [more]
If you intent to apply for a car leasing then it might be worth your while to check your credit rating first, nowadays you can get such a report online. If you have got a black mark, even though you may have since cleared the debt, then it is worth contacting the company in question and asking them to alter their entry on the report. It could save you a lot of money in future payments.
You may need to produce copies of your bank statements for the last six months to show to the potential lender, who will be looking for interest charges and unauthorised overdrafts. They`ll also be looking at when money comes into your account and at your spending habits. Another area that potential lenders will want information on, is your work history for the last two or three years – this is to give them some assurance that you will be able to pay back any money they will lend you. If these things go through satisfactorily then you stand a good chance of getting a car finance, even in the credit crunch.
A steady income is a must when you make an application to borrow money and financiers are more likely to be well disposed to you if you have been in the same job for two years or more. If you do have an adverse credit rating then you might be required to put down a larger deposit. When you do this it can increase your chances of being approved for a car leasing.
This advice is general, it may apply in many instances but in the final analysis each request credit is treated on its own merits. Once you have applied for credit and been given the finance then you need to think about car insurance. There are plenty of insurance companies in the UK, which means they are quite competitive and it might be difficult getting premiums at a price you want. Nonetheless, when you take delivery of a car then the next thing you need to think about is car insurance.