For young drivers, car leasing can look like a very attractive option. Instead of a banged up secondhand car, you could be driving a brand new model with all the latest features. Young drivers will certainly be excited by the prospect of smartphone connectivity, allowing them to listen to music and make calls without breaking the law. With higher safety ratings, lower fuel emissions and greater reliability, a new car can also be the more sensible option. On top of that, there is the added benefit of being able to change your car every few years. But can young drivers lease a car?
In short, yes. It is a bit more complicated for young drivers to secure a car leasing agreement but with some careful thought, it is certainly possible!
Car leasing is essentially a long-term car rental agreement that covers a fixed period of time. For a relatively low fixed monthly payment and initial deposit, you have full use of a brand new car. Once the contract has ended after a few years, you can either sign up to a new agreement for another model or simply walk away.
Car leasing is incredibly flexible and gives you a great deal of choice around the car make and model, technological features and colour.
When your personal contract is drawn up, it will take into account the amount of mileage that you expect to cover each year and how long you want the car for. These two factors will have a significant impact on your monthly payment amounts. The lower your mileage and the longer the lease period, the lower the monthly installments. Contained within the monthly payment is your road tax, breakdown cover and car warranty.
Before any financier gives you the go ahead to make a personal car leasing application, they’re going to want to run a credit check. This involves a thorough examination of your credit history. Unfortunately, most young people don’t have much of a credit history for a financier to look at and make a decision. In their eyes, a lack of a credit history is on par with a poor one, as each pose a certain level of risk. They can’t see much evidence that you will be able to consistently meet the monthly payments.
Fortunately, this problem can normally be solved through the use of a guarantor. A guarantor is somebody who formally agrees to make a payment should you miss one, giving the financier the security and reassurance that they’re looking for in applicants. For young drivers, their guarantor is most likely to be a parent, guardian, older sibling or even a work colleague. However, a guarantor can be anyone who you meets the following criteria:
- A minimum of 21 years old
- Strong credit history
In the long term, a car leasing agreement can actually be highly beneficial for your credit history. If you consistently make your payments, you will begin to build up an excellent credit history which can then make it easier to secure a mortgage or loan in future.
If you have any more questions about whether young drivers can lease a car, please do get in touch on 0203 854 0344 or request a free quote.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
0203 854 0344
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