How does leasing a car work if you have bad credit?

Is there any way to make leasing a car work when you have bad credit? I want to lease a car but my credit is really bad right now.

Answer
It’s more difficult to lease a car with bad credit, but try not to worry! It’s definitely doable. Here are some tips for leasing a car with bad credit:
  • Keep your car hopes low. You probably won’t get your dream car with bad credit. Try to keep realistic expectations and remember that cars are meant for transportation.
  • Get a cosigner. Finding someone to cosign your contract can significantly improve your chances of leasing a car.
  • Pick the right car and time. Since dealerships show new cars every year, they’re often eager to get rid of old models. Picking an older car towards the end of the year can raise your chances of getting a lease.
  • Collect information to verify your ability to pay. You’ll have a much higher chance of leasing a car if you can verify a steady income. If you can’t, providing consistent payment histories for other leases or debts can still help you seem lower risk.
  • Make a large down payment. While people with good credit can usually get away with a minimal down payment, those with bad credit should be prepared to pay upfront.
Remember, you’ll also need an insurance policy for your new car. To make sure you get the coverage you need at an affordable rate, try Jerry.
A licensed broker, the Jerry app can help you find and compare quotes from over 50 top providers for free. Users save an average of nearly $900 a year on car insurance with Jerry—and it only takes a minute to sign up!
Liz Jenson
Answered on Oct 27, 2021
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