Bad Credit Car Leasing
Do You Need Good Credit to Lease a Car or Truck?
Curious to know if you can lease a vehicle with poor credit? Well, you’ll be glad to know that the answer is yes. Unfortunately, it’s not always easy. However, with a little research, some wise shopping, and knowing how you stand, it can be done. The following are several ideas and concepts from automotive professionals that can help evolve the distressed buyer into a clear-eyed consumer.
Come to Grips With Your Credit Score
An official credit score is an indicative summary of your standing as someone who takes care of their credit payments. The credit profile is a hint of your precise standing at the moment of research. Conversely, your credit report is a complete summary of your history as a debtor and consumer. Also, note that every time you check your credit score can negatively affect this score. It certainly can help to get a copy of your report and bring it to the dealership when you visit.
Credit scores range from 300 to 850. A rating below 620 is classified as a “subprime score”. On average, the minimum credit score required to lease a car or truck is 700.
What You Should Expect
If you’ve got low credit, or even if you may have to lease a car with no credit, realistically you probably won’t be getting your dream machine. With poor credit, however, cheaper vehicles will be easier to qualify for. Some leasing companies specifically handle bad credit applicants. Indubitably, there are car lots that work with all types of credit.
Find a Car Model that Dealers Are Most Interested in Leasing
If you are struggling to find somewhere to get a car or truck with weak credit, then it’s just like anything else – you can broaden your search. Vehicle manufacturers generally release new models towards the end of each year. As a result, most dealerships most likely won’t want outdated models taking up valuable space on their lots. Instead of continuing to lose money, they’ll most likely be interested to unload. This can be a good time for those with a low credit history.
Verify Your Steady Income
What about bad credit without a co-signer? You likely won’t qualify for a lease without an income. All is not lost, however – there is such a thing as bad credit car leasing. Show actual proof of your steady salary, copies of pay stubs and evidence of an income that is more than enough to take care of your monthly debts. Demonstrate that you are working to improve your low credit profile, and even include professional/personal references. Verification of prior leases you’ve had with near perfect payment history. If not a car or truck lease, a mortgage may also impress.
Save Up for a Greater Down-Payment
Down-payments can be an important reason for leasing companies when they determine your choices. Typically, those with near perfect credit will qualify for a nearly zero money down car or truck lease. However, for those with less impressive credit, the option for giving up a large down-payment can significantly increase your chances of a reasonable lease.