Can You Lease a Car with Bad Credit?

It can be difficult to lease a new car with bad credit, but difficult doesn’t mean impossible. So, if you’re wondering “Can I lease a car with bad credit?”, the answer is yes–at least in theory. If you’re determined to lease a new car with bad credit, you’ll need to demonstrate that you’re a good investment by offering a large down payment, proof of employment, and proof of your ability to pay! In many cases, buying a used car is simply easier and smarter for your budget.

What Qualifies as a Bad Credit Score?

The normal or average credit range is 600-750. Anything from 670 to 740 can qualify as a “good” score, and even scores as low as 580 can qualify as “fair”. Leasing is still possible with a fair credit score–although you should expect to pay a higher-than-average interest rate–but if it gets much lower, you’re going to run into trouble.

Since the dealership continues to own the leased vehicle after you drive off the lot, they can’t use it as collateral. That means they’re unlikely to lease to drivers with “bad” scores (579-300, or lower).

How Can I Lease a New Car with Bad Credit?

If you’re still interested in leasing a new car with bad credit, you’ll need to work harder than the average Stamford or White Plains lessee. Here’s what you can do to improve your chances:

• Check your credit score before you apply for your lease. Even if it’s poor, eliminating surprises puts you in a better position.
• Pay down as many of your outstanding balances as you can. Lowering your current debt-to-income ratio makes you more likely to get approved.
• Make the biggest down payment that you can make. The more you can pay up front, the less you’ll have to borrow, the better your chances of securing approval.
• Bring proof of income and be prepared to demonstrate your other major expenses, such as housing. Anything that shows you can make your monthly payments will be helpful.

Learn about certified pre-owned leasing and other car-buying tips with BMW of Greenwich if you’ve found this helpful.

Is It Easier to Lease a Car with Bad Credit Than It Is to Buy?

Do you really need to lease a new car with bad credit? Is it easier to lease a car with bad credit, or should you try to purchase a vehicle instead? For many Darien-area drivers who are struggling with their credit, financing and purchasing a vehicle presents a much clearer path forward.

For drivers with poor credit, it’s easier to buy a new vehicle than it is to lease one. That’s because the vehicle itself is used as collateral in these cases. What’s more, most dealerships don’t offer lease options on pre-owned models! Those who choose to buy will have our entire used car inventory at their fingertips. We even offer plenty of options priced under $20K, so it’s easy to lock in a monthly payment that works for your budget.

Can You Lease a Car With Bad Credit at BMW of Greenwich?

Our financing team has experience working with drivers from many different credit backgrounds. If you’re still wondering, “Can I lease a car with bad credit?”, you should know that it never hurts to ask! Reach out and let us know which model has caught your eye.