Leasing a Car For People With Bad Credit
There is nothing like the feeling of sinking into new leather, breathing in that fabulous new car smell with a smile on your face and feeling the vibrations of your new car engine roaring to life. You can impress your friends and wow your neighbors with the right car, feeling the the confidence of knowing that you have made it. The following article will outline everything you need to know about leasing a car with bad credit, so that the dealership approves your new lease on the car YOU want, and ensure you are zipping down the highway, the wind in your hair in spite of your bad financial history.
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A car lease provides you freedom, and opens opportunities and for jobs outside of walking distance of your home.
As much as mass transport options can be convenient, noone wants to be seen getting off the bus for the key job interview that can change your life.
Unfortunately your bad credit scores can prevent your leasing just any car, but read on if you want to learn how to get around your financial history.
I Can't Lease A Car Because Of My Credit Score?
Leasing a car with a bad score can be difficult since most of the car dealers do not let people with a low credit score simply walk in and borrow for just any car. A car lease is similar in that the dealer will check your credit in order to assess your financial capability of meeting your lease payments.
People with a bad FICO report are considered a high risk to the lessor - the risk is that you will not be able to pay on time, will default on the payment or will consistently fall into arrears on your lease payments.
In the case that you default the dealer will likely repossess the car causes dealers a headache because the condition of the car is might have devalued its worth.
Your average car lease contract requires an up front deposit for security in addition to the monthly lease payments.
The key to getting poor credit car leasing approved is to expect to deposit a higher downpayment in order to rely less on your financial responsibility assessment based on credit. Dealers will often allow for a lease if you will offer terms in exchange for their higher risk.
Not all dealerships will accept this next leasing strategy but it is worth considering offering additional collateral as security when leasing a car. Contracts are wide open, and almost everything is possible when mutually agreed upon, and additional collateral if accepted will help secure the asset in the case you default on the payment of your car lease fees.
Bad credit car dealerships and used car dealers will typically be more flexible to this type of creative car lease arrangement.
When leasing a car with a bad rating you benefit by shopping around amongst the different auto dealerships that offer leasing options for low scores. Do not focus on one dealer alone, it pays to have dealers compete for your lease.
You might be as excited as pie and ready to sign on the dotted line to lock in your new car lease, little knowing that the next dealer has easier qualification standards and a better deal waiting that you missed out on. The next car lease offered might be at a lower price.
Prepare Before Going Car Lease Hunting
Before you begin negotiating with the dealers, be sure to get a copy of your own credit report so that you will have an idea of your own standing.
How bad is your credit really, at this very moment, you might have a lower lease risk than you think.
If you are having trouble getting a car lease approved, it might be only a couple of negative items on your credit report that are preventing you from success. You have the option to go to the three credit reporting agencies and request to remove from your credit report negative items that are not factual so that your credit report will look good on paper to increase your lease approval chances for your dream car.
In addition to increasing your chances for approval, it will save you money as a good credit score help you lower your lease rates and could help lower any deposits required.
If you have your heart set on leasing a car, dealerships offer options. Reference wikipedia's guide to car leasing for further information. Large car dealerships and some smaller auto dealerships can replace the bank and offer their own lease structuring options.
A large car dealer in this economy might be overstocked and in need of lowering their inventory making them more willing to provide bad rating car leasing options that they otherwise would not consider.
The telephone is your friend, and can save you time, but get out and speak face to face with the leasing office personnel, the relationship you build could sway the scales in favor of your lease approval.
Additionally, talk with the head of the finance department of the car dealership that you want to lease a car from. Negotiate with them without giving them the opportunity to look in your credit standing.
Leasing a car with bad credit might prove impossible BUT...
you might be surprised with a loan option for purchase. They are as interested in selling or leasing you a car as you are in getting behind the wheel of your new auto.
Let car leasing people see your sincerity and that you intend to make your car payments on time. However, do not fake your sincerity. Be genuine to who you are, there is no need to hide anything.
What To Do If You Still Can't Get Approved?
Make steps to improve your credit standing and build a history of on time regular payments. Shift your focus to paying your loans and/or credit cards on time and keep records of your good faith payment history.
We want to build a case for your being a good risk for a car lease that you will then return to the dealer with. In addition your credit score will slowly improve. Speak frankly with the car leasing agent, find out what the minimum score is required to lease a car with bad scores.
While you are working on polishing your credit reports in order to make leasing a car easier, you can start saving up for your deposit for the car you want. When you return, if your credit standing will still makes you unqualified to lease the car you want, you have the other option of paying a higher downpayment, or you might have enough to get approved for a bad credit car loan.
Find out what loan offers for buying a new car might be available to you with our recommended auto financing provider...
Bad Credit Car Dealerships
There are car dealerships that accommodate people with a bad financial history. Look around in your neighborhood to find the poor credit dealers. Working with the bad FICO dealers will provide you much more lease contract flexibility, but expect financing costs to compensate.
Avoid entering any agreement that the monthly payments will be a challenge to meet, it will only lead to your facing similar car lease difficulties next time around.
When dealing with car dealers offering lease options, let them see your credit report and they will determine quickly if you meet their qualification standards for leasing a car. If not, don't worry, offer any of the creative car leasing approval strategies above, and if still no luck, move on to the next flexible financing dealer on your list.
When leasing a car with low scores, many of the cards, unfortunately are in the hands of the dealership. Relationships can make the difference, so be charming, smile, meet the people offering the lease and show them your genuine sincerity in wanting to make a deal.
Getting bad credit car lease approved requires a little luck, a good reaction, and a lessor willing to trust you with a second chance, keep at it and you will find one.