Bad credit car leasing vs car finance
Many of those who consider bad credit car leasing do so because they may have been refused car finance elsewhere in the past. However, specialist bad credit car finance providers such as Red Potato will still consider your car finance application even if you:
- Have no deposit
- Are in a Debt Management Plan (DMP), Trust Deed or Individual Voluntary Arrangement (IVA)
- Have a County Court Judgement (CCJ)
- Previously have been declared bankrupt
- Are self-employed
Car finance options
It’s important to weigh up all your options for purchasing a car and make the right decision for you. Bad credit car leasing may look attractive in the short term as monthly payments are typically lower than a finance agreement. However, if you have a history of bad credit, car leasing may not be the best option for you. One reason for this is that taking out a lease on a car won’t allow you to own the vehicle. Bad credit car finance could help to improve a poor credit rating, potentially making finance options cheaper for you in the future.
- Leasing typically has lower monthly repayments than hire purchase
- There are often strict mileage restrictions when leasing
- With leasing, you do not own the vehicle at the end of the term unless your agreement allows for a lump sum balloon payment to be made to buy the vehicle.
Applying for finance with bad credit
We specialise in car finance for those with a bad credit history and base our lending decisions on your current circumstances and your ability to repay the loan. As with all other finance companies, we can’t guarantee car finance; however, we can provide you with a quick finance decision once you have provided all the required information.
Bad credit car dealer
Sourcing a reputable car dealer is of even higher importance when you have a history of bad credit. We can help source your ideal car whatever your budget, with more than 4,000 affordable used cars available from dealers nationwide.
Otherwise, if you have already found a car we can still help you with affordable bad credit car finance.