Can You Lease A Car With A Cosigner?
Leasing A Car With A Co-Signor
Do you have bad credit or limited credit? Have you been turned down for a car loan? Are you interested in leasing a new car? Have you considered all your options?
Maybe instead of answering all those questions, the question you really want to ask is: Can you lease a car with a cosigner?
I ran across this same problem not very long ago and have put this article together to help you save time in your quest for a car lease.
Related: How to Get Approved For a Car Lease
The Effect Of Your Credit Score On A Car Lease
If you have a low credit score, it can have a serious effect on your ability to lease a car with the most favorable terms. Some of the ways in which a low credit score can create problems during the leasing process include the following:
- May have to pay a higher down payment and/or security deposit
- Interest rate may be higher
- Can have an effect on the type of car you qualify to lease
While it’s possible you may not be able to lease the car you really want, once you are able to repair your credit you can shop for another one.
You need to come prepared even if you have a decent credit rating. This means taking the time to research the Kelley Blue Book and know the value of the car you are interested in leasing so you are fully aware of the fair price.
You need to research different dealerships and leasing companies if you have less than stellar credit. You may find it easier and more affordable to work with a company that specializes in working with customers who have poor credit.
A Co-signer Is An Option
Another option open to those who are interested in leasing a vehicle but have low credit scores is a co-signer.
How does cosigning for a car work? You ask someone who has decent credit to co-sign on your loan or lease.
You do need to remember the person who co-signs for you is putting their financial well-being on the line for you since the co-signer will be responsible for the payments if you fail to make them. In addition, if the car is repossessed it hurts the credit of not only you but also the person who co-signs for you.
Can you lease a car with a cosigner? The answer the question is contingent upon the qualifications of the co-signer. In order to qualify as a co-signer on a lease, the individual needs to possess the following:
* The co-signer’s credit score must be at least 700.
* A co-signer must be able to provide proof he or she has the ability to pay. He or she must provide proof of income in the form of pay stubs or if the co-signer is self-employed, tax returns.
* A stable residence and employment are also requirements for a person who co-signs on a lease. The length of employment and residence go a long way to improve the co-signer’s approval potential.
Related: How To Get A Lease With No Credit
What An Alternative To A Co-Signer?
Can you lease a car with a co-signer? While this may be an alternative for some people, what happens to those who have no one who is willing or able to co-sign? Does that mean you won’t be able to lease a car?
An alternative to a traditional lease if you don’t qualify and are unable to find a co-signer is taking over the payments on an existing lease. While the lessor will still check your credit, the requirements are not as strict as those in place for a car loan or a brand new lease.
While it is not easy to enter into a car lease if you have poor credit, it’s not impossible. In order to find just the right lease, it will be necessary to conduct research, shop around, and be willing to wait until you find the deal that meets your needs and fits into your budget.
When you find the right deal and close it, you will begin to believe in yourself and know all the hard work was well worth it.