So, you've just spotted your perfect lease deal and you're ready to drive off into the sunset.
But hang on. Wait just a second . . .
Before you even think about stepping into the driver's seat, you've got to make a car leasing application. And for that, you need the right documents and info.
Luckily, we're here to tell you what those are.
Who Is Eligible to Lease a Car?
Technically, if you're over the age of 18 then you're legally allowed to lease a brand new car. However, there's a few things that you'll need to have at hand, and you'll also need to pass a credit check as part of the application process (more on that in a bit).
Do I Have To Be in Full-Time Work to Lease?
Not necessarily.
Your income and finances will inevitably come into play as part of your car leasing application process, and that's what leasing providers are most concerned with. So you could still be in a comfortable financial position without being in full-time work.
For example, you could be extraordinarily well-off or have regular access to a comfortable pension pot (over 60s take note!). Remember, there's no upper age limit to car leasing.
And whether you're a student, a retiree or in part-time employment, there's usually going to be finance options available to you.
What Information Do I Need To Lease A Car?
Now onto the nitty gritty.
When applying for a lease agreement, you'll need to provide various bits of information. Cases may vary, but these usually consist of your:
Personal details – such as your name, date of birth, current and previous address, your marital status, etc.
Finance & bank details – including details for affordability information and account details for direct debit for monthly payments. Your monthly income is going to give the provider a good idea of your financial stability
Employment details – your current employment status, including contact details and company name, company registration details, etc, as well as your employment history (over the last three years at least)
What Documents Do I Need To Lease A Car?
Equally as important as that are the several documents that you'll need to take out a car lease.
These usually consist of:
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Proof of address – i.e. a bank statement, utility bill, etc
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Photographic ID – normally in the form of a passport or valid driving licence
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Signed finance agreement – you'll receive this once your lease contract has been confirmed, after which you'll sign and return it
Proof of Address Documents
As your proof of address, you can use any of the following documents, but it has to date from within the last 3 months:
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Utility bill (usually gas or electricity)
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Bank statements
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Council tax bill
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HMRC letter
Note: if the name and address on your proof of identity and your proof of address do not match, then your application may be automatically rejected.
Should all go well and your application is authorised, then additional checks or evidence may still be required of you, but that's not always the case.
Car Lease Eligibility Checker
Some leasing providers offer this tool on their website, the purpose being to help give you a better idea of your chances of being approved for a car lease.
A car lease eligibility checker helps you understand your finance costs and, more importantly, offers a way to do a soft check on your credit score without it being negatively affected (as opposed to a hard check).
What Documents Will Not Be Accepted As Proof of ID?
The following documents will NOT be accepted as proof of ID:
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Landline or mobile phone bills
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Card statements
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Insurance documents
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Water bills
Do You Need Car Insurance To Lease A Car?
Yep, having car insurance in place on your lease car is a must, even if you're not using it and leave it parked at home or on the street.
Luckily, your lease car always comes with road tax and the manufacturer's warranty included, but unfortunately insurance is something that you'll have to arrange yourself.
So once you've sealed the deal on your new lease car, it's vitally important to get the insurance sorted. The policy should start on or before the day that you receive your vehicle.
As an optional bonus, you can also add on gap insurance for your lease car in order to provide an additional safety net in the event that your vehicle gets stolen or written off.
Do I Need to Send Hard Copies of the Documents?
Not always, but it is preferred.
Exact processes may vary from leasing company to leasing company, but you're normally advised to provide proof of address and ID as hard copies as well as photocopies.
That being said, it might be possible to send through electronic copies of documents for your car lease application. These would normally be sent as scanned documents via email, and proof of ID would be used to verify the signature on your documents. (But again, if the signatures don't match, then you would be required to provide further proof, or else your application could be abandoned.)
What Credit Score Do I Need To Lease A Car?
When it comes to car leasing, a leasing or finance company generally looks for you to have a credit score rated 'good' or 'excellent'. That way, you'll have the best possible chance of being accepted for a car lease.
That being said, it isn't all that uncommon to be accepted for a lease with a lower credit rating. Besides, a certain type of finance company may specialise in offering solutions for those who have a poor credit score. So yes, it is still very possible to lease a car with bad credit.
If you aren't quite sure what your credit score actually is, then you can always check it through companies such as:
It might be a longshot, but depending on your luck, a finance provider will also accept what's called a guarantor car lease. What this means is that if you were suddenly unable to keep making the monthly payments, someone else (usually a relative or a family member) will 'guarantee' to keep paying them for you. A guarantor agreement gives the finance provider reassurance that the money is going to be paid.
Summary
So yes, there are a few bits and bobs that you need as part of the car leasing process, and whilst it might seem like a lot just to get your hands on that pesky lease car, we promise it'll all be worth it in the end.
Happy driving.
FAQs
Do I need a V5 for a lease car?
No. The V5 document (or log book) is something that you will receive with the car.
What ID do I need to lease a car?
Proof of address and photographic proof of ID (e.g. passport or valid driving licence).
Can anyone get a lease car?
In theory, yes. So long as you have the right documents and credit score rating.
Do you need credit score for car lease?
Yes. Ideally, you'll need a good to excellent credit score, but it is still possible to lease a car with a poor credit rating.