The start point for the best source of fleet information |
'Subprime' leasing market on the rise
Date: 16 September 2013
Bad credit car-leasing specialist Ultracar is claiming to have witnessed a 40% increase in enquiries over the past 12 months, which it is putting down to young start-up companies not being able to access traditional leased vehicles as they don't have the proven track record required to enter into the contract.
The firm said young entrepreneurs are turning to the subprime market to get their growing workforces mobile, as banks and mainstream funders won't grant funding for two years - the time it takes to lodge accounts at Companies House.
"Subprime leasing has come into its own during the recession because many people simply cannot get credit, and it may be through no fault of their own, as in the case of young start-ups who need mobility but cannot get fleet vehicles because of having no credit score," said managing director David Riches.
"We see many fledgling companies who simply can't get the streams of credit they need to get started. Getting vehicles is fundamental to their early success in a difficult economy and I am convinced holds them back."
