{"id":5480,"date":"2021-10-20T14:31:00","date_gmt":"2021-10-20T08:31:00","guid":{"rendered":"https:\/\/carsplan.com\/?p=5480"},"modified":"2023-11-28T16:43:37","modified_gmt":"2023-11-28T10:43:37","slug":"best-place-to-lease-a-car-with-bad-credit","status":"publish","type":"post","link":"https:\/\/carsplan.com\/best-place-to-lease-a-car-with-bad-credit\/","title":{"rendered":"Best Place to Lease a Car With Bad Credit"},"content":{"rendered":"\n

Leasing is the best way to get a new car since it comes with lower monthly payments than purchasing a vehicle on credit. The leasing company usually allows you to use the vehicle for some time (usually 36 months), after which you can return the vehicle. At the end of the lease period, you can choose to return or purchase the car. Usually, it would help if you had a credit rating of about 700 to lease a car.<\/p>\n\n\n\n

What if you have bad credit? Even though renting a car<\/a> with bad credit is still possible, it would require you to reach out to specialist leasing companies. From these, you can find the best place to lease a car with bad credit. The leasing company<\/a> might require you to make a higher initial deposit and increased monthly payments thanks to your bad credit. This article discusses what it takes to lease a car with bad credit. Keep reading for more information!<\/p>\n\n\n\n

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Best Place to Lease a Car with Bad Credit<\/h2>\n\n\n\n

Before you lease a car, look for a reliable, affordable leasing company. It could either be a regular car dealership or a \u201clease-here, pay-here\u201d organization. Here is a description of the two types of car rental organizations to help you find the best place to lease a car with bad credit:<\/p>\n\n\n\n

1. Regular Car Dealerships<\/h3>\n\n\n\n

With a regular car dealership, it is tough to lease a car with bad credit. Most car dealerships may enter a car leasing deal with you if you have a credit score of 700 or thereabout. Since these car dealerships are the leading industry organization, they wouldn\u2019t give you a deal if your credit rating is below 620, which is considered subprime. Therefore, you need a relatively good credit rating to lease a car from a regular car dealer. If you have bad credit, the best you can get from the car dealership is a deal with high monthly payments.<\/p>\n\n\n\n

2. Lease-Here Pay-Here Dealerships<\/h3>\n\n\n\n

If other leasing companies won\u2019t give you a deal due to bad credit, the best option is a \u201clease-here, pay-here\u201d dealership. Unlike regular car dealerships, which offer new vehicles for lease, \u201clease-here, pay-here\u201d dealerships have used vehicles. After getting rejected everywhere else, this is usually the best place to lease a car with bad credit.<\/p>\n\n\n\n

However, the terms and conditions of the deal might prove too expensive for you to afford. Apart from requiring weekly or bi-weekly car lease payments, the company may charge you high rent while providing no coverage for repair and maintenance. Therefore, you should consider this kind of dealership only after exhausting all other options. If you choose to sign the dotted line on the lease documents with a lease-here, pay-here dealership, make sure you have internalized all the terms and charges involved in the lease.<\/p>\n\n\n\n

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How to Improve Chances of Getting a Lease Approval?<\/h2>\n\n\n\n

For you to lease a car from a regular dealership with lousy credit, there are several things you can do, including the following:<\/p>\n\n\n\n

1. Make a Substantial Down Payment<\/h3>\n\n\n\n

If you make a substantial down payment, the car dealership is likely to agree to a deal even with bad credit. You can raise the down payment (capitalized cost reduction or cap-cost reduction) by saving money over a long duration. That would mean being ready to wait for long before getting a car. Once you put down a substantial amount of money, the cost of the monthly payments will go down. Also, the car leasing company is highly likely to approve your application for a lease. But remember that most leasing companies restrict the maximum amount of money you can raise as the cap-cost reduction.<\/p>\n\n\n\n

2. Make a Joint Application<\/h3>\n\n\n\n

Some car leasing companies may allow you to make a joint application with a co-signor family member. Usually, the co-signor has better credit than you. Apart from co-signing reassuring the leasing company of your ability to pay, it combines your incomes to cover the monthly payments. Once the deal gets approved, both of you must contribute towards the monthly payments resulting from the lease. However, some leasing companies may require both of you to live in the same house.<\/p>\n\n\n\n

3. Get a Guarantor<\/h3>\n\n\n\n

If you cannot find a co-signor residing at the same address as you, then get a guarantor to sign the lease documents for you. If you default in your monthly payments for some reason, the guarantor takes over and pays on your behalf. Therefore, it helps to get a family member with solid credit to act as your guarantor.<\/p>\n\n\n\n

4. Lower Your Debt-To-Income Ratio<\/h3>\n\n\n\n

The debt-to-income ratio is calculated by dividing your monthly debt payments by the monthly gross income. Most lenders, including car dealerships, often consider a lower debt-to-income great for supporting your lease application. However, lenders often consider the debt-to-income ratio together with other factors to determine your ability to make the monthly payments.<\/p>\n\n\n\n

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Alternatives to Leasing a Car with Bad Credit<\/h2>\n\n\n\n

The chances are that dealerships will turn you down because of your bad credit. In that case, you should consider an option other than a lease. Here are some of the ways you can still lay your hands on a car:<\/p>\n\n\n\n

1. Take Over an Existing Lease<\/h3>\n\n\n\n

One of the best ways to get a car is through a lease transfer or lease swap. Find out from the leasing company if it can approve you to take over someone else\u2019s lease. Once you take over the lease, you will assume responsibility for the remaining monthly payments and original lease terms. Several leases swapping sites, including LeaseTrader.com<\/a> or SwapALease.com<\/a>, come in handy when identifying lease transfer opportunities.<\/p>\n\n\n\n

2. Buy a Cheaper Leased Car<\/h3>\n\n\n\n

Instead of insisting on getting a new car, consider buying a low-priced used car<\/a>, which will cost you less in monthly payments. That means you must apply for a used car loan, which may come with stringent credit checks. However, getting approved for a car loan with bad credit<\/a> can be easier than qualifying for a lease.<\/p>\n\n\n\n

3. Find a Dealership with Financing Options<\/h3>\n\n\n\n

Since you have bad credit, it can be difficult for you to get a newer car. However, a dealership with unique financing options can make that possible for you. Usually, the dealership has a special financing department that focuses on helping people with bad credit. The only disadvantage is that your bad credit would result in you paying higher interest rates on the monthly payments.<\/p>\n\n\n\n

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Things to Consider When Leasing a Car with Bad Credit<\/h2>\n\n\n\n

With a lower credit score, it can e extremely difficult for you to qualify for a lease. When you eventually get the lease, you might discover that the deal isn\u2019t so good because of the following reasons:<\/p>\n\n\n\n