Leasing credit checks

[Dr Jekyll]

I'm sure this has been asked before. But what criteria do finance companies use to decide whether to clear you for a leasing agreement? Is it based on total value or payments proportionate to income or do they look at current expenses? Assuming a decent credit history, at what point do they say 'perhaps you should consider something cheaper'?

[dogz]

Each lender will have a different scorecard to decide if they will lend or not. Broadly speaking all will be looking to ensure you can repay the debt based on your current circumstances

They will look at incomings vs outgoings as well as what your total credit utilisation is vs what you have available. If you are near the max limit on you credit cards and don’t clear each month then it’s fair to assume you aren’t awash with surplus funds. Most will allow committed expenditure including the lease up to a % of money coming in. This will vary by lender but is prob around 60%-70%