Common Questions about getting a new car with bad credit
1. Do I Definitely Need a New Car?
If you lease a car with bad credit, it will always be the case that you will pay a higher rate than someone with good credit. This protects the bank that is lending you money.
That's why if it's already difficult to find extra money for your typical budget, you should only lease a car, truck, or SUV with bad credit if the situation is actually an emergency.
Assess your situation to decide if you have other options such as fixing your current vehicle, carpooling with friends or colleagues, or taking the bus for a few months or more while you work on strengthening your credit score.
Just a few months of paying bills on time can increase your credit score. If you are able to keep from buying or leasing a car for a month or two, you may end up with a high enough credit score to get a lower interest rate.
2. What's My Current Credit Score?
Do not simply assume you have bad credit. Find out for yourself what your credit score is, what has had an impact on your credit, and make sure there is no suspicious activity on your report.
Next, bring your credit report with you when you talk with the finance professionals at WillistonAuto.com. They may be able to work with you depending on the reason for your low credit score.
Keep in mind that you can receive a free credit score once annually.
3. If You Can, Go With a Shorter Lease Contract
Interest rates are usually smaller for shorter term leases, which means that you will end up paying less for your vehicle while you lease it.
This also means that when you are done making car payments, you can concentrate on paying off other debts and continuing to strengthen your credit score before your next purchase.
Then you can think about leasing another car with a lower rate, or buying one with Chevrolet, Buick, GMC finance plans, and getting the best interest rate possible.
4. Should I Search for a New Car, a Late-Model Car or an Older One?
You might believe that an earlier year model car will cost less, but actually interest rates are higher on vehicles from many years ago.
Consider looking for leases on new cars at first, and then newer pre-owned cars, since these are the vehicles that typically feature the lowest interest or lease rates. Do not forget that some states forbid leases on pre-owned cars.
Receive the most favorable lease deal you can, depending on how much you can afford to spend on a monthly payment.
It's still possible that you could find a better offer on a used car, so make sure to evaluate all of your options before making your final decision and signing the leasing agreement.
5. Should I Try to Get a Cosigner?
Depending on your situation, getting a cosigner for your lease might be the right option to get a better rate. Consider looking for a cosigner if any of the following apply to you:
• You have a low credit score.
• Your income is lower than the minimum required for a loan.
• You don't have a steady income.
• You have a high debt-to-income ratio.
Cosigning on a car lease can be a big responsibility. The cosigner will be held accountable for making payments for you if you aren't able to, so only have a cosigner if you are confident you can make monthly lease payments on time.
If you can make your monthly lease payments, getting a cosigner may help lower the sum you have to pay on your lease.
We hope this short guide has been helpful. If you have more questions about leasing a car with bad credit, simply call our Chevrolet, Buick, GMC finance staff at (701) 577-2927. With good or bad credit, we would be happy to assist you with leasing a car in Williston.