Car leasing appears to be an appealing option when you are looking for a great deal on a car. The car is brand new, you have a low monthly payment and you can move on into another lease or walk away completely once the lease term is up.
Why is leasing so popular? Well, it’s simple, convenient, and you get the newest vehicle with the most up-to-date features. Also, because you only have the car for a short period of time, the amount of maintenance is minimal. And, some lease offers don’t even require you to have a down payment. However, there is a catch: Many lease offers are only available to those who have good or great credit.
The reason that getting approved for a lease might be difficult for bad credit applicants is because lease companies have stringent requirements concerning who they will approve.
Leasing Is More Difficult When You Have Damaged Credit
If you have a bruised credit score, it is very likely that anyone who is willing to approve you will want a high down payment or security deposit. And with that, they will also present you with a higher interest rate on the lease contract.
But, before you get too discouraged, does a lease even suit your actual driving needs? Consider your driving habits and long-term finances.
- You will always pay.
Going from one lease contract to another will ensure that you will constantly have a car payment. Keep in mind that newer cars are built to last longer, and when you finance one instead of leasing a vehicle, you can get years of life out of it after you have paid off the loan.
- How much do you drive?
The average mileage per year limit on a lease is 15,000 miles. If you usually drive at least 15,000 miles per year, you run the risk of going over that limit. It may surprise you just how much your trips to work and run simple errands add up.
- How well do you take care of your car?
Do you typically make time to clean out your vehicle and maintain the upholstery? Wear and tear limitations on leased vehicles could mean extra fees at the end of the lease term for any stains or damage done to the interior of the vehicle. And even though the maintenance level is low for a lease, you will want to ensure that the exterior doesn’t suffer from issues like scratches, dents or rust.
Auto Financing May Be the Better Option
If leasing is not an option for you, a recent, low-mileage used car may be a better choice. It gives you the opportunity to get some of the more current features at a decent price. While the interest rate may still be higher than average, you will be improving your credit history for future purchases.
Finding the right dealer that will work with your unique financial situation will take time if you're trying to do it yourself. That’s where Drivers Lane can help. We find the dealer that can work with your financial situation so you don't have to. All you need to do in order to get started is complete the simple and fast online application.