LEASING A CAR WITH POOR CREDIT CAR LEASING WITH BAD CREDIT PCH PCP WITH POOR CREDIT SCORE
A car leasing with bad credit is by definition to rent of a vehicle for an agreed amount of time and for an agreed fixed fee through a car leasing broker or dealer while having a low credit score because of having a history of not paying their bills on time or owing too much money.
Car leasing for bad credit is dedicated to drivers who had difficulty paying back a loan in the past and who are facing refusal from commercial banks and lender while seeking to fund a car acquisition via vehicle financing.
Leasing a car for bad credit consists of a leasing instrument where the financial lessor, generally a car dealer who makes available to a credit lessee who is having a low credit score because of a negative credit history.
Car leasing for bad credit is one of the options that remain available to a driver who faces a banking ban imposed by credit bureaus for having failed to repay on due time his debts but who need to drive a car without having to purchase it.
WHAT TYPES OF CAR LEASING ARE AVAILABLE FOR PEOPLE WITH BAD CREDIT?
Leasing a car for bad credit is often not a problem for the lessor (the one providing with the leasing) who is a car dealer, because the same lessor remains in principle the owner of the vehicle throughout the entire leasing period.
There are two types of leasing for bad credit:
- Personal Contract Hire or PCH for bad credit.
- The Personal Contract Purchase or PCP for bad credit.
The PCP and PCH for bad credit are a unique solution for people banned from banking and who are refused a car loan because of their poor credit check.
PERSONAL CONTRACT HIRE (PCH) WITH POOR CREDIT
The PCH for bad credit is in theory a good alternative option to financing a car by a lasing broker or car dealer given the difficulties of obtaining credit in this situation: this is therefore a long-term rental contract and not on loan and for people who don’t want to own the vehicle at the end of the contract.
PERSONAL CONTRACT PURCHASE (PCP) WITH BAD CREDIT
The PCP for bad credit is different in the sense as it’s a lease agreement with the option to purchase the vehicle at the end of the contract which makes the task difficult as it is equivalent to a loan or car financing even if it includes a renting process.
In conclusion, the PCH for bad credit is the most available and feasible solution for individuals with poor credit score as it corresponds to a simple car rent.
SERIOUS AND EFFICIENT SOLUTIONS FOR CAR LEASING ALTERNATIVES WITH POOR CREDIT SCORE
Alternative ways to hire a car while suffering of bad credit on top of the easing solutions are more available than you think:
- Long-term car rental without a car dealer but through a car rental company that does not require any credit score but only a driving license (however a cash deposit may be required).
- Car sharing which is meanwhile available in all major cities and does not require any bank history.