How to Lease a Car With No Credit

Leasing a car with no credit can be a challenge, but most auto dealers would rather take a risk on someone with no credit at all than someone with bad credit history. To lease a car with no credit, a cash down payment is usually required, as well as a stable job with solid income.

Difficulty: Moderately Challenging

Instructions

1. Gather your documents before actually visiting a car dealer. Prepare copies of items such as paycheck stubs, utility and phone bills, lease agreements and bank statements. You should also have names and numbers of business and personal references, as well as the name and number of your landlord. Since you have no credit, these documents are especially important to the car dealer.

2. Offer at least a $1,000 down payment, depending on the car you wish to lease. You may be asked to place more of a down payment depending on what kind of car you want and how much time you have on your job.

3. Negotiate the deal like any other auto purchase or lease transaction. Test drive the car before signing anything. Ask clear questions about what is and is not included. Ensure that you understand the monthly payments and lease buy-out amount before finalizing the deal.

Tips & Warnings

• Be realistic in what kind of car you want to lease when you have no credit. It is highly unlikely that you could get a Mercedes or BMW lease without a significant credit history. Remember that your lease payments allow you to use the car during the term of your agreement, usually 36 to 48 months. If you wish to keep the car at the end of the contract, you must pay a lease buy-out fee.
• Never sign an agreement without understanding how many miles you can drive during the term of your car lease without financial penalty.