Bad Credit Leasing
If you have a history of missed credit card payments, unpaid loans, mortgage debts, and even outstanding balances on other loans, then driving a brand new car of your dreams would be already be beyond your reach. For one, you would not be able to apply for a car loan anymore because of your bad credit history. And if you do get lucky enough to get approved for a car loan, without a doubt, you would have a ludicrously high interest rate slapping you in the face. Then if you decide to tackle on that high interest rate on a loan that would last you for five to ten (or more!) years of your life, you would also still have to factor in all of the expenses related to owning and using a car such as maintenance, repairs, insurance, and of course accidental allowances should you involve another car or person. Add to your existing loans, debts, and unpaid bills – would you be able to fit all of the monthly payments with what you are currently earning from your job? It is not always a good idea to actually purchase a car, especially if you do not have the financial freedom to do so. But even so, it is not impossible for you to actually drive a brand new car of your dreams because you still have the option of leasing a car with bad credit.
Bad Credit Rating
You are considered to have a bad credit rating if you have failed to make payments on your credit card bills, loan repayments, mortgage, and other loan payments you have to your name. Another cause for having a bad credit rating is that if you have not yet established a credit line for yourself, so you cannot prove if you are trustworthy enough to pay for such loans, leases, and monthly payments. Self-employed people would also have a hard time with their credit rating because most do not have a fixed monthly income that could actually prove that they are in good credit standing and earn enough each month to afford monthly payments and repayments. Worse cases of having bad credit rating are when you have county court judgment (CCJ) due to your failure to repay money that you owe, or if you are currently in an Individual Voluntary Agreement (IVA) or any form of debt management plan. The worst is that you have previously or currently been declared as bankrupt.
New Car Leasing
The good news for you is that even if you are dubbed with a bad credit rating, you would still be able to lease out a brand new car with makes ranging from Fiat, Hyundai, Mazda, Mini, Renault, Vauxhall, and even Peugeot. You could even have lease contract depending on the monthly budget you could afford whether if it is as small as £199 a month, or as much as £399 a month. Lease periods would be for a total of 3 years where you would have to pay for an initial payment larger than your monthly payments on your first month, and a fixed monthly payment in the succeeding 35 months. The initial payment would be the same depending on the car make and model that you would choose, but the monthly payments you would have to make would vary on the annual mileage that you would need when you lease it out. The best thing about it is that you would always have a brand new car leased out to you, so if you want to apply for a brand new lease when your existing one expires, you could actually try out a different car that you prefer.
Improve Your Credit Rating
You would have a 95% chance of getting approved for a car lease even if you have bad credit. If you do get approved, this is actually a great opportunity for you to be able to improve your credit rating. Even though you have reached the bottom of the pit with bankruptcy, you would still be able to bounce back and prove to the world that you can and are able to have a better grasp of your finances this time around. Just make sure to pay off your monthly lease payments in full and on time so that you would be able to build your credit rating from bad to good. With a good credit rating, you would be able to have better interest rates, and even have faster application processes in terms of getting a lease, or maybe even applying for loans. You do not need to skimp out on convenience, most especially for your family, just because you have a bad credit rating. Bringing your kids to school every day and helping your spouse with errands or grocery shopping is not beyond your reach anymore because you could do it with a brand new car you can drive all the while improving your bad credit rating.