If you have never applied for car leasing or any other form of credit chances are
that you do not have good established credit, your job will first be to establish your credit and getting car leasing is one of the best ways to achieve this. Getting car leasing works best simply because as you begin to pay back your car leasing it improves your overall credit to the point where it can show up as good or above average once you have completely paid off your car leasing. The advantage of this is that you can then apply for other forms of credit such as mortgages, credit cards and student loans etc, all at low interest rates.
How to get car leasing with low credit?
This is an excellent question because many of the car leasing companies will simply turn down your request for leasing seeing that you do not have established credit. Car leasing companies today are not very eager risk takers and for someone who does not have established credit there is no way for them to know that you are a good or a bad borrower. However, having said that there are a few car leasing companies that do offer people with bad credit or un-established credit leasing. These companies will need a few things from you such as your bank statement, your pay slips and probably even a bit about your educational background, all of which allows them to construct a profile of what type of borrower you are.
What interest rates can you expect?
Once you get past the challenge of finding a good car leasing company willing to provide you with car leasing the next step is to really know what you can expect. Generally speaking car leasing companies will offer people who do not have established credit a higher than usual interest rates which can be subjected to a few conditions. One of the conditions is going to be that you pay your bills in them and probably after a year or two they will decrease your interest rates or vice versa. They will also see just how much of a risk you are and this will depend on your existing financial obligations i.e. if you are married, have kids, have dependent parents, single and living alone etc. They will also try to create a profile of you based on what car you are purchasing. High risk vehicles such as sports cars or drag cars will be subjected to a much higher interest rate as compared to cheaper economy models.
As a person who does not have established credit it is up to you to really find what works best for you. A self analysis of your financials should reveal if you can in fact afford the car you want to purchase or should you hold on for some time.