Tips to Get a Bad Credit Car Leasing

Bad Credit Leasing

Car ads can give you the wrong ideas.

Seeing the ads, you get the impression that all you have to do to get a car is walk into a dealership, point to the vehicle that you fancy, and you can drive away with it. The reality is a lot more complicated.

It becomes even more complicated when you have bad credit. You get fewer options.

So, is it possible to get bad credit car leasing?

Tips to Get a Bad Credit Car Leasing


The answer is yes, you can lease a car even if you have bad credit. With bad credit car leasing. It’s not going to be as easy when you have good credit but it is possible. There are certain things that you would have to accept. For example, you may have to accept that you will get a higher interest rate or a higher lease payment.


Now, here are some tips that you can use in order to get a bad credit car leasing:

Tip 1: Check Your Credit Score

This is the most basic thing that you can do when you want to lease a car and you have bad credit. In the first place, how do you know that you have bad credit? There are websites where you can check your score.

There is no actual definition as to what is a bad score but there is an agreement on what that is. It is all relative but if you fall below 650 and above 620, then you are still okay. You should have an easy time financing your lease. If you go below 620 then you are definitely going to have a hard time, but if your score is below 550 then you are in trouble. It is possible to find financing even under that score but it would only be under a very high interest rate.

Once you have checked your score, the next move is to look at your credit report. The major credit bureaus are required to provide you with free copies of your credit report.

What you should look out for in the report would be the errors, which unfortunately are quite common.

Tip 2: Get Quotes

The next move for you is to get quotes from online lenders. There are online loan aggregators that specialize in subprime loans. Those would be the best bet for you to get quotes.

What are these aggregators? What they do is they send out your application to different lenders. Sometimes, they would send out to hundreds of lenders, which increasing the chances that you will get an approval.

Once you do get quotes, take note of the best offers that you will get. Your job is to compare the offers of the various lenders.

Tip 3: Contact Your Bank and Credit Union

Getting approved by an online lender is a huge step in the right direction. You can use that as a tool when you start negotiating with other lenders. It is also useful for comparing the possible offers that you can get.

The next move for you is to get in touch with your local bank and see if you can get financing through them. If you have a long relationship with your bank and they know you, it might be a good idea to take advantage of that. Since they know, they might be willing to overlook your bad credit and help you out with leasing a vehicle.

Aside from your bank, you can also get in touch with a credit union. Now, you would have to be a member of a credit union in order to get financing from them, but it should be worth the cost and the trouble.

Tip 4: Ask for a Dealer’s Help

Your local car dealer should be able to help you out too. They work with multiple lenders and chances are that one or all of those lenders can finance you lease or buy a car.

By now you should have a loan approval. If you have an approval, you would have a clear idea on the maximum amount for which you can get an approval. With a bad credit, your options would be limited to buying or leasing a used car.

Your choices would be limited to the vehicles that are available in your area for that price point. You should expand your choices by being open to different vehicles.

If you do not have an approval at this point, the dealer will most likely use that against you. There is nothing personal about that, it is just how they earn their money.

Tip 5: Consider Your Options

Whether you got an approval or not, this is the point when you have to stop and consider your options. If you did not get an approval, then you really have to stop and consider if it is not better to stop and consider postponing leasing your vehicle.

Is it worth getting stuck with very high interest rates? Maybe you can improve your credit score.

If you feel that you will have a hard time paying an additional obligation, then  it is better to postpone your plans for a while until your finances improve.

Tip 6: Consider Taking Over a Lease

Now, this is something that is not known by everyone. You do not have to get a new lease from a dealer. You can just takeover a lease from an individual. If you can find someone who is having a hard time maintaining the payments, then you can offer to take over.

The dealers will still check your credit if you offer to take over a lease of one of their clients, but they will be a lot less strict then.

Why would that be the case? Well, just think of it, you are actually doing them a favor. They would much prefer to take over a lease of one of their clients who could no longer afford it than have to repossess the vehicle and lose money.

Pros of Leasing a Car with bad Credit



Here are some of the pros of leasing a vehicle if you have bad credit:

  • There is a good chance that you will end up with the vehicle that you really want with all the nice features.
  • The lease comes with a warranty period. That means you will not have to spend a single dollar into getting it fixed.
  • Each timely payment you make works towards improving your credit.

It is not all positive though. If you have a really bad credit, you must pay a high down payment then. Aside from a larger down payment than usual, the interest rate is also bound to be higher than average.

Having a bad credit will also mean that you will be a target of scams or the dealers might take advantage of you in any way they can. You cannot blame them for that. It is their job to try and get away with taking advantage of you if they can.

These are just some of the effective tips that you can use in order to get a lease even if you do have bad credit. As you can see, it is not impossible in order to get financing but it would not be the easiest thing in the world. With these tips, you can be on the right track.