Australia’s financiers have a very good record in lending money, we have a very robust mechanism for reporting on peoples credit history and importantly checking to make sure an individual is able to borrow and repay the money they require. Leasing companies are no different to most other lenders, they collect basic information to make up a complete finance application for assessment. The four main areas of data collected and used to make this decision are catagorised into the four C’s of lending;
Capacity – This is the applicants ability to repay the loan and pay for their current lifestyle including all existing debts. With a novated lease the lender will also take into account the partners contribution to the family or relationship income.
Collateral – This is the value of vehicle the applicant is wanting to buy. The financier will want to know that the value of the vehicle matches the finance amount so that they are not at risk. For example vehicles with a large number of accessories will need to have a detailed accessory list to justify the price.
Character – This is the detailed information on who the applicant is. Questions will be asked on; how long has the applicant been at their current address and at their current workplace, what’s their occupation……have they borrowed money before, have they ever had a problem paying it back, has the applicant got any savings?…….
Credit – This is all about lending and payment history. The leasing company will perform a credit check to make sure the person has paid all debts on time.
What if I missed paying a few energy or telephone bills?
It is not uncommon is today’s hectic life to miss a few bills, as long as you had a reasonable explanation and the debts are paid the leasing company can take this into account. The good news about a Novated Lease is that most financiers take into account the fact that they will be getting the lease payments from your employer before you pay tax. This means that if you have small credit issues they can usually be overlooked as long as they have been paid or are paid prior to the finance being settled.
The best way to ensure you are not wasting your time before shopping for a car get a pre-approval. Our pre-approval process can be done over the phone in a few minutes. The pre-approval then allows you to shop with confidence and negotiate a better car price.
For any questions and if you want to get a pre-approval please call us on 1300 990 880 or complete our online form by clicking HERE.
A competitive Novated Lease starts with a transparent calculator.
Our online calculator is very accurate, takes 30 seconds to use, and we never require your personal details to get a quote.