Leasing a car can be an appealing option if you like getting new vehicles frequently. If you like to get a new car every few years, a lease may be more appealing than buying a car. However, your credit score will still need to be good not only to ensure you pay your lease, but also because you’re being trusted return the car in good condition and within the required mileage.
A closed-end lease means you have the car for a set amount of time (usually three years) and agree not to go over a set number of miles. When the lease is finished, you return the car and have no further financial obligation as long as it is returned in good condition and within the required mileage. If you return the car in poor condition and over the agreed-upon mileage, you will
be penalized with fees.
Credit Score Requirements
According to Experian. the average credit score needed for a lease is 717, although the exact number varies. If your score is low, you will likely not be approved or will pay high interest rates. However, you may be able to get a lower interest rate if you put more money down upfront.
Getting a lease takeover is an alternative option for those with a borderline credit score that is too low to get approved for a lease or good interest rate. This involves taking over a lease from someone who has not carried out the full length of the lease, similar to subletting an apartment lease. The takeover will need to be approved, but the terms and requirements will most likely not be as strict as getting the lease on your own.