#leasing a car with bad credit
Have Bad Credit? Car Lease Tips to Get You Behind the Wheel
Even if you have bad credit. car lease options are still available to you. There are millions of people today who have to live life with bad credit. This could have happened through several different circumstances. You can restore your credit score through a simple process, but that could take a few years. There may come a time when you need to buy a vehicle and do not have the luxury of being able to wait. Here are a few tips to help you get in that car even if you have bad credit.
Bad Credit Car Loans are not the Only Option
In the world of bad credit financing, a lot of people believe they have to be sucked into a high interest auto loan that is backed by a substantial down payment. The truth is that these auto dealers will try to talk you into these types of loans because they do not care if you make the loan payments or not. They will get their money. If you default on the loan, the lender is the one who has to reclaim their losses. If you have bad credit, car lease is another option that is open to you.
A car lease is like a loan, but you must return the vehicle at the end of the agreement. You do not actually own the car once the agreed upon term has expired. You do have the option of buying it after the lease agreement expires. If you do not take that option you must return it.
If your credit is very bad you will be required to have some money as a down payment. Some dealers will require you to put down at least 5% to 10% of the actual cost of the vehicle. This could be anywhere from $300 to $1,000 dollars depending on the type of vehicle you are looking to lease. Usually this down payment is used to cover any documentation fees and taxes.
When there are several different car dealers in an area, you can use this to your advantage. Talk with the dealers about their bad credit car lease options and get quotes in writing. You can use this to show the other dealer what another is willing to do. This can start a sort of bidding war that will help negotiate interest rate, or even cost of vehicle.
Have Steady Income
One of the criteria for leasing a car with bad credit is you have an adequate income that will cover not only the car lease, but also your day to day living expenses. Unlike a car loan, the dealer will be leasing this vehicle to you and will have to take possession of the vehicle if you do not pay. So, they have an interest in you being able to pay each month.
As long as you can stay current with your lease payments, you will have a good opportunity to buy the vehicle after the agreement is completed, or enter into a traditional loan for a newer vehicle.
If you are struggling with bad credit, car lease options are there for you to take advantage of, to get behind the wheel today.