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

All depends, most likely your looking at a high interest rate, = higher car payment.. of course that can be helped by putting a nice down payment, on the car, leaseing is ehh. I mean its good but should look at all the facts first, like how many miles will you be putting on etc... Good luck regardless :)

Answer 2

You can be denied a lease because leases are actually more difficult to get than an actual car loan.

Leases are not good options...I don't care what anyone says. They are a rip off when you start crunching the numbers on ALL the costs....which Auto-Financial Managers are very good at hiding.

I did a lease on a car before I got into mortgage Finance, and when I knew how payments, interest, etc worked, I was like "Holy Cow!". Never, ever again.

Their "selling point" is that you pay only for the portion of the car that you use and just give it back....sounds great, until you realize that unless the car looks like it did when you drove it off the showroom floor, they won't take it back. Normal wear and tear doesn't apply....they have the mileage restriction so tight that that alone...is reason enough to not return the car...and if you don't use all the miles? Forget it...they don't give you credit. Closed end leases? They say that you "know up front" what you will pay to buy it at the lease end, if you choose? That takes away ANY negotiating power that you have...and ensures them that they will get a set dollar amount. Their "Leasing Fee" is the same as a "Finance Fee"...it's just reflected as a dollar amount instead of a percentage rate to get around the law. This is the same concept that check cashing services use.

Now, do they still seem like good options?

If you can't afford to buy, wait until your credit score goes up so you can.

PS: I'll get alot of "thumbs down" from other auto-lenders...but what I am telling you is the God's honest truth. Leasing is a great option for higher-income earners and company paid cars (which is who they were ORIGINALLY designed for). They are not for the average Joe.

Answer 3

You may be denied a lease, or asked to pay a premium with less than stellar credit. OR, you may be offered a lease with a much larger downpayment in the front end.

Leases are all handled by financial institutions, and they use the same general credit concepts used when you apply for a loan.

MaryB is quite correct, BTW. Leases, especially for NEW cars, are a rather expensive method of obtaining a vehicle.
Even though I am well off financially, I refuse to buy a new vehicle or lease same. I prefer to purchase the two year old leased vehicles upon return, after the ORIGINAL owner/lessee has taken the financial beating which comes from ownership/leasing of the vehicle in the first two years.

I prefer luxury vehicles and most times obtain them at about half the cost of new when they are now two years old.

Answer 4

You can be denied a car lease the same as you can be denied a car loan. You have to be really careful on leases because even if they approve you the rate and term could be really high or with crazy stipulations and then when you go to turn the car back in you would end up owing a lot of money to them.

Answer 5

Yes you can be. Car leases are actually harder to get then many other types of loans.. BUT.. normally they always give you other options.

1. Getting a co-signer. Typically if you get a co-signer with established credit you will always get the lease.

2. A higher security deposit or larger downpayment.

Typically either of these will help you get a lease even with bad credit.

Answer 6

What the others have said is true, however, you might want to go one of the big three out of Detroit, because they are struggling. Thus, they will likely approve you for anything. They need your money. You should have no problem with getting a lease from them, it might be harder with someone like Toyota. Good Luck!!!

Answer 7

They can deny you if the wish to, if they do approve it, you will for sure be paying the higher down payment. You need to look into all the facts though if you go through with it paying a higher amount.. you will lose your butt in the end if you're not careful..


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Answer 8

car leases are bad ideas. the most expensive way to operate a car. not a good plan.