leasing a car with low credit score?

one of my friends is going through a bad divorce. Her credit score is really low (about 600) but she is back on track now and is making good money and able to make a car payment.

Her current car is slowly dying. Does anyone have any experience with leasing a car with poor credit. Her parents are unable to cosign for her, but she would be able to put down a $2-$3,000 down payment. Is it even possible to lease a car with such a low FICO score?

Re: leasing a car with low credit score?

i personally know people that had to have parents or a sibling cosign a car for them. a friend had to have her father pay the entire lease payment up front, $12000, in order to lease a car for his daughter with a bad score.

Re: leasing a car with low credit score?

I think she should try. She has nothing to lose.

leasing a car with low credit score?

They will most likey approve her but her percentage rate may be higher then normal

Re: leasing a car with low credit score?

I've never leased so when she asked me I had no idea what to tell her. Does leasing work the same way as financing where if you have bad credit, you'll pull a higher interest rate?

She said she can't get anyone to cosign for her. She's having a really bad year and I was thinking about cosigning for her, but I think DH would kill me!

I told her to go around to some dealers and see what happens, but she said she's afraid to apply and be rejected that it would lower her score even more?

Re: leasing a car with low credit score?

Posted by Mill188

I've never leased so when she asked me I had no idea what to tell her. Does leasing work the same way as financing where if you have bad credit, you'll pull a higher interest rate?

She said she can't get anyone to cosign for her. She's having a really bad year and I was thinking about cosigning for her, but I think DH would kill me!

I told her to go around to some dealers and see what happens, but she said she's afraid to apply and be rejected that it would lower her score even more?

leasing a car with low credit score?

Her interest rate will likely be higher. Possibly even with a cosignor, because I think they take the lower of the scores. I know they did tin my BILs case anyway. He pays almost $500 a month to lease an Accord.

Yes - every credit inquiry will lower her score.

I would never cosign for a friend. Money and friendship do not mix, IMO.

Perhaps she can do some credit repair. Has she read a recent report? Is there anything she can dispute? Sometimes there are mistakes that if disputed and eliminated will increase your score drastically.

Re: leasing a car with low credit score?

If her credit is really bad she can go to one of those car dealers that finance for people with bad credit. Yes, the payments will be higher but other than buying a car in cash I don't see any other options.

As far as co-signing, I would sooner give someone money than cosigning for anyone.

Re: leasing a car with low credit score?

Her best option would be to buy a $3000 car if she does have that cash.

Re: leasing a car with low credit score?

Re: leasing a car with low credit score?

leasing a car with low credit score?

My first lease was in my early 20's and my credit wasn't so good. I got approved and by making the monthly payments on time, it helped my credit score too.

Re: leasing a car with low credit score?

Honestly I think leasing is a personal decision. Many people, self included, choose to lease because it makes financial sense to have a reliable vehicle with minimal maintenance vs. what is often not the case with a used car that costs a few thousand. My SUV is our family vehicle and we lease that vs. DH truck which he bought and paid off and will run into the ground with his job. Then he will buy again. ETA: I would imagine it would be even harder coming up with $$ for hefty car repairs if you are single and struggling. I was making thousands of dollars in repairs for my old car that was paid off and felt enough was enough. So far knock on wood have not had issues with either lease I've had.

Message edited 3/17/2014 6:32:44 PM.

Re: leasing a car with low credit score?

Re: leasing a car with low credit score?

Posted by Straightarrow

Posted by MrsM84

Posted by iluvmynutty

Her best option would be to buy a $3000 car if she does have that cash.

Agree 100%. I always see pretty decent cars for sale at local auto mechanic shops for about $3-4K. I think this is a much smarter financial decision for your friend to own the car outright and not have to worry about monthly payments.

I disagree.

I'm in a similar place, but with no credit. But as a single woman buying a car for 2-4k isn't really worth it bc I'd spend all my money and be buying a car w a lot of miles, issues.

Look on craigslist, there's not a lot in that range. I saw a car that drove only in reverse for 2k!!

Re: leasing a car with low credit score?

Re: leasing a car with low credit score?

Posted by Straightarrow

Posted by MorningCuppaCoffee

I think it was you who posted about this when you were contemplating leasing vs buying and what was available in that price range.

Yup

Re: leasing a car with low credit score?

There are many finance options for bad credit. You might pay more in the end but they will approve you.

Re: leasing a car with low credit score?

It also depends what she gets. Might be a good idea to lease a basic vehicle and model vs. going in for all the bells and whistles. FIL has always done this for one of my SILs and I'm sure it was an affordable payment. But he got her initially a small Honda CRV and she now has the small Jeep....I think the Compass?