How to lease a car with no money down

Written by valencia higuera
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When leasing an automobile, most people are interested in receiving the best deal possible, which generally involves getting the lowest rate and the best price. Buying or leasing a car with a down payment can lower the amount financed and reduce monthly payments. However, down payments aren't always required when leasing a vehicle. In fact, a large number of people lease a car without a down payment. This provision is ideal for individuals without a huge savings or for people who want to retain their savings.

Skill level:

Things you need

  • Credit report
  • Co-signer

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  1. 1

    Review your credit report. No-money-down leases are generally available to individuals with good or acceptable credit. Order a copy of your credit report and FICO score. Your credit score determines the rate you receive on the automobile and whether a dealership or finance company will lease a car to you without a down payment.

  2. 2

    Increase your FICO Score. If you have a low FICO score, postpone leasing a car for three to six months. During this time, establish a plan to improve your low score, which will help you qualify for a no-money-down lease. Make every effort to pay your bills on time and, if possible, eliminate a few debts. Simple measures can add 20 or more points to your FICO score.

  3. 3

    Assume a car lease. Find someone with a car lease and agree to take over their payments. You'll have to qualify for the lease, and the leasing company will evaluate your income and credit report. However, you can assume a lease with no money down.

  4. 4

    Anticipate a higher interest rate and monthly payment. While leasing a car with no money down is convenient, these types of leases involve higher payments and interest rates. Having a down payment lowers the lease price, which lowers your payments. Additionally, individuals with down payments generally obtain a reduced rate, which can lower their payments.

  5. 5

    Get a co-debtor. Dealerships and leasing companies are leery of people with low credit scores and no credit history. They'll lease cars to these individuals, however, they normally require a down payment of at least 10 per cent of the lease price. On the other hand, leasing a car with a co-debtor can persuade a leasing company to agree to a no-money-down lease. For this agreement to work, the co-debtor must have an excellent credit history.

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