You're on your way home from work in the Woodlands, or maybe down in Sugar Land, and your car starts to experience some trouble on I-6. Whether the Texas heat is getting to it, or some other issues are manifesting, you know that this time is the last straw and its time to look into something new. Then, you check the paper for new cars and see how much they cost. You instantly realize you're either going to need an auto loan or a lease, but now you have no idea which way to go. What are your options?
Right away, you might think that getting a new vehicle is going to be impossible because of your current financial situation. Fortunately, you do not have anything to worry about. So many different options may still be available. Yes, you could look into buying a very old used car with a lot of miles on it, but why do that? When you begin to research the process of leasing, you'll see that it could make a lot of sense for you and your lifestyle.
Chances are, you know someone who has leased before, but this does not mean you know exactly what it is. In some ways, leasing a car is comparable to renting an apartment. You make some sort of down payment (security deposit), make monthly payments (rent), and lease it out for a certain period of time. When that time ends, your payments for that particular vehicle and plan end. Of course, if you really like what you've been driving, you might decide to extend the lease or buy the car instead.
At this point, you are probably starting to suspect that a lease is something that you need to be approved for. Well, that is correct. When you go to get approved for a lease, the lender is generally going to look at the amount of your down payment, your credit score and how much money you make on a monthly basis. These three factors play a significant role in your ability to get approved, so you may wish to start working on bettering your financial situation as soon as possible if you feel that leasing a vehicle is the right option for you.
If you are not in a great spot with your finances, do not worry! You still have other options that you can consider. Working towards a pre-approval is an excellent idea. When you are pre-approved for a particular loan amount, some of your stress is removed and you can be on your way to a more reliable car soon. Additionally, you can look into some dealerships that specialize in car loans for people with negative financial situations. Remember, there are programs out there that are designed to help you procure a suitable car, regardless of your credit rating.
At the current time, you may not have a lot of money saved up. In fact, you might have no money saved at all. This can be a difficult predicament for a person who needs to take out a lease on a car. Fortunately, when it comes to leases, you may be in luck. While purchasing a car might require a rather extensive down payment, leasing is not always the same. You can often put a very small amount of money, as low as $500 cash down. In fact, situations occasionally arise where you do not have to put any money down at all on a lease.
Now that you are further into the process, you should start to learn about the monthly payments. With the dealership, you will work out a plan as to how many months are going to be in your agreement and the amount that you will be paying each month. Then, you need to be sure that you are making those payments on a regular basis. Failure to do so can really leave you in a bad position. The payments are going to consist of the base amount plus your interest rate. Interest rates are based on the current market, but also on your credit scores.
Leases provide you with a wonderful opportunity to improve your credit score, so you want to be sure that you are treating the payments wisely. When you make payments, they are reported to the credit agencies, so your credit score can slowly start to rise up the ranks. One day, you might visit a north Houston dealership and not have to worry about your credit at all!
Leasing a vehicle is a step that a lot of people choose to take and we can help you get started right here at Auto Credit Express. Whether you have poor credit or no credit, it may not matter. If you want to lease or take out a car loan, we can get you started with our online auto loan application.
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