If you believe the ads on TV, leasing a car is very easy and
anyone can do it. The reality is, if you have trouble qualifying
for a loan to buy a car,
it’s probably not going to be easy to lease a car.
Still, leasing a car is cheaper than buying a car, so leasing
makes more sense if you are on a tight budget. However, be aware of
the potential mistakes when
leasing a car.
So, how do you lease a car with bad credit? Try these
strategies to improve your chances:
- It would be wise, if possible, to tune up your credit score before
you apply for an auto lease. Your credit score is going to be
the primary factor in qualifying for a lease, so do what you can to
raise it. Check yours today for free at myBankrate.
- Make sure you have some cash saved. It’s
likely you’ll need a larger down payment (i.e., cash due at
signing) than what the car ads tell you, or you’ll have to provide
a security deposit.
- If your credit is bad, expect to pay a higher interest rate,
often called the “money factor” or “lease factor,” in leasing
- If you are having trouble leasing a car or getting an interest
rate you can afford, you might try a lease transfer. Two well-known
companies that arrange lease transfers are SwapALease.com and
LeaseTrader.com. These companies specialize in pairing people who
want to get out of a lease with people who want to take one over.
Lease takeovers still require a credit check, but the terms are
often less strict and you can generally avoid the down payment
requirement you’d have if you had gotten a conventional lease.