Car leasing is a form of finance agreement, so it is not possible to lease a car without a credit search but it is possible to lease a car with bad credit.
Leasing a car entails a credit search, like all finance companies they are regulated by the financial conduct authority so must ensure that they comply with responsible lending.
It's not possible to pay the lease payments in advance without a credit search. A lease payment is calculated based on the bridging amount between the purchase price and the resale value at the end of the contract.
Mainstream lenders will decline a finance application that falls short of their lending criteria, the reason why your credit score is low or why your bank is overdrawn is not important to them, you can't appeal the decision and they wont change their mind.
A missed and late payment on your credit file will impact your credit score for a period of time, but a default of CCJ (County Court Judgment) will remain on your credit report for 6 years and whilst that remains on your report no Mainstream lender will consider your application.
There are specialist lenders where their business plan is focused on the subprime sector, so they have particular lending criteria to match their clientele.
A specialist lender will still run a credit search on you, as it's important to them that they completely understand your current position. If you're still in a poor financial position whereby you're struggling to meet repayments of existing agreements then they won't be able to assist due to responsible lending. However if you're able to demonstrate that your low credit score is due to historical issues that are no overcome we should be able to obtain a car lease for you.
What a specialist lender needs to see, is that the default of CCJ has since been settled, or there's a repayment plan in place and your bank statements will confirm proof of this repayment.
If you're involved in an IVA, you must seek permission from the company managing this IVA in order to attain additional lending. Permission to obtain funding for a car can usually be granted providing the car is necessary for commuting to work. The finance company will need an official letter confirming the amount the IVA company are happy for you to be committed to.
Any finance company that offers poor credit car leasing, will need to see evidence of the following:-
Sub prime lenders understand that you could encounter a blip in your life, whereby bills were temporarily unpaid, they need to see evidence that since that negative period that you're now in a different position and can demonstrate affordability.
As the risk is higher, the car lease rate that you're offered will be higher. The rate is based on your circumstances and the vehicle that you wish to lease. You can lease a car with bad credit between 2 and 5 years. We offer nearly new and ex demonstrators to lease.
To minimize frustration it's always best to tell us in advance the level of your report and the information that is contained there, so we place your application with the lender that is most likely to accept you.
Expect questions, a sub prime lender will see a default or late payments and will ask the circumstances at the time, so they can build a picture of how it happened. A redundancy, accident, poor health, lost contracts are all valid reasons as to why you encountered the issue, but ignoring your commitments to take a family holiday instead is not.
A lender must be confident that despite the fact that you've failed to pay in the past, that this won't happen again as there were exception valid circumstances that prevented you in the past from doing so.
Once all adverse information is removed from your credit report you'll then be able to apply for a cheap car lease through a prime lender.