What is the next best thing to do, when you cannot buy a car, which is beyond your affordability range? It is leasing the car of course. In the following lines, you will find a discussion of what car leasing is all about, its pros and cons, followed by a brief guide on leasing cars with bad credit.
Car leasing is using a new car on rent, instead of buying it. This option brings many high-end cars within your range and provides you with the luxury to have a new car every two or three years. One thing to be remembered is that car leases are only affordable with agreements lasting one to two years. Go for this option, only if the advantages of leasing a vehicle are greater than the disadvantages in your case.
How to Lease a Car With Bad Credit Score
As you know, the US economical system gives a lot of importance to credit scores. A high credit score makes your life much easier, while a bad credit score makes it difficult to get low credit loans or get lease deals on high-end lease-to-own cars. If the question of how to lease a car with bad credit is the central question that is weighing down on your mind, keep reading ahead.
A bad credit score does not mean that dealerships won't offer you car lease deals. It only means that they may play hard ball, when it comes to negotiating for down payment and monthly rent. In the worst case scenario, you might have been wondering how to lease a car with no money down, which is close to impossible without credit lines open for you. Leasing a car with bad credit is not as worse a situation as the one with no cash for down payment! In such a case, you will have to pay very high monthly rent, which will make leasing the car, costlier than owning it!
How to lease a car with no credit use or with a bad credit history, is the question that we explore in the following lines. First thing to do is to choose a car, which is a low end one. Go for a car with a low price tag, which has good mileage, instead of going for a high-end one. That way, you will get a lower down payment and also have comparatively lower monthly rent installments.
While discussing the lease terms, go for as high a down payment, as possible, which will give you some room to negotiate on the interest rate for rent. However, don't expect the dealers to be too lenient on the car rent installments. Be prepared to pay high monthly rent for the car.
Observe the lease terms that you receive. Evaluate if the lease that you are going to pay with interest, is going to exceed the price of the car, over the period of lease. If it is going to be so, then there is no point in going for a leased car!
Explore as many lease deals as possible, before you decide to go for any one. Personally, I don't think that leasing a car with bad credit is a good idea! It is neither going to create any asset for you in the long term, nor is it going to help your finances in the long term.
Hope the tips shared in this article on how to lease a car with bad credit help you out. Weigh the pros and cons of leasing a car against those of buying a car, before you decide to go ahead. As I said before, search extensively for good car lease deals, which will give you a wide set to choose from. Settle for the most economical deal that comes your way! I reiterate the fact that leasing a car with bad credit is an option that is going to burn a big hole in your pocket, in the long term. Go for it, only if there is no other option available and you are being financed by a third party. Otherwise, it is better to wait to buy your own car!