Car leasing with BKR: options and alternatives

Leasing a car with BKR registration seems difficult at first glance. You may have heard that leasing companies are strict when it comes to your credit rating. But does a BKR registration automatically mean you can't lease a car? Certainly not! There are several options, depending on your specific situation and the type of registration.

In this comprehensive guide, we'll take you through all aspects of car leasing with a BKR registration. You'll discover what options you have, what the differences are between private leasing and business leasing, and how a BKR registration affects your options. We'll give you practical information on how to make the right choices and what to do if you run into problems.

How does removing a BKR registration work?

What does a lender pay attention to?

Do you want to buy a house or take out another loan? Then the mortgage or lender will look at your financial spending capacity. Not only do the loans you have taken out affect your ability to take out a mortgage, but your income is also important. The ratio of credits to income determines your financial spending power.

The outstanding loans are weighed against your income. This allows the lender to determine whether you have sufficient financial resources to meet the monthly (mortgage) payments and whether you can take out the loan or mortgage.

What is a BKR registration and what does it mean for auto leasing?

A BKR registration is simply a record of your credit history with the Bureau of Credit Registration. Important to know: not every BKR registration is negative. If you pay off your loans and credits nicely, you will have a positive registration. However, leasing companies mainly look at negative registrations or codes, which occur when you have been in arrears with payments.

When you want to lease a car, the leasing company almost always does a BKR check. This is because they want to make sure you can pay the monthly lease payments. Moreover, since April 2022, the impact of private leasing on your BKR registration has increased. The entire lease amount is now registered at 100%, instead of 65% as before. This directly affects your borrowing capacity when applying for a mortgage, for example.

"Many people think a BKR registration means you have nowhere to turn. The reality is more nuanced. The type of coding, the amount of debt and how long ago it was incurred make a big difference. For many clients, we still find a suitable solution."

Deepak - Legal Specialist

An important distinction is the type of coding that accompanies your registration. The most common are A codes (A1, A2, A3, A4) and H codes. For example, an A2 coding is a heavy registration where the entire debt is due, while an H coding indicates that a previous arrearage has since been cleared. With leasing companies, these differences matter a lot to your chances.

Different lease forms and their relationship with BKR

Before we delve deeper into leasing with a BKR registration, it is important to understand the different forms of leasing. This is because each form has different implications for your BKR status and options.

Private lease for individuals

With a private lease, you rent a car for a longer period of time for a fixed monthly fee. This usually includes all costs such as depreciation, insurance, road tax and maintenance. This is a popular option because you can immediately drive a new car without a large investment in advance.

What you need to know: private lease is always registered with the BKR registration. Since April 2022, the full lease amount (100%) is registered, which has a big impact on your borrowing capacity. With a lease of €400 per month, for example, you can get €45,000 to €115,000 less mortgage.

Financial lease for entrepreneurs

Financial lease is a form where you as a business owner take ownership of the car at the end of the lease term. You capitalize the car on your balance sheet and it is in fact a form of deferred purchase. Whether this affects your personal BKR registration depends on your form of business:

• With a private limited company, financial leasing is not registered in your name with BKR, because there is legal separation between your private assets and the company assets
• In the case of a sole proprietorship or partnership, financial leasing is registered with BKR because there is no legal separation between private and business.

Operational lease for entrepreneurs

With operational leasing, you as a business owner rent the car for a longer period of time. The car remains the property of the leasing company, even after the lease period ends. With business contracts in the name of the company, operational lease does not lead to BKR registration for you personally. This makes it an attractive option for many sole traders and small business owners, as your private financial space is preserved.

Can you lease a car with negative BKR?

The question that probably concerns you most: can I lease a car with a negative BKR registration? The short answer is: yes, but not with all leasing companies and it depends on several factors.

Traditional leasing companies affiliated with the Private Lease Quality Mark usually reject applications with a negative BKR code. They have a duty of care and want to prevent you from getting into financial trouble. Leasing companies without this seal of approval are sometimes more flexible, but may impose other conditions such as a higher down payment.

