You have decided that you would like to lease your next car, but you're worried that you don't have a qualifying credit score. Do you have a chance? It depends on exactly how bad your credit is, and what leasing terms you're willing to accept.
Who Qualifies for What
The most enticing lease deals (the ones that are advertised on TV and in fliers) are generally meant for people who have credit scores of 700+, the "prime" to "super prime" applicants. People with lower scores can get lease contracts, but the terms that they are offered won't be as desirable.
- Is your score right below the 700 mark? If your credit is rated between 680 and 700, you're almost in the prime category, but not quite. Depending on where you go and the details of your particular situation (Did your credit take a temporary hit due to an isolated event?) you may still be offered a prime deal on a lease. Or, you may have to pay just a little more in interest.
- Does your score fall between 640 and 680? This is truly the "near prime" category, and while you can definitely qualify for a lease if you're within this range, your interest rate will be noticeably higher (about 5%). And the contract that you're offered may demand a down payment.
- Is your score somewhere between 600 and 640? This puts you in the "subprime" category of credit. And if you're here, you will find that not every leasing company will be willing to offer you a contract. Granted, with a little shopping around, you may be able to find places that can work with you, but your interest rates will be very high, and you will be expected to put a substantial amount of money up front.
- Is your score below 600? This credit tier is generally referred to as the "deep subprime" level, and if you're here, you may have been through a bankruptcy, had a recent repossession, or have multiple unpaid accounts that are in collections. Applicants with these lower scores probably won't be able to successfully lease a vehicle.
Finding a Way
If your credit score is too low for leasing, or you don't want to commit to paying excessively high interest rates, you still have options to pursue.
- Get a cosigner. If a friend or family member with good credit is willing to assume responsibility for your lease along with you, this will give you an advantage. With a cosigner, you may be able to get a lease or lease rates that would ordinarily be out of your reach.
- Improve your score. If you don't need a car immediately, you may opt to take some time to repair your credit before you begin shopping for a lease contract.
- Reconsider buying. A subprime auto loan is generally easier to get than a subprime lease, so if you do need a car quickly, this is an option that is worth exploring. And keep in mind that getting approved for a bad credit car loan will give you an opportunity to improve your credit.
We Can Help
If having access to reliable transportation is something that you can't put off any longer, trust Auto Credit Express to assist you in getting the financing that you need. And our process is fast and easy.
Just fill out our secure online application to get started today.