leasing a car with bad credit
Photo credit:

Bad news: taking out a car loan is not within your reach. Now, onto the good news: you still can get approval for leasing a car with a bad credit.

For many people, big-ticket investments like homes and cars are intended to last for a long time. Considering that we live in a golden age of opportunities, the wealth of available choices give us flexibility, time and freedom to stay ahead.

For people, who value cost-effective flexibility, car leasing can be a good deal for sure. Moreover, even with a poor credit score, you can drive away with a shiny new vehicle. Not bad, right?

¼ of USA millennials chose leasing over buying. Thus, making up 12 percent of all leases in the US.

To get you up to speed, leasing has become an increasingly popular segment in car financing over the past few years. The advantages of car leasing extend beyond the perks of that wonderful ‘brand new car smell.’ Apart from no interest charges, you can drive away with less monthly fees and mechanical maintenance. Then, like your holiday hire car, you simply return it at the end.

Though predominantly associated with business, car leasing is an attractive prospect both for business and people. According to the BVRLA report, 61 percent of new contracts in the first half of 2018 were Personal Contract Hire (known also as leasing) and 35 percent were business contract hire.

Do You Need a Good Credit to Lease a Car?

Indeed, there is no general rule when it comes to the cheaper option. Yet, one thing to get clear from the start is to learn your financial picture.

As stated in the report of credit bureau Experian, about 22 percent of new-car leases were approved to customers with scores below 660. Still, a score of 680 provides a good buffer for the understanding of what to expect from an applicant.

Typically, the best leasing deals go to the people who present the lowest risk that they won’t pay as promised. Yet, if your credit score is below 620, it’s considered bad. But the good news is that it doesn’t often mean you can’t lease a car.

So, once you decide to lease a car, it would be wise to take care of your score before qualifying for a car lease. In case your credit is not in a top shape, expect to pay a higher lease factor.

Leasing vs Buying a Car with Bad Credit

When you are in the market for a new car, finding the best option is a must. If you are in some frustrating times and wonder if you have a bad credit is it better to lease or to buy a car, there are both pros and cons to consider.

One thing to remember, whichever route you choose – buying or leasing – make sure your payments are on time every month. At the end of the day, you will see the advantage of having a good credit. Sure thing, it’s a lot less expensive!

Did you know that in 2016, consumers leased the most vehicles ever on record in the United States?

When you purchase a new car, expect to pay the entire negotiated price of the vehicle using cash. In case you finance a new vehicle, you get a car loan from a bank, credit union or online lender with monthly loan payments. Another way to get behind the wheel of a car without the high cost of purchasing and financing is to lease.

By leasing, you are able to get a nicer car for the same monthly payments with the only difference – you are not an owner. You rent a car for a set amount of time, paying fixed monthly installments for the portion of the vehicle you use. For your information, about three out of every 10 new vehicles that leave dealers are leased.

Arguably, poor credit car leasing is a more appropriate option today than ever before. It’s not only a viable alternative for consumers with less than stellar credit, but it also is a good opt for those who prefer a shorter ownership cycle.

When it comes to millennials, nearly one-third of them chose leasing over buying. Thus, making up 12 percent of all leases in the US.

Did you know that in 2016, consumers leased the most vehicles ever on record in the United States?

How to Lease a Car with Bad Credit?

Anyway, leasing a vehicle with bad credit is another attractive option for people who value flexibility. According to Statista, 30,41 percent of the new cars in the US were on the lease in the second quarter of 2018.

Considering that leasing was once a priority for luxury car buyers and those with excellent credit, today you can lease a car with bad credit without much hassle. Better yet, bad credit car lease deals offer the same outstanding benefits as a regular lease. Yet, the key to getting approved for a car lease with bad credit is to prove your income and have a stable job history.

Without verification of the source and state of your income, it would be next to impossible to get approved for sure. Pay attention to the debt amount you have before qualifying for a car lease with bad credit.

Remember, even a large salary, might cause difficulty meeting your obligation to the lease if you owe several other lenders each month. This can reduce your chances as well. Yet, paying extra security deposits upfront can make you a more attractive candidate for a bad credit car leasing.

So, before you apply for a bad credit car lease, it’s not enough to know where you stand. It makes sense to make sure your credit report is error-free. Just for your information, a Federal Trade Commission report indicates that one out of five Americans has mistakes on his credit report.

In case you don’t want to drag your score down and negatively affect your lease approval, take care of your credit report.

Where Can I Lease a Car with Bad Credit?

Now, when you know you have a poor credit, you know your options. It can be tempting to jump at the first dealership offering good auto lease bad credit deals. While leasing a vehicle is going to be cheaper than buying one, there are still several things to do before you make your way into the dealership.

Shop around. The smarter you do your job, the better your chance to find a bad credit auto lease deal. In fact, there is a big number of certain dealers that are more likely to give you a good deal. Try to do your research. Consider all your leasing options before you sign for a bad credit car lease.

Now attention: according to a recent survey, lease payments are edging up at a faster clip than many loan payments. This means that it becomes much harder to find a good car lease deal for people with bad credit.

Remember, that the best car lease deals are reserved for those with higher credit scores. Again, if you are planning to sign up for a car lease in the months ahead, take extra care with your credit score.

Besides, it’s a good idea to score amazing deals on winter coats in February as retailers introduce spring styles. As a result, with the same shopping strategy, chances are you can find a better bad credit lease vehicle. Improve your chances of finding a good car lease deal with the last-year vehicles.


You know the right answer to the most popular question ‘Can you lease a car with bad credit?’ With a little help, the answer is Yes!

The smarter your way to a brand new car, the bigger the chance to get it at an affordable price.