Is there an age limit to lease a car?
The simple answer to the question as to whether or not there is an age limit on taking out a vehicle leasing contract with Nationwide Vehicle Contracts is both "Yes" and "No".
"No" when it comes to the maximum age you can be, but "Yes" to the minimum age.
For those fortunate to be as young as many of us want to be again, you must be at least 18 years of age, have a full UK driving licence, have a good to excellent credit score and can afford the monthly rentals, to lease a vehicle with Nationwide Vehicle Contracts.
Legally, you can start driving a car at the age of 17 (and can apply for a provisional driving licence when you are 15 years and 9 months old), but you must be 18 to take out a finance agreement.
The biggest issue for many young drivers relates to the necessary credit checks that are required in order to be approved for vehicle finance. Many young leasers have little to no credit history, making it difficult to obtain finance. It is worth pointing out that while no lender uses your credit score alone to approve or decline you for finance, many other factors come into play such as your ability to make regular payments on time and any other debts you may have.
It is also forbidden for someone to take out a lease agreement on behalf of someone else, such as a parent leasing a car for their 18 year-old child to drive. This is called Accommodation Finance and, although taking out the finance is NOT illegal, NOT declaring that the person taking out the lease is not the main driver IS, with a fraud charge likely if caught.
Once the car leasing application has gone through, there is the added consideration of getting insurance as an 18 year-old on a car that is brand new. In the face of likely high premiums, it may be that Black Box Insurance (aka Telematics) may be the best option, but not every funder allows this so be prepared and do your research beforehand.
There is no upper age limit when it comes to leasing a car provided the applicant can produce not only a full UK driving licence, but is also able to pass the credit checks and can afford the monthly rentals.
It is worth noting that when you reach 70, you will need to renew your driving licence if you wish to continue driving, and then do the same again every three years afterwards. Fortunately, the DVLA send out a reminder and an application form prior to renewal dates, because if you do not renew at the age of 70, the licence becomes invalid, which means that the car insurance becomes invalid and driving becomes a serious offence punishable with a fine, car seizure and even imprisonment.
Check out our blog about the RoSPA Older Drivers Drivers website here.
Still have a question about car leasing? Leave a comment below or call Nationwide Vehicle Contracts on 0345 811 9595.