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.