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Will there be a credit check against my name with a Salary Sacrifice Car Lease?

Learn how a salary sacrifice works and whose credit is utilised to lease a car.

Introduction to Credit Checks

Car Salary Sacrifice Leasing is an increasingly popular way for employees to drive a new vehicle without having to pay for it upfront. Instead, the cost of the car is deducted from their pre-tax salary, making it a cost-effective option. But one question that often arises is whether there will be a credit check against the employee's name when applying for a Car Salary Sacrifice Lease. In this article, we'll explore the answer to this question and provide some helpful insights.

What is a Credit Check?

Firstly, it's important to understand what a credit check is and why it's carried out. A credit check is a process used by lenders and financial institutions to determine an individual's creditworthiness. It involves accessing an individual's credit report, which contains information on their borrowing history, including any loans, credit cards, or other credit agreements they have had in the past. The report also includes details on any missed payments or defaults, which can affect a person's credit score.

The answer is NO, but why!

Regarding Car Salary Sacrifice Leasing, the answer to whether there will be a credit check against the employee's name is straightforward. The answer is no. This is because all salary sacrifice car leases are BCHs or Business Contract Hires instead of PCHs or Personal Contact Hires. This means the company or employer is technically hiring or leasing the vehicle on the employee's behalf. The credit for any vehicle on the scheme is obtained in the company's name and against its credit profile. The company then gives you sole access to that vehicle for the lifetime of the lease and takes the cost of the vehicle from your pre-tax salary. This, therefore, means you do not need to worry about your own credit score with any salary sacrifice and can be a great way to obtain a brand new vehicle electric or plugin hybrid vehicle. For a full list of benefits visit our Employee Benefits page.


In conclusion, as long as the company or employer is eligible for credit then an employee can lease a car through a salary sacrifice lease. Please remember that there are eligibility criteria for a salary sacrifice, the most important being that after a salary sacrifice has been deducted, a company can't by law pay you under minimum wage. This, therefore, means that some cars may be too expensive to sacrifice dependent on the gross salary of each employee.

All salary sacrifice leases are long-term commitments for both parties and it's important for employees and employers to read the terms and conditions of the lease agreement carefully before signing up for a Car Salary Sacrifice Lease. This will help them understand the requirements and any associated costs. Employees may also want to compare different lease providers to find the best deal and ensure that they are getting a fair rate. Finally, it's worth remembering that a Salary Sacrifice Car Lease is a long-term commitment and is very similar to PCH and BCH contracts.

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