When a client approaches their broker with questions regarding leasing agreements, they should be well informed on all aspects of leasing agreements. A client will need to have a credit score of at least 700 for the best chance of becoming approved to lease a car. However, depending on the individual broker, clients with credit scores lower than 700 may be approved to lease a car. Clients with credit scores ranging from 620 and 679 may be able to obtain approval for a car leasing agreement. It is recommended that clients work on improving low credit scores before they apply for a car leasing agreement for the best chances of receiving approval. Clients can easily calculate their lease payments by using an online Leasing Calculator.
Pros of Leasing a Car
- Clients will have the ability to upgrade their vehicles often
- Clients who lease a vehicle will be responsible for paying monthly lease payments that are generally lower than a financed vehicle
- Clients will not be responsible for funding maintenance or repairs of the vehicle
Cons of Leasing a Cars
- Clients will be limited on the mileage they travel with a vehicle that is leased
- Clients will not be able to build equity in their leased vehicle as they are not the owner
- Clients who excessively use their car that results in wear and tear have the potential of facing high fees