Does Leasing a Used Car Affect Your Credit?

We aren’t surprised that you are considering a used car at Prestige Chrysler Dodge Jeep® RAM. After all, there are so many benefits to buying used, including their affordability. There are so many benefits to leasing a used car as well.

How Does Leasing Work?

Think of a lease as a long-term rental from the dealership. When you lease a vehicle, you agree to a predetermined term. Then, you are essentially responsible for paying the depreciation your vehicle will incur during that time. This allows shoppers to lease a vehicle much more affordably than buy one.

How Much Can I Afford?

When applying for a lease, lenders will take into consideration your income, as well as your debt-to-income ratio. They’ll also look at your credit history. Even if approved for the car you’ve been eyeing, you still want to ensure it works with your budget. An auto lease calculator can give you an estimate of your monthly payment by factoring in your vehicle’s MSRP, the length of your lease, and its estimated value at the end of your lease.

Will My Lease Affect My Credit?

As far as your credit is concerned, obtaining a lease is not entirely unlike securing a loan. It’s adding debt to your name, which can increase your debt-to-income ratio, which could initially drop your score. However, with timely payments, you are establishing yourself as a responsible lessee, which will likely increase your score over time.

Still have questions about leasing a used car? Visit our car dealership in Las Vegas, NV to speak with our financial experts. We’re happy to review your options and answer any questions you may have. Stop in and see us today!