Can You Lease A Car With Bad Credit And No Money Down?


Do you need a car? Do you have bad credit? Do you not have money for a down payment? Can you lease a car with bad credit and no money down?

It is rare, but yes you can! Last year, I was in the same situation. I had just totalled my car, had horrible credit and had no money saved for a new car.

Before I panicked, I did some research and I am here to share that information with you. Here are some tools and tips in order to get the best deal on your new car.

Related: How To Get A Lease With No Credit

Where Do I Start?

Before you get into your new car, you will have to go into the process with knowledge. First, I suggest you check your credit score to see how bad your bad credit really is. I use CrediKarma. This site is free to use and gives you your credit score as well as suggestions for fixing your credit. suggests that you print out a copy of your credit report to take with you to dealerships so that they do not have to pull your credit themselves. Each hard inquiry on your report can further damage your score.

Related: Can You Lease A Car For A Year? Would Short Term Leasing Be Better For Me?

Take A Good Look At Your Finances

Before shopping for your newly leased car, make sure you know how much you are willing to spend each month. Take into account that adding a car payment to your other bills may change your lifestyle.

Add up all of your monthly expenses and find out where you have some wiggle room. When you begin looking for a car, do not stray far from the low end of your budget.

Making Room In Your Budget For A Car

Some great ways to make room in your budget for a car payment include; cooking meals at home rather than eating out, cut back on unnecessary expenses such as entertainment, or try having a no-spend month.

You know how much you are able to spend monthly on a car payment, but by trying these three things, you have a little more breathing room.

This may also help you save so that you can put money down if needed, even if it is not much. Once, you know that you can afford to lease a car, it is time to look into acquiring your new car!

Have Realistic Expectations

Most car dealerships look for customers with awesome credit and lots of money down. When you have good credit, you are considered less of a risk of defaulting on your loan.

Knowing what is expected of a customer can help establish your realistic expectations. Look for cars that are less expensive or older. Dealerships may be more likely to lease to you for a less desirable car.

Do Your Research

You are already on the ball on this one, just by reading this article. Learn as much as you can about how to lease a car with bad credit and no money down and about the dealerships near you.

A good book to read on the subject is How to Buy or Lease a Car & Win! This book can be found on or by clicking the link. Also, research dealerships around you by calling and asking what is needed in order to lease with them.

This will save you time and disappointment. I didn’t do this and wasted an entire day at a dealership, just to find out that I was not approved!

Shop Around

Once you have called dealerships, compare the offers and find the best one for you. Most dealerships will charge customers with bad credit high interest rates. Compare these rates and chose the lowest ones.

The higher the interest, the more money you will pay in the long run. Don’t get caught in a lease that has you paying the same amount as you would if you were to buy the car!

You may also be able to get the car you want at a better price by bringing the offers from other dealerships with you. Some dealers may adjust their price if they see that you have done your research. They want you to lease with them and may work with you.

Be Prepared For Anything

You have done your research and have found the car and dealership you have been looking for, but when you get there, things may change. Dealerships have many salesmen and what one offers you, another may not. Always ask for the person that you spoke on the phone with and deal with them.

This way, there are less surprises. Though it is possible to find that perfect dealership that will allow you to lease a car with bad credit and no money down, be prepared to pay for taxes, tags and other fees. These expenses are not mentioned until you are about to sign the paperwork.

If Dealerships Are Not For You

While doing more research, I came across this article on the Huffington Post website. The Huffington Post suggested something I never thought of before, you can take over another person’s lease! Say you know someone who already has a lease with a dealership but is struggling to make their payments.

You could offer to take over their lease for them. This can save you a lot of money and most likely, you won’t have to put any money down!

Related: What Are The Advantages Of Leasing A Car Instead Of Buying One?

Still Not Sure About Leasing?

You have done your research and know your options, but you still aren’t sure if you want to try to lease a car? It’s worth a try, the worst they can say is no!

There are so many advantages to leasing a car. According to The Truth in 7 Minutes, leasing a car may even be better than buying a car! It is less costly, you can lease a new vehicle every few years, and the car that you are driving will always be safe because maintenance is mandatory and usually free.

In conclusion, as long as you go into a leasing situation with all the facts, it should be a breeze! Just keep these things in mind.

  • Take a Good Look at Your Finances
  • Make Room in Your Budget for a Car
  • Have Realistic Expectations
  • Do Your Research
  • Shop Around

For a quick video on leasing a car, check this one out. If you have any questions, comments or concerns, please feel free to comment. I hope this article helps you out!

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