How to Get a Lease for a Vehicle With Bad Credit
A poor credit history hurts your chances of obtaining a vehicle loan at a low interest rate, but it can also hurt your ability to lease a car. Car dealerships run credit checks on individuals interested in leasing vehicles for the same reason they review credit scores before offering financing to buyers -- doing so helps the dealership avoid unnecessary financial risks. If your poor credit history is standing in the way of your ability to lease a car, however, you have options at your disposal.
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Instructions
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Offer to make a security deposit on the vehicle you want to lease. A substantial security deposit reduces the risk a dealership takes by leasing to you. In the event you default on the lease and the car dealership must repossess the car, your security deposit helps cover missed payments and repossession fees.
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Ask someone with good credit to co-sign the lease with you. A co-signer's good credit helps you get approved for the lease, since the car dealership has the legal right to pursue the co-signer for any missed payments or additional fees you incur during the course of the lease period.
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Provide the dealership with a larger than normal down payment. Your larger down payment up front reduces the amount of your monthly lease payments. The dealership knows that the lower your lease payments are, the easier you can afford them.
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Lease an older vehicle, rather than a brand new one. A vehicle that is several years old is worth far less than the same model car brand new. Because the car is worth less, the dealership incurs a lower risk of financial loss by agreeing to the lease.
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Take over someone else's lease. Although the company holding the lease will still require you to pass a credit check, credit requirements for lease assumptions are typically less strict than those for acquiring a new lease.
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Tips & Warnings
Shop around for your lease. Just because one car dealership turns you down due to your poor credit rating, that doesn't mean that all dealerships will.
If you have bad credit, its unlikely that you'll find a car lease at a low interest rate.
Missing payments on your lease will damage your credit further. If you used a co-signer to get approved, the missed payments will also appear on the co-signer's credit report and will hurt his good credit rating.
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