Can I be denied a car lease??

Question

Like i know when you have bad credit usually you have to pay more for things in the long run such as a cell phone they may ask you to put down a safety deposit before issuing service etc......but if i were to apply for a car lease with less than perfect credit am i just looking at a high downpayment/interest rate or is it very possible that I may be denied the lease all together?

Answer 1

Absolutely you can be denied. Leasing requires far better credit than purchasing because people with poor credit (statistically-not meaning to insult anyone) are less responsible taking care of things like cars. Since the car is returned after the lease and sold...you see where I'm going.

Answer 2

The only way to know for sure is to apply. Keep in mind your income will also play a factor (qualifying to lease a Mercedes AMG is much more difficult than leasing a Kio Rio, for example).

Generally if you've got a steady income and your credit isn't really horrible (no recent repo's or bankruptcies) you should be able to qualify for SOMETHING, but perhaps not the car you're looking for and, as you said, less favorable leasing terms.

Answer 3

If your credit score is much lower than about 650, you could very easily be denied a car lease. There are very few alternatives in such a case because there are no subprime lease providers as there are subprime loan providers. Do you know your credit score?

Answer 4

Leases are harder to qualify for than loans. Since you don't really own the car you are leasing they are more picky about who gets a lease.

If you buy the car it's yours and the loan is your problem. If you lease, the car isn't yours and you have to give it back at the end of the lease. They only want their best customers to lease.

Answer 5

It is entirely possible that you could be refused. You have admitted you have bad credit. How does one get bad credit? #1 answer is....not making payments on time!

Now, why would anybody loan you money?