Buying a car is definitely something that is not for everyone. Some people do a lot of driving and do not want to have to deal with all of the wear and tear of owning a vehicle for its lifespan and others will just like to have a bit of variety in their life and switch out their vehicle every couple of years. That is going to be typical leasing though and if you have a bad credit score then leasing a car will usually mean something completely different.

There are two different things that can happen when you go to a dealership and look for leasing. They will either truly have leasing options or they will have rent to own options. Both may sound similar especially because renting and leasing tends to be used interchangeably throughout all aspects of life but here you need to be very careful with what you are getting into otherwise it can create a lot of unnecessary issues for you.

Leasing a Car

Now typically it is going to be extremely difficult to lease a new car with a bad credit score. I suppose it is possible, but it does not happen very often and it will be much better for you to raise your credit score first. That being said lets move onto what leasing actually is and how it works.

If you are wanting to lease a vehicle it seems attractive because typically the monthly payments are going to be cheaper than typical financing payments because you are not purchasing the vehicle you are just paying for it the time that you use it. Most leasing deals are also not going to require a down payment unless it involves some kind of a special program then potentially one may be required. It goes without saying though that less money will be involved with leasing thus it will be considered a high risk option by dealerships. This will mean that dealerships only are going to consider this option when working with the most qualified of credit applicants. So if you have bad credit it is probably not going to be an option for you unfortunately.

Rent to Own (Lease to Own)

If you do have bad credit there are dealerships that will try to spin this your way and claim that it is the same as leasing a vehicle, but it will in fact be very different. They may also try and make it seem the same as a bad credit used car loan, but it will actually not be because you are unable to restore your credit this way. This is also going to be known as buy here pay here.

It works like this, you will make your payments to purchase the vehicle directly at the dealership. Typically these payments are going to be weekly or bi-weekly. Usually the second that you fall behind on these payments as well they will repossess your vehicle, so it can be a tremendously risky idea to work with these dealers. It is very likely that you will have to put down a very high down payment as well.

There tends to be a lot of problems when it comes to these dealers. There are some situations though where this may be an option for you. If you have significantly low credit and need to get a vehicle then this may be something that you would want to look into further. Before doing that though you should apply for an auto loan on FundingWay.com. We help to make sure that anyone and everyone that requires financing will have the best shot possible at getting approved. It takes seconds to apply and in no time you will get just what you need.