Can You Lease a Car with Bad Credit
Do I Need Good Credit to Lease a Car or Truck?
Curious to know if you can lease a vehicle with ugly credit? Well, the answer is almost always yes, but it can still prove to be very difficult. However, with a little research, some smart shopping, and understanding where you stand, it can be done. The following are just a few ideas and concepts brought to you by automotive experts that can help transform the worried buyer into a keen-eyed consumer.
Come to Grips With Your Credit Rating
An official credit history is a snapshot of your standing as someone who takes care of their credit responsibilities. It is a glimpse of your exact standing at the instant of query. Conversely, your credit report is a full summary of your history as a consumer and reliable debtor. Additionally, note that each time you run a credit check can negatively affect this score. It certainly can’t hurt to get a copy of the report and bring it to the dealership when you stop by.
Credit scores start at 300 and go up to 850. Anything under 620 is designated as “subprime”. Generally speaking, the minimum credit score needed to lease a vehicle is 700.
Be Realistic About the Reality of your Options
Even if you’ve got low credit, or may have to lease a car with no credit, rationally you probably will not be bringing home your dream car. With ugly credit, however, cheaper vehicles will be less difficult to qualify for. Some leasing agents specifically only handle applicants with weak credit. Undoubtedly, there are car dealerships that work with all states of credit scores.
Target a Vehicle Model that Dealerships Are Most Likely to Lease
If you are struggling to find somewhere to lease a vehicle with weak credit, then it’s just like anything else – you may need to broaden your search. Car manufacturers generally release new models near the end of each year. As a result, most dealerships most likely won’t want previous year models taking up space on their lots. Rather than continue to lose cash, they’ll likely be interested to unload. This can be a good time for those with an ugly credit rating.
Verify Your Regular Income
What about bad credit without a co-signer? You likely won’t qualify for a lease without proof of income. All is not lost, however – there is such a thing as bad credit car leasing. Show actual proof of your consistent income, copies of pay stubs and evidence of an income that is more than needed to take care of your debts. Demonstrate that you are working to improve your inferior credit ranking, and even include professional and personal references. Verification of prior leases you have had with excellent payment history. If not a car or truck lease, a household may impress as well.
Put Money Away for a Bigger Down-Payment
Down payments are an important factor for leasing agents when they figure out your options. Generally speaking, those with perfect credit will qualify for a nearly no money down vehicle lease. However, for those with less impressive credit, the option for offering up a large down-payment will greatly improve your ability to acquire a reasonable car or truck lease.
Have a question? We’ve got the answer!