Sub Prime car leasing
Anyone who watches the news or follows the finance markets over the last few years cant help but be aware of the term ‘Sub Prime’ and its associated meanings. It came to light during the mortgage crisis when everyone and sundry was spouting the term – usually directed at a particular demographic of the consumers looking for mortgage products. In effect the term relates a person who has fallen below the threshold required to be approved for ‘Prime’ credit and the related products and usually indicates that the applicant has suffered from failures to make financial obligations in the past. It has become very difficult to locate a finance company that will happily fund adverse risk customers because lending in general is all about perceived risk and if someone has failed finance agreements in the past or had a car taken off them for example then this will make the applicant less appealing – even at a higher monthly repayment rate. Thankfully here at MSG Cars we have access to the limited number of companies that are operating in the UK that will look past bad credit showing on the credit file and base their decision upon the current circumstances and not the past.
How does this relate to my search for a car lease deal though i hear you ask!
MSG Cars are one of the UK’s biggest brokerages and suppliers of Sub Prime car leasing and each month we help clients from all ends of the social spectrum get the approval that they seek. It might well be that a company car scheme has ended and attempts to secure adequate finance or a lease replacement has resulted in the company approached declining the deal or it may be the case that since taking out your last lease car you have perhaps had one or two late or missed payments – even on just a credit card. In the current climate most lenders are super cautious and so any possible perceived risk will ensure they would rather decline a deal that is borderline where in the past they would have taken the chance. The good news to those of you that have come to our website looking for a company that can assist in your new or used car search is that we are able to offer car leasing acceptance even if you have items including Bankruptcy, debt management plan, IVA, CCJ’s and even mortgage arrears on your file.
Sub Prime car lease Terms
With the type of car leasing that we can supply you will find that you will usually have a 4 year contract with all road tax included for the duration. You are able to select any car of your choice and we can even fund used models upto 6 years old providing that the car is what is called VAT qualifying. All leasing deals will need to have what is called a initial payment paid at the start of the agreement and this is set at a minimum of 4 x the monthly payment. There is a mileage allowance of 15,000 miles per year that is set and there is a pence per mile penalty in place if this is exceeded so please bare that in mind.
What do i need for a car leasing approval
The first stage in looking to secure sub prime car leasing is to complete the online application form and once this has been completed we will receive a copy and also an instant decision from the lender. Additional information is required before we can finalise any deal and you will usually be required to provide a clear copy of your drivers licence, passport and 2 months bank statements as a minimum. In can often be as simple as then selecting your new lease car either from a list that we provide or from choosing a qualifying car from your local dealership.
How does it work ? Is there no credit check?
Its often presumed that to get approved for sub prime car leasing the company approached will do no credit check as if they do surely they would just decline the application wont they? This commonly held myth is in fact false as any finance agreement will require a search on a persons credit file if not just to check their identification. With the types of finance companies that operate in the poor credit market all that happens is they their lending criteria isn’t as strict as with a high street bank or mainstream lease funder. The factors that they will be looking for include traceability through means such as the voters roll and previous financial products linked to the applicant at there address. This helps make sure that the person does actually live at the address that they have provided and is an anti fraud measure too. Other issues that the credit file will be checked for are related to the responsible lending guidelines in that no business would knowingly wish to put a client into a position where they will struggle to make repayments as all that will happen is that they will default and the car will be handed back or repossessed. If for example the credit file shows that a car finance or leasing vehicle had been taken off the applicant the previous month this would show that their current circumstances don’t support the proposal. The credit file is checked then to make sure that the customers current situation allows for the new car payment and that they are not likely to be overcommitted as a result.
