There are many things to consider when you want to buy or lease a car, they are different. Buying a car involves paying the whole amount of the car, regardless of how many miles you drive. In contrast, leasing a car allows consumers to pay only for a particular period of time, and for a limited mile coverage allowance as well. Comparing buying and leasing a car has it’s pros and cons, but it all depends on the consumers particular lifestyle if it really demands buying, or in this case, leasing a vehicle. When one wants to qualify for leasing a car, here are some guidelines.
The first thing one has to consider when leasing a car is to check one’s credit standing. As with any other transactions, credit score plays a major part. As leasing involves trust, car dealers will look up on your past borrowing transaction to give them a glimpse how you fared well when it comes to paying your monthly obligations. Consumers must check first the minimum credit score imposed by car dealers before they can proceed to the next step.
Once your credit score is okay, car dealers also check your residence qualification. This involves proving that you have lived in a certain place for a particular period of time. The period of your local residency or rental ownership is required.
The next step is your employment qualification. Obviously, car dealers check your source of income for you to be able to play your monthly dues. You have to present documents that you are working for a particular company for a period of 1 to 5 years. This is to make sure that you are able to cope up with the length of your car lease.
And to be more specific, aside from the employment qualification, the income qualification is called for. Being employed doesn’t mean that you can automatically lease a car. For some car dealers, consumers must have at least $1,500 monthly income for example to be able to qualify.
Depending on what type of car-dealing companies one inquires to, there may be lesser or more qualifications needed to avail the service, but the qualifications listed on top are generally applied.
The qualifications needed when buying a car compared to leasing a car are usually more strict, and the process is longer. This makes consumers resort to leasing a vehicle instead of acquiring a new one, not to mention the cost involved when buying a new vehicle.
As some reports show, 20% percent of the total car transactions in the country involves car leasing, and is still growing. This shows that the typical consumers are becoming aware of the economical benefits of car leasing and thus resort to it.
Aside from the budget friendly benefit that consumers get, they also have the privilege of changing into a new car or model when the current lease has expired. They simply can return the leased car and apply for another, giving them the satisfaction of driving the latest vehicles and staying up to date.