Lease a Car With Bad Credit

Article rating:
5.0 / 5.0
23 user votes
Your vote has been saved!
Lease a Car With Bad Credit

If you have bad credit, you might feel that it is hopeless to lease a car, but that’s just not true. If you’ve been searching for the information on how to lease a car with bad credit, keep reading to find out the best information. There are not only things you could do to improve your credit, but also to lease a car with the credit you have now.

When is Leasing a Good Idea

Leasing a car is a good idea when you don’t think you will want to keep a car for a very long period of time, or if having a newer car is more important to you. Many people who prefer to buy cars keep their vehicles for a number of years, while the terms of most leases is 3-4 years. If you would like to trade in your car to get a newer one after a short period of time, a lease is probably for you. In addition, often times the monthly costs of leasing a car are less than purchasing, though there is always a down payment.

When is Leasing a Bad Idea

Well, if you plan to get a car as an investment or want to be able to “trade in” the car for a bit of cash when you’re done with it, then leasing would not be fore you. You will not retain any value of the payments you have made into the car. You should also make sure to look at the mileage limits when you lease a car. If you think you will drive more than that, it may be worth it to purchase a car because then you can drive as much as you want without having to worry about paying more when it comes time to turn in your leased car.

What Kind of Credit is Required for a Lease

When you want to lease a car, you will probably want to have as good credit as possible. However, if your credit isn’t ideal, there are still things you can do! The average credit score for people leasing a new car is 722 and most experts recommend having a score above 680 to get a good deal on your new car lease. The requirements are similar to car loans. You’ll still be able to get a lease with a lower credit score, but you might not get the best deal on it.

The specific requirements depend on the specific lease and company you are going through, but there are some general guidelines. In addition to your credit score, your income level and existing debt are important factors.

If you do have a lower credit score, you can still lease a car. You will just probably have to pay a bit more as your down payment, and you may have a higher monthly payment as well. Because of this, you might have to make a different choice than the car you had your heart and mind set on leasing. With a poor credit rating, some people say it may be better to buy a cheaper used car in order to build up your credit so you can lease a car in a few years.

Buying a Car With Bad Credit

The average credit score for people buying a used car is 656, which is significantly lower than the average for car leasing. Those who seek to buy a car with a poor credit score face the same type of challenges, your car down payment will probably have to be more, and you may have a higher monthly payment and higher interest rate. However, at the end of the day you will be improving your credit by buying the car, and you will have something you could trade in that has value once you’re done paying it off.

The experience of either buying or leasing a car with bad credit will definitely be easier if you try to take on things that will improve your credit. First of all, you can try to pay down debt, and make all your bill payments on time. If you’re in way over your head, you may want to contact a debt consolidation firm. Keep your credit card usage to under 10% and don’t open or close too many accounts. These are all great ways to improve your credit!

Conclusion

Overall, you shouldn’t let bad credit keep you from leasing a car or buying one. Leasing a car could be a great option for many people because it allows you to have a nicer car for less cost per month, but do keep in mind you will not have equity in the car. It’s perfect for people who plan to always have that nice new looking car or who always want the safest car with the best features. Improve your credit for a better car leasing experience, but don’t give up hope if your credit isn’t the best. Just start talking to a car leasing agent to find out what you’re eligible for and get started with the process.