Buying A Used Car Or Leasing A New Car?

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Buying a Used Car or Leasing a New Car A lot of people love the thought of leasing a vehicle since you are essentially just paying to rent it for an extended period of time, but if you have bad credit it can be hard to qualify. Now when you walk in with bad credit dealers are honestly not going to be too thrilled and if you tell them that you want to lease a new vehicle instead of taking out poor credit used car financing then it will probably get tricky. Before you go out and start looking for anything though you absolutely need to make sure that you are well read up on anything and everything that can occur. So knowing the differences between the two will be essential to making sure that you get a car the safe, efficient, and cheap way.

Buying versus Leasing

Buying is going to be a pretty obvious thing, it is where you are financing the entire cost of the vehicle. You will have to pay the full price of the vehicle plus the interest that is set up for you. This will range varying on many factors mostly involving your credit score though. When purchasing it is good to know that bad credit applicants will require a down payment typically. This will usually be 10% or $1,000 whichever is less (this of course may be different with your dealership though). Usually when you have bad credit this is going to be your best bet to get into a vehicle.

In comparison by a monthly payment basis this is going to be a much cheaper option. This is a very viable option if you have good credit, but if you have a poor credit score then you will not have a very good chance. The reasoning behind is if the person who took out the lease stops making their payments and the vehicle becomes repossessed then the dealer will lose drastically. When all is said and done though you will not however own the vehicle at the end of the lease so be prepared to either make a purchase or begin another lease.

Getting a Vehicle

Because of the high risk when it comes with bad credit and leasing so most dealers are going to reserve leasing options to those with excellent credit. Many times if you have bad credit you will come across the term "rent to own" or "lease to own" this is not the same thing. This will be through a buy here pay here dealership and will essentially be the same as a bad credit auto loan except that you are unable to restore your credit. So with that being the case it is best to apply for online financing and make sure that you get into a vehicle while building your credit. This way you can potentially lease in the future if you so desire. We here at exist to get you into a car no matter where you live in the United States. So if you are ready to get started apply today!

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Do you meet the basic qualifications?

  • At least 1 year with current employer
  • A minimum income of $1,500 per month
  • No repossesions within the last year
  • Any bankruptcies must be discharged
  • Money down may be required, but not in all cases
  • Must be a current resident of the U.S. or Canada