Bad Credit Car Leasing

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We could help you get car finance, even if you:

Have no deposit

Are in an IVA/DMP

Have a CCJ

Have previously been declared bankrupt

Leasing a car involves paying a monthly amount to have a new car for a period of around two to four years. It’s a cheap option of car finance because you are renting the car and not paying for its value or in the case of Personal Contract Purchase (PCP), the amount it will depreciate by.

However, leasing is better suited to those who have good credit, because lenders don’t want the risk.

For those with bad credit, it’s not all doom and gloom. There are other leasing-type options that are better suited to you.

Personal Contract Purchase (PCP)

PCP is a similar form of finance as leasing, you just pay the amount the car will depreciate by, with interest added. Another difference between the two is at the end of a PCP agreement, you have the option to buy the remaining balance on the car, also known as a balloon payment. If not, you just return the car.

If you have bad credit…

Then you may be accepted for PCP finance because interest is added to each monthly payment, meaning lenders can adjust the amount depending on how much of a risk you are. With bad credit, you’re likely to be subject to a higher interest rate.

Pros and Cons of PCP

PROS

Bad credit is accepted – many lenders would switch off at the mere whisper of ‘bad credit’ but PCP doesn’t allow bad credit to influence people’s car finance option, although interest is added accordingly to manage the risk for the lender

Fixed monthly payments – with a PCP finance deal, you will know how much you will need to pay each month and therefore, you can budget appropriately.

Flexibility – PCP allows you to have the choice to either keep the car at the end of the agreement or return it and walk away. Whereas when you lease the car, you always have to return it after a certain amount of time.

CONS

You don’t own the car – getting a car on a PCP deal means you don’t outrightly own it (unless you pay the balloon payment) and the amount you pay over the months could amount to more than the car would be if you bought it brand new.

Excess mileage charge – if you go over the mileage restriction on your PCP car then you will be charged in addition to your standard monthly repayments.


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Bad credit car leasing