Leasing a car can reduce your monthly payment. But if your credit is less than perfect, your chances of car leasing with poor credit, although better than a few years ago, is not guaranteed.
There is a minimum credit score needed to qualify for a lease, but it’s impossible to say what that number is because of all of the factors involved. Let’s dig a little deeper to learn why.
Leasing a car can be a good option for certain types of drivers, but this option isn’t right for everyone. Sometimes buying a vehicle makes more sense.
Traditionally, leasing a car has not been considered a good option for drivers with bad credit. However, captive lenders such as Kia Motors Finance are making it possible for more consumers with bad credit to lease vehicles.
If there is equity in your current car, you can use this equity as a “cap cost reduction” on a lease. In this situation, you would basically be selling your vehicle to the dealership or leasing company. The money from the sale could then be used as credit toward your monthly lease payments.
New data suggests that some car buyers might come out ahead if they switched over to leasing. However, for buyers with bad credit, this may not an ideal option.
For those who want to drive a new vehicle, leasing is cheaper than buying. And, of course, buying a used car is less expensive than opting for a brand new model. So if you have bad credit and need a vehicle, should you lease new or buy used?