leasing a car?

Question

do you need good credit to lease a brand new car?

Answer 1

Typically, yes.

Answer 2

In leasing there is a clearer differentiation between "good credit and "bad" credit, more so than with a purchase contract. Generally a person who cannot qualify for a lease can qualify to buy. The reason has to do with down payment and the residual value on a lease. Usually a larger down payment helps in a buy but may not in a lease and this has to do with the lease residual.

The residual is a predetermined amount that is owed at the end of the lease, and is based on a predicted wholesale value. Lenders, lessors, and dealers predicate everything on wholesale value, the amount they determine the vehicle should be worth to some other agency. A lease company stands to lose far more on a lease than on a contract of sale at any given time during the life of the contract, and therefore are leasing to people with “better” credit scores.

The real concern for you is to simply apply for a lease and see what happens. You either can lease or you cannot lease. Check your own credit to see where you stand and as to how you rank in the credit world. Also, price out your vehicle at http://www.edmunds.com/tmv/new. You will get all the information you need in dollars. Go here to find the incentive program for the vehicle you want to buy

http://www.cars.com/go/advice/incentives/index.jsp;jsessionid=4A1HEIKAYR3PJLAYIEPU2VA?aff=national .

If you would like more information go to http://www.thebestdealofyourlife.com/CONTACT_car-buying-tips.html and eMail me for a courtesy copy (free to Yahoo Answer folks) of my #1 BestSelling book “the bestdealofyourlife”.

Besttoyou, Chuck
30 years/thousands of car deals
http://www.thebestdealofyourlife.com

Answer 3

As with anything, good credit basically reduces your payments. In a lease you're paying for the depreciation of the car over those years, with a limit set on mileage you may put on the car during those years.

Since you are paying for the depreciation costs, you'll be basically paying "interest" on the depreciation value of the car. The better your credit, the less you'll have to pay.

Answer 4

Yes... In fact, you need better credit to lease a brand new car than you do to purchase it.

Answer 5

I don't think you need good credit, but if your credit is not good, you may have to pay more interest and you'll probably be required to put down a bigger down payment.