While most of car commercials that you come across, would give you the impression that all you need to do is turn up at the doorstep of car showroom and point at a car of your choosing and it would be yours in no time, the behind the scenes reality is quite different. What most people are unaware of is the fact that bad credits score can adverse affect your chances of leasing a car. However, it certainly does not make it impossible for you to do so. You just have to be clever about it. So how can you lease a car with bad credit? Just start with finding out what is the minimum credit that car dealers would accept when it comes to letting you lease a car. While for most dealers it is somewhere around 620 credit points, with a little bit of research and the right tactics, you can definitely find someone who is ready to make a deal for less.
Keep your expectations simmered down
If you have a credit score that you know would not be a great hit with the car dealers, it helps if you keep an open mind and be in touch with the reality of things. Most of the dealers would probably want a higher than usual down payment and a greater interest rate than they normally charge, if you approach them for a lease with an absurdly low credit score or a Subprime score. Hence, instead of wasting your energy on trying to argue with them about these factors, it would help if you mentally prepare yourself for such occurrences.
Postpone your car leasing plans
If you do not have any urgent requirement of leasing a car, it is probably better if you could postpone your plans of leasing one after you learn that your credit score does not look good enough for executing those plans. This way, you get to do all the necessary calculation such as around what range of car you would be interested in, the amount of EMI that you would have to pay each month based on that and the kind of credit score that would guarantee you an interest score that would be feasible for you to work with. All of these estimates would help you to work towards saving a few bucks each month and pay your monthly credit payments in time so that you can return to that car dealer with an increased credit score that would grant you the benefit of paying a lowered security deposit as well as an interest rate that would suit you.
Taking over an existing lease
Did you know that it is not necessary that you have to lease a car directly from a car dealer? You can do so from an individual who has already taken a lease from the dealer but is now struggling with making the payments for the lease. Approaching such a person with an offer to take over their lease with no extra condition is no less official or binding than signing a deal with a car dealership. Sure, before the individual hand you over the car keys, the contract and the necessary documents, the car company he has signed the lease with would still need to check your credit score. But since you would be doing them a favor by taking over a lease that one of their customers could no longer afford to pay for, they are much less stricter in their scrutiny.
Pros of leasing a car with bad credit score
• You can end up leasing the car of your dreams, which has all the latest state of the art technologies and advancements.
• No matter how low your credit score is, the car that you lease will come with a definite warranty period. Hence if you happen to scratch off the paint or make a dent on it, you don't have to pay a dime to fix it.
• Every timely lease payment that you make each month also has a positive impact on your overall credit score.
Cons of leasing a car with bad credit score
• If you have a bad credit score, there is no way you will be able to get away with paying just a meager down payment on the car lease.
• The rate of interest will always be on the higher side and you eventually end up paying much more than the car is worth in the market.
• Many of the dealers will try and take advantage of your bad credit score and demand you to make payments every week or every alternative week instead of normal monthly payments.