Vehicle leasing can be an attractive alternative to buying one outright. You get to drive a brand new car, a van or a pickup truck for a fixed period of time, then return it at the end of the agreement and choose another one if you like. The convenience of leasing makes it a popular choice for businesses across the UK, especially when it comes to commercial vans and company cars.
Business vehicle leasing eligibility criteria
For businesses looking for an affordable, hassle-free commercial van or business car solution, leasing is a viable option. Car and van leasing is available to a variety of UK businesses, whether they are start-ups, sole traders, established corporations, or companies with multiple offices.
Is there a minimum trading time required to lease a van for business?
Leases for business vehicles are not subject to minimum trading requirements. However, newly established businesses typically struggle to obtain finance due to a lack of credit history. There is a solution for this problem called the director's guarantee. This is where the director of the company takes responsibility for the monthly rentals (payments) if the company is unable to pay them. The director in this situation will have to go through a similar process as if they were leasing a personal car, even though the lease agreement will be in a company's name. This is to ensure the director is creditworthy and, therefore, able to pay if the business fails.
Is there a requirement for the business to be VAT registered in order to lease a van?
VAT registration is not mandatory for business vehicle leasing. There are various options for businesses that do not register for VAT to lease a van, a car, and a pick-up truck. We will advise you of the most suitable lease product for your circumstances and needs.
Information required to lease a company car, a van or a pickup
The most common information a UK vehicle leasing company asks for is:
- Details about the business, like name, address, company registration number, and revenue
- Information about company directors, such as their full name, date of birth, and marital status
- Business bank details, such as account numbers, sort codes and bank names
- New businesses may also be asked for additional information, such as:
- Bank statements and/or audited accounts for at least three months
- Information about management accounts
- Director's guarantee (as explained above)
Personal leasing eligibility criteria
Not everyone qualifies to lease a car. As car lease is a loan agreement between you (the lessee) and the finance provider (lessor) funding the deal, you'll need to provide some personal and financial information before you can qualify. Leasing providers will not use this information for anything other than to determine your eligibility to lease.
The following criteria should be met if you want to lease a personal car:
- You’re at least 18 years old
- You have a full valid UK driving licence
- You have a good to excellent credit score
What information is needed to lease a car?
When setting up a personal car lease, we will need the following information:
- Date of birth
- Contact details (phone number and email address)
- Five years of address history
- Marital status
- Number of dependents
- Employment details
- Bank details (name of bank, sort code, account number)
- Income and expenditure details
- Photocopy of your driving licence card
As part of our vehicle leasing process, we verify your eligibility for vehicle finance so you can take advantage of our excellent car and van lease deals. Using our expertise, we can assist you in choosing the right vehicle finance option for you. We are confident that we can find the right lease product for your unique needs.
If you have questions about vehicle leasing, whether it's a personal lease or business lease, car lease, van lease or pickup truck lease, you might find the answer in our FAQs section. Alternatively, call us on 01424 863 456, use our contact form or our online chat.