Leasing a car as a student: How to make it work
- By
Alex
Nationwide Vehicle Contracts breaks down how students can manage a car lease alongside their studies.
University is an exciting time for students, but some challenges crop up, one being your travel arrangements. If you live off campus or need to travel for your course, you might be exploring the possibilities of leasing a car.
Car leasing is a big financial commitment, and as most students don't want to look at their bank account all too often (we've all been there), making it work can be tricky. However, it is possible.
To help you out, car leasing experts Nationwide Vehicle Contracts break down how to make a car lease work when you're a student.
We’ve also produced a range of comprehensive guides for new drivers, looking into all things car leasing such as Best First Cars and Looking After Your Car.
One of the main reasons finance providers are put off from leasing to students is the precarious financial situation many students find themselves in.
The best way to get around this is to save up some money for your initial deposit and fixed monthly rentals. Think about it, cut out a few of those takeaways or a night out every week, and you'll start to see the rewards.
It will also show finance providers that you're responsible with your money when you come to show them your expenditure.
Getting a part-time job is a great way to make money as a student, as most of the time, you can balance your studies and social life alongside your job.
It will also contribute towards securing a car lease as you can provide payslips and proof of employment to a finance provider. This, alongside a decent credit score and good savings, will massively help you out.
Popular jobs for students include working in bars, restaurants, and hospitality.
Like the point above, finance providers often avoid students because of their poor credit scores. To improve it, take out a mobile phone contract or credit card and pay the money off immediately. This, once again, will demonstrate trust with the finance provider.
For more information, check out Experian.
If you've not had any luck with the above, using a guarantor would be the most sensible option. Usually, a parent or family member, a guarantor is a nominated individual who will cover the payments if you cannot make them.
A guarantor can be anyone over the age of 21, not financially linked to you (such as a second name on an account), and has a strong credit rating.
Lease contracts are usually spread out over two, three, or four years, with monthly payments decreasing in return for a longer contract term.
Agreeing to a four-year lease agreement will work in your favour as a student as you'll pay less on your monthly payments. Also, if you agree to the contract in your first year at university, you can change your car once you've left and secured a full-time job.
Instead of using all your brain power to find the cheapest student pub, put some of it towards finding a great deal for your car. The car leasing market is densely populated, so you'll most likely be able to find a cheaper deal or more benefits elsewhere.
Take your time, and don't feel pressured into agreeing to do a deal unless you are totally sure you can afford it.
Here at Nationwide Vehicle Contracts, we provide a range of affordable leasing deals and include benefits such as road tax and breakdown cover.
Looking to lease a car? Nationwide Vehicle Contracts are one of the UK's largest car leasing brokers and offer a range of affordable leasing deals available to students.
We also provide a range of comprehensive leasing guides such as New Driver Guides and Personal Vehicle Leasing.