Car Leasing for Students
Desperate for something to impress the mates? Or just want a set of wheels that'll get you to that 9am lecture?
Then car leasing is here to save the day.
And yes, it's affordable enough that you won't have to live off Pot Noodles.
We'll be telling you why car leasing for students is a good choice, and how it works.
Can I Lease a Car If I'm a Student?
Absolutely you can.
As long as you have the money to pay for a car lease, then there's no reason why you can't get one.
You do need to be at least 18 years old though, so depending on what month you were born (hopefully you know the answer!), that would rule you out if you're 17 and just starting college or university.
Secondly, you need to have a full UK driving licence. Which is a bit obvious . . . but it does mean that you can't get a lease agreement with, say, just a provisional license. (And there's plenty of 18-year-olds who would try.)
And finally, you need to pass a credit check. As long as the above conditions are met, this is the only thing which could possibly stop you from getting a lease, but having a guarantor is a good solution (more on that later).
What Other Costs Are There?
Of course, having the money (or the student loan) to afford a lease car is all well and dandy. But that of course means you've now got less money for other things.
Things like . . . clubbing, food, music concerts, and more clubbing.
So just make sure that by leasing a car, you aren't stretching your finances elsewhere.
Fortunately for you, breakdown cover, road tax and the full manufacturer's warranty are all included when you lease a car through LeaseLoco.
However, you will have to pay up for the following costs yourself:
Fuel - Whether it's petrol, diesel, or electricity (yes, we also offer hybrid and electric cars), we all need it.
Servicing, MOT and other motoring costs - Because something could go wrong with your car after the warranty expires.
Insurance - A real biggy, as insurers aren't exactly known for dishing out generous packages to young drivers. Luckily, there are a number of things you can do to make your car insurance cheaper.
Can I Lease a Car If I Am an International Student?
This might be a little bit more difficult.
If you're an international student, you're required to be 18 and have a UK driver’s licence and a UK bank account to qualify for car leasing.
So if you've just arrived in the UK, chances are you aren't going to have at least one of those.
But if you're interested, it usually takes around 40 hours for the average learner to become good enough to pass their driving test. So not too long?
Do You Need a Job to Get Car Finance?
Not necessarily.
If you're living at home and are commuting into campus, then you'll probably have plenty of student loan/bursary money left to spare.
But even if you're living in halls or private student accommodation, you still might not need a job as long as you manage your finances carefully.
Basically, most lenders want to know that you have a steady stream of income, whether that be from student loans, a job, or both.
Do You Need a Deposit?
The good news is that you don't.
After all, how many students have access to a massive lump sum of cash?
That's why we offer you a large variety of car leasing deals with no deposit, where the only upfront costs will be the monthly payment and the broker arrangement fee.
And whilst not putting down a deposit will make your fixed monthly payments higher, it doesn't change the overall cost of your lease agreement. It just means it's more spread out.
Are There Options for Students With Bad Credit?
At LeaseLoco, we understand the stress that can come with a low credit score.
Or if you're a young student, you might even have no credit history, which can be just as bad in the eyes of lenders.
Unfortunately, we don't have any deals supplied to us that cater specifically to bad credit history, but that doesn't necessarily mean a lease is out of the question.
If you spot a deal that you really like, it's still always best to have an open and honest chat with our leasing partners to see if there's anything they can possibly do for you. Especially if you know that your credit score is bad but not awful.
Will I Need a Guarantor?
Yep, as guarantor can be a good way to counter bad credit.
Because you’re young and likely don’t have much of a credit score, the car finance house will want some reassurance that you'll pay what you say you're going to pay.
They are there as 'insurance' in case you go bust and can no longer afford to make the lease payments.
In that scenario, it's your guarantor who steps up and pays for you.
Chances are that you'll be asked to supply details of a guarantor, so best having one in mind beforehand.
Who Can Be a Guarantor?
A friend or a family member.
Your guarantor has to be someone who:
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Is aged 21 or above
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Is not financially linked to you (e.g. a second name on a bank account)
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Has a good credit score
Choosing the Right Vehicle
You're a student . . . don't shoot for the stars here.
Let's face it, when it comes to the student demographic, you're probably among the minority to even contemplate have a car.
So a small, dependable one will do just fine. Don't stretch your budget too far.
You probably want something that's light, inexpensive, and with plenty of manoeuvrability for getting into those tight parking spots.
Plus, these sorts of cars tend to have low insurance and servicing costs, which means you won't be spending bucket-loads on those either.
Think a Volkswagen Golf, a Toyota Aygo or a Vauxhall Corsa. Thankfully, we've got plenty of deals on those.
And for all the cars with cheap monthly payments, why not take a look at our car lease deals under £200.
What Are the Advantages of Car Leasing for Students?
Apart from having a shiny new car that's going to impress all your student friends . . .
Affordable Monthly Payments
PCP might sometimes work out better for a used car, but if you're after a new model, leasing is definitely the way to go for affordability.
That's because you're only paying for the car's expected depreciation (how much it loses value) during the lease term, and not the car's total value, as with PCP.
No Long-Term Commitment
Yep, car leasing is essentially a rental agreement, so unlike with car finance or buying outright, there's no hassle with balloon payments or having to sell your car on.
It's simply a case of drive it and go.
Lower Maintenance Costs
A lease car is a brand new car, and new cars come with a manufacturer's warranty, meaning you're covered for most repair and maintenance costs during the first part or even the whole of your lease. (The warranty can last from as little as a few months to as long as a few years.)
So . . . no unexpected repair costs for you.
Plus, road tax is also thrown in as part of the lease as well – yet another cost you don't have to worry about.
Lower Monthly Payments
Lower than PCP, that is.
Plus, the monthly rental payments are predictable and don't change, meaning you can budget accordingly.
Summary
So yes, car leasing for students isn't just a possibility, it's also often a better choice compared to PCP and buying a car outright, providing you with low and predictable monthly payments.
A quality start to your driving career.
FAQs
Can students get a car on lease?
Yes, as long as you're over 18, have a full UK driving license and can afford the monthly payments for a lease agreement, you're good to go.
Can you lease a car as a learner?
Usually not, no. The vast majority of car finance companies require you to be in possession of a full UK driving licence as a precondition to leasing a car.