What is Non-Status Car Leasing?
Non-status car leasing is for those individuals or companies that don’t fit into standard criteria for credit assessments or checks, this could be because of the following:
Business
- New Business Startup
- Overseas Parent Company
- Negative Shareholder Funds
- Previous Director Failures
- County Court Judgements (CCJ)
- Missed Payments
- Voluntary Arrangements
Personal
- Expat or Overseas Visitor
- No UK Credit History
- Disquaified Director
- Discharged Bankrupt
- Late or Missed Payments
- County Court Judgements (CCJ)
- Individual Voluntary Arrangement (IVA)
Overview of Non-Status Car Leasing
Businesses and Private individuals can increasingly find themselves unable to obtain credit for Contract Hire, Leasing or even Hire Purchase.
This can be down to a number of reasons, including New Start Up Business with no trading results, a company established within 2 years with poor trading figures due to a business startup’s, CCJ’s or adverse credit. More recently, it can be down to taking a Covid-19 Bounce Back Loan.
Major leasing companies and funders have very strict criteria, there was a time when these big companies would accept just about anyone or anything, but they got stung with massive write off’s and vehicle repossessions. They now like to see positive balance sheets, 3 years worth of payments made on time or even a high credit score that even some millionaires fail to have.
Here at Cocoon Vehicles we have been helping Non Status customers since 2007, utilising our Short-Term Car Lease fleet. This way we can help you stay mobile and get to your day to day job to earn money or as a new business its vitally important to have a reliable and smart vehicle to give the right impression to your new customers.
Cocoon Vehicles does have the following criteria for Non-Status Customers:
Non-Status Private Individual Criteria:
- Driving Licence in current address
- 3 years or more Address History
- 3 years or more Employment History
- Proof of address eg. Utility Bill dated within the last 3 months
- Wage Slip clearly showing income
- Bank Statements clearly showing income and expenditure
- SA302 (Where Applicable)
Non-Status Private Individual Criteria:
- Directors Driving Licence in current address
- Directors Proof of address eg. Utility Bill dated within the last 3 months
- Business Bank Statements (May request 1-12 months)
- Management Accounts (On Request)
- Directors Guarantee Availability(If Required)
- Details of Website
- Previous or other company appointments (If Required)
No, we do not offer no credit check car leasing. However, if you make sure that you tell us that you want a non-status car lease then we have specialist underwriters who look at all applicants on a case-by-case basis. They need to show affordability and stability.
A credit check is run for both personal and business users. When a business credit check is being done, the Directors of the business will also have checks carried out.
We can normally help in most circumstances, whether it has been a change of employment, recent divorce that has scuppered credit or a few missed payments. So long as we can see that you can afford the car the answer could be yes!
The rates may differ from those advertised but generally, if we feel the risk is higher, we will ask for a larger security deposit. We must make you aware, that failure to pay for the vehicle will result in termination of the contract. If a Direct Debit bounces and it is not settled within 48 hours, we will arrange collection of the vehicle and you will be billed accordingly.
What cars are available on non-status car leasing?
This all depends on the Underwriters, sometimes all of the short term car leases would be available, sometimes only a small selection will be applicable. They will usually give you a reference number, which you can check against the individual car offers to see if you are eligible.
What terms will I be offered?
The advertised monthly rate of our short-term car leases for non0status customers will never change, however, our underwriters may offer alternative temrs to get a vehicle from ourselves, this could include:
- Higher documentation fee
- Higher initial rental
- Terminal Pause agreement
- Refundable Deposit or Bond
- Guarantee and/or indemnity
- Charge or debenture on property
- Or a combination of a few of the above.
.
The terms will be laid out clearly once the acceptance has come through and you are not obliged in anyway to accept this.
Will I get a credit limit?
Yes, our underwriters will set credit limits for all customers be it non-status or prime.
The credit limit is set by the underwriters and is determined from the affordability and stability reports along with your current credit files from the credit reference agencies.
More Information
You are more than welcome to call our team to find out more about Non-Status Leasing. Please call the team on 01332 290173 or complete the form below. Click on the links below to find out more about the individual products we offer on short term car leasing.
