When applying for a luxury auto lease, your credit score is incredibly important. While leases can be a great deal, they also require higher scores than a loan, since you’re not actually buying the car with a downpayment.
Luxury car leases also require a higher credit score than standard car leases, since the vehicles in question are more valuable.
If you’re looking to get a good deal on your luxury auto lease, then, one of the biggest factors influencing the terms of your deal will be your credit score. Below we’ll explain the minimum credit score you should have before applying for a lease, how to raise your credit score, and more.
Generally speaking, most people will be able to get a car lease. However, the favorability of the deal will vary widely depending on how good your credit score is. As well, the lower your score, the more rejections you’re likely to face before finding someone willing to lease to you.
For most people, it’s not recommended to apply for a car lease if your credit score isn’t at least 620. If your credit score is 700 or higher, you’re in the A-Tier. This is good and your applications should be accepted the vast majority of the time.
However, people with a credit score of 750-850 have an A+-tier credit score. This puts you in the most favorable position when negotiating with a car leasing company.
If you’re looking to lease a luxury vehicle, the chances are high that you’re in good financial standing. What, then could explain a bad credit score? There are a few potential culprits.
The first is that you may not have enough credit history. This sometimes occurs when people have enough money to pay for most things in cash: even though your income or assets may make you feel like you’re a safe bet, you still haven’t established a track record.
If lenders can’t see a history of how you handle credit, you’re likely to be lumped in with borrowers with a bad credit history. This is because the unknown is considered a risk.
You may also have too many “hard hits” on your credit report. Each time you apply for credit — this includes credit cards, car loans, home loans, and more — the lender will take a look at your credit score. This then lowers your score temporarily.
While price shopping can be advantageous, it’s important to ensure you’re not missing out on good deals because there are too many hard hits on your report. One way to solve this is by getting a dated, hard-copy of your credit report. This allows lenders to understand the current state of your credit without putting a hard hit on it.
Finally, there may simply be some inaccuracies on your report. There are three different credit bureaus, each of which compiles their own report. If there are any noticeable differences between any of the three reports, it’s useful to determine where the inaccurate information is coming from.
It’s also wise to look at each of the bad marks on your credit report to determine if they are accurate. If they aren’t, you can contest them and get them removed.
If so, you’ve come to the right place. At Redzone Auto Leasing, we understand what a hassle it can be to negotiate with dealerships. As well, we know that it can be difficult to get a favorable deal if you don’t understand the various tricks salesmen use to give you a lesser deal.
Whether you have questions about our service or you’re ready to start the leasing process, you can reach us at (248) 859-0009.
