Leasing a car is a popular alternative to buying if you live in Seattle and are looking to drive a new vehicle every few years. However, leases are usually only available to consumers with good credit, so it can be difficult to qualify if your credit is bad. Even if you are able to get a bad credit leasing deal, you might be better off financing.
Bad credit car rental terms
What does it take to get a car lease with bad credit in Seattle? To get started, you need a credit score that is in the subprime (501 to 600) or non-prime (601 to 660) range. If your credit score is below 500, it is almost impossible to qualify for a lease.
In addition to having a good credit rating, lessors bad credit leasing will probably ask for additional documents in order to approve you. These may include:
- Proof of income – A recent computer generated pay stub showing cumulative income for the year.
- Proof of address – A recent utility bill in your name showing the address on the request.
- Personal references – A list of five to eight personal references with names, addresses and telephone numbers at home and at work.
- Security deposit – You must pay the first month’s rental in advance, and you may be asked to make a security deposit (or multiple security deposits). Not to be confused with a deposit, you get the security deposit (s) at the end of the lease as long as everything is in order on the vehicle.
When it makes sense to buy instead
What if you bought a car? If you’re struggling with bad credit and worried about leasing, know that it makes more sense to buy rather than lease a vehicle in Seattle in some cases.
It is easier to get approved for a car loan with bad credit than with a lease. Plus, you have the ability to improve your credit score if you are able to make all of your payments on time. This can help put you in a better position to rent in the future.
Bad Credit Car Buyers in Seattle You can usually benefit from subprime auto loans, which are offered by subprime lenders who work through special financing dealers. These lenders take your credit into account and typically require a down payment (usually $ 1,000 or 10% of the vehicle’s selling price, whichever is lower), but take into account external factors such as income, stability of the residence and employment to approve distressed buyers.
The downside to financing through a subprime lender is the interest rate. Most car buyers with bad credit receive an above average interest rate, which increases the overall cost of a loan. The good news is that you can lower the overall cost by making a larger down payment or, in some cases, adding a co-signer or co-borrower to the loan.
Ready to get your next car in Seattle?
Whether you decide to lease or buy your next vehicle, it’s important that you know where your credit score is and what options are available to you in Emerald City. When you are ready to start the process, Auto Express Credit is here to help.
We work with a nationwide network of dealers in Seattle and across the country who know how to help people with bad credit get financing. Let yourself be guided to a local dealer! Start by filling out our simple and free auto loan application form.