Yes, you can get a car lease with bad credit, but it is significantly more challenging and expensive. Lenders view applicants with low credit scores (typically below 670) as high-risk, which leads to stricter requirements. You will likely need a larger down payment, face higher money factors (the leasing equivalent of an interest rate), and have a more limited choice of vehicles. However, specialized subprime lenders and certain dealerships work with individuals in this situation.
Your chances improve if you can demonstrate a stable, verifiable income and offer a larger upfront payment, often called a capital cost reduction in leasing terms. A co-signer with excellent credit is the most effective way to secure approval and better terms. It's also wise to focus on brands known for more flexible credit approval, though often for their less popular models.
The financial impact is substantial. The money factor directly influences your monthly payment. For a lessee with excellent credit (a FICO score of 720+), the money factor might be equivalent to a very low annual percentage rate (APR). For someone with poor credit, that rate can be several times higher.
| Credit Score Tier (FICO) | Lease Approval Likelihood | Estimated Money Factor (approx. APR equivalent) | Typical Down Payment Requirement |
|---|
| 720+ (Excellent) | Very High | 0.00125 (3.0% APR) | $0 - $1,000 |
| 680-719 (Good) | High | 0.00167 (4.0% APR) | $1,000 - $2,000 |
| 620-679 (Fair/Subprime) | Moderate to Low | 0.00250 (6.0% APR) | $2,500 - $4,000 |
| Below 619 (Poor) | Very Low | 0.00333+ (8.0% APR+) | $3,500+ |
Before you shop, get a free copy of your credit report to check for errors. Be prepared to negotiate and read every line of the lease agreement carefully. Sometimes, opting for a less expensive car loan to rebuild your credit before leasing can be a smarter long-term financial move.