Factors affecting your chances of approval:

• The type and severity of your BKR code (A1, A2, A3, A4 or H code)
• The age of your registration: an old minor registration carries less weight than a recent major backlog
• Your current financial situation: a stable income improves your chances
• Your business form in business leasing: a limited liability company offers more options than a sole proprietorship

With a limited liability company, the leasing company mainly looks at the company's own figures. Your personal BKR registration then plays a smaller role. With a sole proprietorship, your personal credit history counts more heavily in the assessment because there is no legal separation between you and your business.

Some leasing companies specialize in customization for business owners with BKR registrations. They look beyond the numbers and assess your current financial stability. These companies often do ask for recent annual figures, a forecast of your sales and sometimes a 20-25% equity stake.

Car leasing with BKR privately: what are your options?

As an individual with a BKR registration, your options for private leasing are more limited, but not impossible. There are several routes you can consider:

Regular leasing companies with terms and conditions

Some regular leasing companies accept customers with light BKR registrations, such as a reinstated H-code or an old, minor registration. They do then impose stricter conditions:

You must be able to demonstrate that you now have a stable income. A permanent contract is a big advantage here. They also often ask for a higher deposit or down payment as extra security. In addition, they look critically at the ratio of your income to your fixed expenses, including the new lease amount.

Alternative providers

There are special leasing companies that cater to people with BKR registrations. These parties do not do a standard BKR check or have different assessment criteria. Take note of these:

Monthly fees are often higher than with regular leasing companies. Read the terms and conditions very carefully, as there may be hidden costs. It is also important to check that the provider has a good reputation. If in doubt, have your terms reviewed by a legal expert.

Flexlease as an option

Flexlease is a short-term form of lease without long-term commitments. Here you lease the car for a short period, usually from 1 to 24 months. This can be a solution if you need a car temporarily. Not all flex lease providers do a BKR check, which can open doors if you have a registration.

Keep in mind that flex lease is usually more expensive than regular lease. The higher monthly cost must fit within your budget to avoid new financial problems.

Removing BKR registration: when is this possible?

If your BKR registration is preventing you from leasing a car, removing it may be the best solution. This is not always easy, but is possible in certain cases. There are two main categories for removal:

Wrongful registrations

If your registration is factually incorrect, you can have it removed relatively easily. For example, when:

• The debt has been paid off in full but is still registered.
• The information recorded is incorrect, such as wrong amount or name.
• There is identity fraud where someone else has taken out a loan in your name.

In these cases, you can object to both the lender and the BKR itself. Dynamite Netherlands can help you with this by taking the appropriate legal steps.

Wrongful registrations with disproportionate consequences

Even justifiable registrations can sometimes be removed if the registration disproportionately impacts your life. This is based on the Supreme Court's Santander ruling. This involves balancing interests between the importance of registration and the impact on your life.

Examples of situations in which this can succeed:

• You cannot buy or rent a home due to registration, even though your financial situation is now stable.
• Registration hinders your entrepreneurship while your business is running well.
• The debt was relatively small or arose due to special circumstances such as illness.

Removing a justified registration requires a thorough legal approach. A specialist such as Dynamite Netherlands can assess whether your case has a chance of success and guide you through the entire process. This involves first trying to remove the registration through an out-of-court settlement, and if that fails, legal proceedings can follow.

Impact of leasing a car on mortgage applications

If you are considering leasing a car but also want to buy a home in the future, it is crucial to understand the impact leasing will have on your mortgage options.

Since April 1, 2022, this impact has increased significantly. Previously 65% of the total lease amount was registered with the BKR, now it is 100%. This means that a lease will count more heavily when determining your maximum mortgage amount.

A practical math example:

Suppose you have a private lease of €400 per month. According to calculations by Independer and Eigen Huis, this can reduce your mortgage capacity by €45,000 to €115,000, depending on your income and other financial obligations. This is a significant amount that can make the difference between being able to buy your dream home or not.

If you know you'll be applying for a mortgage soon, it's wise to think carefully about your choice of private lease first. Consider alternatives such as:

Buying a used car with saved funds. Business leasing through your limited liability company if you are a business owner, as this will not register in your personal BKR. A flexible short-term lease if you need a car temporarily.

If you already have a lease and want to apply for a mortgage, in some cases it may make sense to pay off the lease early. Discuss this option with your leasing company and a mortgage broker to see what is most advantageous in your situation.