Leasing a Car or Truck with Weak Credit
Do You Need Good Credit to Lease a Car?
Wondering if you can lease a car with bad credit? Well, you’ll be relieved to be told that the answer is yes. Unfortunately, it’s not always easy. However, with a little research, some wise shopping, and understanding how you stand, it can be done. The following are some ideas and concepts from automotive professionals that can help turn the anxious buyer into a keen-eyed consumer.
Come to Grips With Your Credit Score
An official credit rating is a summary of your standing as someone who takes care of their credit obligations. Your credit history is a hint of your precise standing at the moment of research. Conversely, your credit report is a full summary of your history as a debtor and consumer. Additionally, note that each time you run a credit check can negatively affect this score. It certainly can help to get a copy of your report and bring it to the dealer when you stop by.
Credit scores start at 300 and go up to 850. A rating below 620 is classified as “subprime”. The minimum credit score needed to lease most cars or trucks is 700, generally speaking.
What One Can Realistically Expect
If you have ugly credit, or even if you may be leasing a car without any credit, rationally you probably will not be bringing home your dream machine. However, with bad credit, cheaper vehicles will be less challenging to qualify for. Some leasing agents specifically handle applicants with poor credit. Indeed, there are car dealers that work with all types of credit scores.
Target a Car Model that Dealers May Be More Likely to Lease
If you are challenged to find somewhere to get a car or truck with low credit, then it’s just like anything else – you’ll have to broaden your search. Car manufacturers generally release new models and trims near the end of each year. As a result, dealerships will not want previous year models taking up valuable room on their lots. Instead of continuing to lose money, they’ll probably be interested to unload. This can be a good time for those with an ugly credit rating.
Verify that You Have a Steady Income
How about bad credit without a co-signer? You simply won’t qualify for a vehicle lease without income. All may not be lost. There is such a thing as bad credit car leasing. Bring actual proof of your steady income, copies of pay stubs and evidence of a salary that is more than needed to take care of your monthly expenses. Indicate that you are working to improve your low credit score, and even include professional/personal references. Verification of prior leases you have had with perfect payment history. If not a car lease, a condo may impress as well.
Save for a Larger Down-Payment
Down-payments are a strong reason for leasing companies when they figure out your options. Typically, those with near perfect credit will qualify for a zero money down vehicle lease. For those with less impressive credit, however, the option for offering up a large down-payment may significantly increase your chances of a reasonable car lease.
Leasing a Car or Truck with Weak Credit | Bob Howard Honda
Have a question? We’ve got the answer!
* = Required Field