Leasing a car is a lucrative option for people. In particular, if you are 18 years old and have limited funding options, leasing gives you the opportunity to drive a newer car without the commitment of a long-term purchase. But, the question is, can you lease a car at 18 with no credit? The very straightforward answer is “Yes, you can lease a car without having a credit history.” It can be difficult, but not impossible. In this article, we are going to explore the available options and challenges while pointing out some relevant and crucial aspects in this regard. Let’s dive deeper.
Why Leasing is Better Than Buying for 18-Year-Old Drivers?
Though full-fledged ownership of a car is always charming, the leasing option has some superior competitive advantages over buying. Below are the details.
- In the case of leasing a car, you are entitled to pay on a monthly basis. This is very attractive for drivers crossing the border at age 18, who are usually just starting out and have limited income.
- When you lease a vehicle, it does not require a long-term commitment. A lease can last for six months to multiple years; it depends on your plan and requirements. Here, you are paying for only the respective time period. On the other hand, buying a car means welcoming a car loan, which can even last up to seven years.
- If you are passionate about familiarizing yourself with new technological integrations in vehicles, leasing is the best option. Lease a car for one year only, and next year, go for a new lease with a new car equipped with updated technologies. For newly purchased cars, this scenario is a bit boring; you are bound to stick with the old technological inclusions for a longer period. Well, you can go for an upgrade, but it will cost you a lot.
- The initial cost of leasing a car is far less than the cost of buying a car. Here, the considered initial costs are the down payment, taxes, etc. This competitive advantage allows you to drive a more reliable vehicle without paying a higher amount.
- After purchasing a car, you become fully responsible for the maintenance work. Whereas, for leasing cars, most of the leasing companies provide a certain number of free maintenance services per year.
- As an 18-year-old, you are not yet settled. You are just going to start your academic and professional journey. This can make you a frequent mover from state to state and from country to country. In this case, leasing is the best option, allowing a higher degree of flexibility.
How to Lease a Car at 18 with No Credit History?
Well, we have already given a positive answer to your question of can you lease a car at 18 with no credit. But, how? Here, we detail some of the most suitable options. Let’s check those out.
1. Take Assistance from a Co-Signer
Find someone in your family or among your friends who has a good credit score. Consult with him and her about your decision on car leasing and provide details of your payment plan. Upon agreeing to become a financial risk taker for your leasing, go to the selected car leasing company to sign the agreement.
2. Build up a Credit Score
Well, this process may take a longer period after you make the decision to lease a car. For this approach, you have to spend at least 1 to 2 years building a good credit score. Start with credit cards and small loans; pay the installments on time. Please note that it will be wiser if you use the credit card and small loan to purchase long-term assets, not luxury items.
Here, we know that with the allowable amounts, you won’t be able to purchase properties, gold, etc. We are talking about investing in assets like building a digital asset (website, app, YouTube channel, etc.), bonds, etc.
3. Check Out Different Car Leasing Companies
Every car leasing company has its own policies. And not all of them prohibit people from leasing a car if there is no credit history or a degraded credit score. So, inquire with the car leasing companies in your town and nearby ones as well.
4. Make a Larger Down Payment
The success of the car leasing business is vitally dependent on the number of cars it leases out. So, even if you cannot show them a good credit score, a big down payment will make them lease out a car to you. A larger down payment also signifies your capability of paying monthly charges, which assures the company.
5. Go for an Old Car
The value of an old car is always far less than that of brand-new cars. Additionally, most people go for recent models while leasing a car. Following this, car leasing companies have fewer options to lease out their old vehicles. And this context can be an escape point for you.
If you go for leasing an old car, most probably you will get one even if you do not have a credit score. Another favorable point is that the market value of an old car is lower, allowing the leasing company to feel less burdened.
6. Using Another Leasing
If you already use other leasing products, then consult with your current lessee to take care of your leasing of a car. The car dealer will not disappoint the first leasing company, as they will ask for money from the company, which has a good profile in the market. In this case, get a clear understanding of the installments and their respective amounts.
4 Alternatives to Leasing a Car with No Credit History
We think that the answer to can you lease a car at 18 with no credit also requires the inclusion of some alternative solutions. Below is a list of alternative solutions.
- Purchase a very old car. Those are usually very affordable and won’t break the bank. You can get one from the local salvage yard for an unimaginably cheap price. After purchasing, make the necessary modifications and upgrades.
- Purchase a car from a friend or family member who owns multiple cars, and the very old one always remains idle. Request an easy monthly installment.
- Reach out to individual people within your neighborhood who are looking for a passive income source. Consult with him or her about how his or her ability to buy a second car gives access to a stable second income source; it will make him or her buy a car. Finally, get leasing from the person.
- Check out specialized lenders who do not care if you have a credit score or not; they just want the interest. Negotiate a low-interest loan and use that for purchasing an old car. Please remember, this type of lender is usually not tolerant in the case of failure to make an installment payment; they can do massive harm if you cannot keep your promises.
We hope our detailed answer to can you lease a car at 18 with no credit will assist you substantially in your car hunt. Now you know the ways to lease a car even though you are not in the adult category and have no credit history. We suggest you do not stop after just trying one strategy. You will get a positive result from any of the approaches, so try until you succeed in leasing a car.
People Also Ask
How to lease a car with no credit and no cosigner?
Yes, you can lease by making a big down payment or taking assistance from another leasing company whose service you are already using.
What is the minimum credit score to lease a car?
The minimum credit score requirement for car leasing is 620. However, it varies from dealer to dealer; a direct inquiry is a good solution here.
What are the income requirements for a car lease?
As per standard, a monthly income of $1,500–$2,000 makes you eligible for leasing a car. However, the more, the better.
He is a passionate automotive writer with a deep understanding of cars and mechanics. With hands-on experience, John offers a knowledgeable perspective on the automotive repair and tips. Whether you’re a seasoned or regular driver, John’s articles are your go-to resource for all things.