Posts Tagged ‘lease a new car with no credit’

Can you Lease a New Car with No Credit?

Wednesday, May 16th, 2012

Leasing a car with no past credit history can be difficult. Car dealers typically want to lease vehicles to individuals who are most likely to make their lease payments on time every month and who are least likely to default on their monthly payments. When you have no credit established, it isn’t as easy to prove to the dealer that you will not default on your car lease because you have no established credit to show the history of your debts and payments on various credit accounts. Although leasing a car with no credit can be difficult, it isn’t entirely impossible. In fact, there are several methods through which you can successfully lease a car despite the fact that you have not established any credit.

One way to successfully lease a car with no credit is to show proof of your income to the dealer. Many times, even when you have an excellent credit score and an excellent credit history, dealers will ask to see bank statements or paycheck stubs in order to prove that you have the financial capability to make the monthly lease payments. Your goal as someone with no established credit is to prove to the dealer that you have a stable job and/or a stable income in order to make the monthly lease payments.

You should also consider asking a close friend or family member to act as your cosigner. It is important to remember that your cosigner will be equally responsible as you will be for making the car payments every month until the end of the lease. Therefore, if you lose your job and are no longer able to make your lease payments, his credit score will suffer just as yours will. You should pick a cosigner who has not only established a long credit history, but who also has a relatively high credit score.

Because you want to lease a car with no credit, expect to pay more. The dealer will most likely require you to make a higher down payment along with a higher monthly payment in order to offset the risk that is associated with someone who does not have any established credit.