You need better credit to lease a car than get a loan
Though it may sound like it should be the opposite, getting a good deal on a lease generally requires excellent credit, explains Mike Ouyang, marketing lead for auto loans with LendingTree in Charlotte. “Financing is more readily available for those with less than stellar credit.” Find out the 34 secret car buying tips your car dealer won’t tell you.
It may be hard to get a loan
Most banks, credit unions, and other finance sources don’t offer credit for leases, says Sonia Steinway, co-founder of auto finance start-up Outside Financial in San Diego. “That means the average customer is restricted to using captive financing (like Toyota Financial Services or GM Financial), at whatever rate that lender is willing to provide,” Steinway says. “For customers with great credit who are eligible for sub-vented financing (i.e., subsidized), that’s not a problem, but those with lower credit scores may find they can get much better interest rates on a purchase loan.”