Buying a car can be expensive. But you can check your credit score to see if you can get a good deal to lease a car instead of buying one.

But maybe you don’t even know how leasing a car works. Either way, you’ll find valuable information here. So keep reading and learn more.

Usually, when it comes to borrowing something that costs money, you’ll need a good credit score to get a good deal. That’s the general rule.

And guess what? Leasing a car is the same. So, if you’re planning to lease a car, you should have a credit score above 650.

This is the minimum credit score just to be considered for a lease. To have a higher chance of being approved, you should work your score to at least 750.

But remember that each car dealer will have its own way of making your credit analysis.

Some might consider you based on other financial aspects than just the credit score.

Depending on your needs, leasing a car can be better than asking for a car loan to buy one. And there are many reasons for this to be.

As there is no one-size-fits-all when it comes to finances, let’s present a few pros of leasing a car if your credit score allows you to choose:

Sometimes, committing to a car does not fit your life plans. Maybe you just need a car for a couple of years.

Or maybe you don’t use it a lot every day. As leased cars have a maximum usage measured in kilometers or miles, it can be a fit for you.

This way, you’ll have no worries when you change your plans and move on to another phase in your life.

There are many reasons to change your car every once and a while. Either because it is getting older or just because you’d like to try a new one.

Car leasing terms range around 2 to 3 years.

So every now and then, you’ll have the opportunity to switch to a better car without worrying about reselling the old one.

Repaying your car loan can be really expensive. If you want a lower monthly payment, leasing a car can be a great option.

As you’re not keeping the car, you’ll pay less to use it. The downside is that you’re paying for something you’re not keeping.

But we’ll explain why this is not necessarily a downside when it comes to cars.

A car costs a lot of money. But this cost goes beyond the price you pay for the car itself. There is a hidden cost called “devaluation.”

We are not even talking about maintenance, gas, and insurance. But a car will naturally devaluate as time goes by.

This means that by the time you finish paying for your car, it will already be worth less than the amount you paid for it.

Undoubtedly, it would be advantageous to build equity with your monthly payments.

But you must consider the bureaucracy and others costs of buying and selling a car. 

So your contract has ended. What now? What happens after you’ve used the car for the time you’ve agreed to?

There are a few possible ways to go from this point:

Once your contract ends, you must return the car in good condition.

As soon as they check that everything is okay, you can go on with your life without a car.

Pay attention to the wear and tear. A fair amount of wear and tear is expected, but if it’s too much, you’ll have to pay for the repair.

Have you enjoyed the car? You can ask to extend the contract and use it for a couple more years.

And if the market value of your car is currently lower than expected, you can even get a little more time to use it with no additional costs.

The best advantage of leasing a car is to keep driving a new one. So, when your first contract ends, you can check other car options to lease.

Remember that your contract includes a mileage limit; driving over this number will cost extra fees.

So based on your first lease period, you can analyze how much you really need to use the car and adjust your contract.

Did you fall in love with the car and wish it would become yours forever? You can buy it.

The car dealer will see how much the car is worth in the current market. You can make an offer and negotiate the car if you have the money.

If you have a good credit score, you can also get a car loan after you lease the car to finish paying for it.

Have you applied for a car lease but failed to be approved because of your credit score? Don’t worry! It happens to a lot of people.

It is a part of the game to fail sometimes. But don’t give up. You can always work a little bit more on your finances to improve your score.

So keep reading and learn more about the 650 credit score and whether it is good! Let’s go!