Hillview Motors Answers the Important Question, “Does Credit Impact Leasing?”
When a customer applies for a Jeep lease at Hillview Motors, full transparency is assured throughout the financing process. This includes a full explanation of the costs included in the lease, an overview of the lease term and payment requirements, and how credit impacts leasing.
What are the Typical Credit Requirements for Leasing a Car?
The credit requirements for leasing a car from our local Chrysler dealership are different than the requirements for purchasing an automobile. Most notably, leasing and buying differ in terms of the risk to the financing provider. Leases generally represent more risk because the customer typically has less equity in the vehicle than he would if he were buying with a loan.
Do I Need Good Credit to Lease a Car?
Leasing a new Jeep SUV typically requires a smaller down payment than if you were to purchase. Also, a lease is usually paid off slower. For example, a three-year lease only pays off about 50 percent of the value of the vehicle, whereas a three-year loan to purchase a car pays off 100 percent of the value.
This means that, at any point in time during a lease, the current market value of a vehicle is less than the amount still owed on the lease. So if the lessee should default on the lease and fail to pay, the financing company loses money. Therefore, someone with bad credit may have more difficulty getting approved for a lease or be compelled to pay a higher interest rate than someone with good credit.
Ways to Improve Your Credit Score
Before attempting to lease a car at Hillview Motors, we recommend that you obtain your credit score and identify areas for improvement. This not only reduces the element of surprise when you go to lease a vehicle, but it also gives you time to correct any problems and raise your credit score to a more favorable level.
Moreover, some of these problems are easily correctable – for example, paying off any loans that have a small balance or getting better about making your payments on time.
Get a Great Lease at Hillview Motors Today
We believe that car financing should be available to everyone, regardless of credit score. We have strong relationships with local and national lenders, allowing us to tailor a leasing solution to each customer’s specific needs. Contact us today for more information and our latest Dodge lease specials.