Providing you are aged 18 or over and you have a full UK driving licence you can apply for a vehicle leasing agreement. You will also need to have a good to excellent credit score to be accepted for your finance application to lease a vehicle. If you have any questions regarding the best way to finance your new car, please call our team on 02392 245572 and they will be happy to advise you on all the options available.
To be able to lease a car or van with Fleet UK you will need to submit a finance application. The majority of our finance providers will want you to have a good to excellent credit score to accept your finance application.
The main issue for many young drivers is that they have little or no credit history, making it tricky to obtain finance. This is because finance providers prefer lending to established borrowers, as they can better assess the risk for paying back debt.
That said, acceptance criteria does vary from provider to provider and an application’s decision is not based solely on credit rating. For example, some finance providers may accept individuals with lower credit rating if they can prove that they can afford to pay the monthly payments and the initial payment/deposit and others may limit the pool of options available by removing more premium manufacturers.
Here are some suggestions for how you can build a good credit score:
If you have any questions or concerns, please call us on 02392 245572 and one of our account managers will be happy to assist you.
On rare occasions some finance providers allow you to apply for finance with a guarantor who becomes responsible for paying the finance should you fail to make payments. Usually, a guarantor will need to be a family member and have a strong personal credit history.
The simple answer is no. ‘Accommodation Finance’ is where another person looks to take out a lease agreement on behalf of someone else.
For example, this could include a parent looking to take out a lease for their son or daughter. While ‘Accommodation Finance’ is not illegal as such, it is strictly forbidden by finance providers as they are concerned they might not be able to retrieve the money they lent if there was a contract breach.
Also, not declaring that the person taking out the lease is not the main driver is illegal and both parties involved (the person applying for the finance and the person that they taking out the lease for) could be charged with fraud.
The minimum term for a Personal Contract Hire leasing term is 12 months although it’s more common for customers to take out a leasing term between 2 to 4 years. The maximum length of a contract is 5 years.
When you lease a car, the finance company generally requires an upfront payment.
This is known as an initial rental payment, or sometimes a deposit - but you don't get the money back, as it contributes towards the overall lease payment.
Usually, the bigger the initial rental you pay upfront, the lower your monthly instalments are. It depends on your preferences and budget, but most people prefer to do this.
The initial rental fee can be the equivalent of 3, 6 or 9 months of rental payments. The minimum amount is 1 month with a maximum initial rental payment of 12 months.
The initial rental fee is taken by direct debit payment, as it’s classed as your first payment. For example, a 36-month contract could be a 1-month initial rental payment, followed by a further 35 payments.
The processing fee is the broker fee charged by Fleet UK for our service and represents the costs incurred for arranging the sale, ordering the vehicle, arranging the finance and organising delivery of the vehicle.
Our processing fee is currently £234 inc VAT which is payable by debit or credit card or by BACs payment once your application for vehicle finance has been approved by the finance provider.
Once you’ve decided that Personal Contract Hire is right for you, then you will need to choose your car and the lease terms which includes: contract length (between 2 to 4 years), annual mileage allowance and the initial rental fee.
With Personal Contract Hire the length of the lease contract tends to be between 2 to 4 years.
If you need to end the lease earlier than the contracted time you will need to request an early termination. The exact amount of an early termination charge depends on several factors, including how long is left on your lease and the value of the vehicle at the time.
Mileage plays an important role in your lease agreement and during the leasing process, you will be asked to choose an annual mileage cap. This mileage cap is used to help determine the cost of your lease and is used to evaluate your vehicle on its return.
The higher the mileage cap the more expensive your contract will be and if you exceed your limit you will be charged potentially expensive excess fees. So, by being honest with your mileage you’re making sure you choose the cap that’s right for you and it reduces the likelihood that you exceed your cap.
We tend to see most drivers choosing an annual mileage of 8,000 or 10,000 miles. However, some motorists who only use their vehicle for mainly short trips or occasional use tend to choose mileage of 6,000 miles per year.
A good idea is to try and work out as best as you can how many miles you anticipate you might drive each month. Think about the regular journeys you might make to college, university, to work, to see friends and family etc and work out the mileage for each of those journeys, how often you’ll do those journeys each month and then multiply your ‘best guess monthly mileage’ by 12 to give yourself an approximate annual mileage.
It’s best to not underestimate the annual mileage as this could result in being charged for excess mileage. Although, there is a possibility your finance provider will allow you to increase the mileage allowance during your contract for a fee. Please see our excess mileage guide for further info.
As a young driver, you might not have much money to spend upfront on a vehicle, unless the bank of mum and dad can help out. This is where leasing is a great alternative to buying a vehicle. More young and new drivers are choosing to lease as opposed to buying a car because:
Unfortunately, our finance providers do not allow drivers under the age of 18 to apply for lease agreements. This is because vehicle leasing agreements are a type of credit and a person under the age of 18 is considered a young person and cannot be legally held to a contract.
However, once you are 18 years old, providing you hold a full UK driving licence, are afford the monthly payments have a good credit score, you can apply for a lease agreement.
Unfortunately, our finance providers will only accept credit applications from drivers who hold a full UK driving licence.
If you want to sell an existing vehicle to help fund your initial rental payment, please complete our part-exchange form so that we can provide you with a competitive quote for your vehicle.
You would need to request written permission from the finance provider in order to add a private number plate to your leased vehicle. If you have any further questions on the process, give our team a call on 02392 245572.
Because Personal Contract Hire leasing agreements are not meant to be broken, there can be expensive early-termination penalty fees.
Before you proceed, check what the costs would be from the financial provider and whether they will also accept your contract being ended early. Please note that early termination is at the discretion of the finance provider and not Fleet UK.
Fleet UK are both FCA and BVRLA approved which means you’re dealing with a reliable provider. Because we’re FCA regulated, you can take our FCA registered number of 682714 and check our status on the Financial Services Register.
The FCA is an important organisation because they work to protect consumer interests, maintain the integrity of the financial system and promote effective competition in the interests of consumers. All of which results in an improved and more reliable service for customers.
Leasing a vehicle through a BVRLA approved company is essential. This is because the BVRLA is an independent body that is responsible for ensuring vehicle leasing companies are responsible and provide excellent service to customers.
The BVRLA ensure that any customer who leases a vehicle short or long-term have the protection which comes with choosing a BVRLA approved broker.
Email : firstname.lastname@example.org
Telephone : 02392 245570
Company Address :
7 Stratfield Park
Fleet UK are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 682714
Registered in England & Wales with company number : 4018111 | Data Protection No : Z6393738 | VAT No : 755080825
Registered Office : 7 Stratfield Park, Elettra Avenue, Waterlooville, Hampshire PO7 7XN
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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