Is There an Age Limit to Lease a Car?

Whether you're 17 or 70, if you're new to car leasing, chances are you'll have some questions about your eligibility, including how your age may affect your application. 

Here in the UK, car leasing has grown increasingly popular over the past few years with drivers of all age groups. In fact, a study by Experian showed that one in five 18 to 24 years olds in the UK lease their vehicle, which is more than double any other age group. 

But does your age affect your eligibility when it comes to car leasing? To help avoid confusion for drivers, both young and old, car leasing experts Nationwide Vehicle Contracts has put together a short guide explaining the age restrictions involved when leasing a vehicle, including: 

Yes, there are age restrictions involved when leasing a car. 

To apply for a credit agreement in the UK, you must be at least 18 years old. 

You must also prove to your finance provider that you have a continuous income stream and can afford the monthly rentals. This will limit many younger drivers who may not have a full-time job or a steady income. 

For older drivers, there are no restrictions as long as you meet the criteria set by the DVLA. 

Although you can legally start driving at 17 in the UK, drivers must be at least 18 years old to lease a vehicle. This is because a car leasing agreement is a form of finance or credit agreement that is contractually binding. 

Since 1969, the age of contractual capacity for individuals has been set at 18. Under UK law, those under 18 are considered minors, which means they cannot sign a legally binding contract for anything that isn't considered 'necessary'. The only exceptions are for agreements relating to apprenticeships, employment, education and service, where they are for the benefit of the child.

Once you turn 18 years old, you'll also need to fit other criteria to be eligible to lease a car. You'll need a full UK driving licence (provisional licences will not be accepted), a good to excellent credit score, and evidence of an income that can afford the monthly rentals. 

If you're still unsure if you're eligible for car leasing, take our interactive Am I Eligible for Car Leasing quiz, or visit Experian for top tips on understanding your credit score.

There is no upper age limit when leasing a car in the UK, provided that the applicant meets specific criteria and can provide the relevant documentation. This includes a full UK driving licence, proof of address, and proof of income. 

It is worth noting that many drivers may find it harder to secure a car lease if they're retired. With the loss of regular income, lenders tend to be wary of a retired driver's financial situation. Regardless of savings or your life pre-retirement, income still plays the most significant part in your financial viability. 

Once you reach 70, you'll also need to renew your driving license every three years if you wish to continue driving. You'll also need to inform the DVLA of any medical conditions that may impact your ability to drive. Common conditions that need to be reported include diabetes, heart conditions, stroke, and glaucoma. Failure to inform the DVLA of any medical conditions could result in a fine of up to £1,000 and prosecution if you have an accident.

For those over 18, while your age doesn't directly affect your eligibility to lease a car, it will be collected as part of your lease application and may be taken into account by the finance provider in terms of affordability and your ability to repay any borrowing. 

Younger drivers may find it trickier to be approved for car leasing because they typically have little to no credit history, making it difficult to obtain finance. This is because lenders tend to prefer lending to established borrowers who they can better assess the risk of paying back debt. 

Younger drivers are also less likely to have a continuous source of income, with many working part-time around their studies. In the eyes of a finance provider, this may hinder their ability to make regular payments.

As we explained earlier, older drivers may also find it harder to be approved for car leasing finance if they're retired. A steady wage reassures lenders, and as many older customers aren't as likely to still earn a salary, many view this as a higher risk of non-payment. 

That said, it is worth noting for both age groups that no lender uses your age alone to approve or decline you for finance. Other factors also come into play, such as your ability to make regular payments on time and any other debts you may have.

Still unsure if you're eligible for car leasing?

Still unsure if you're eligible to lease a car? Check out our comprehensive motoring and leasing guides for helpful advice and guidance or call Nationwide Vehicle Contracts on 0345 811 9595.

We are one one of the UK's largest car leasing brokers, offering a range of car lease deals from used car leasing to in stock car leasing.