It’s possible to qualify for an auto lease with a monthly payment less than $300, but your credit score may need to be in good shape.
Auto Leasing With Low Monthly Payments
One of the biggest motivators for borrowers choosing to lease is the potential to score a low monthly payment – most lessees are payment shoppers. However, the average lease car payment is around $450, according to Experian’s State of the Automotive Finance Market report covering the third quarter of 2020. If you want a payment under $300, they definitely exist, it’s just not the average.
Here at CarsDirect, we’ve done the hard work of looking for low-payment leasing deals, and gathered a list with payments under $300. Here are a few standouts:
| Model | Monthly Payment | Lease Term | MSRP |
| 2021 Subaru Forester | $284 | 36 months | $25,845 |
| 2021 Toyota RAV4 | $279 | 36 months | $27,225 |
| 2021 Chevrolet Trailblazer | $236 | 36 months | $19,995 |
| 2021 Honda Civic | $260 | 36 months | $22,005 |
| 2020 Chevrolet Malibu | $257 | 36 months | $22,970 |
| 2020 Hyundai Ioniq Hybrid | $246 | 36 months | $24,155 |
Qualifying for Car Lease
Most leased vehicles are for borrowers with good credit. Leasing companies also place you in a money factor tier, which is what the interest rate on a lease is called. The tier you qualify for is largely based on your credit score – the borrowers with higher credit scores generally get assigned the best rates. This means that qualifying for a lease with a lower credit score could mean paying more for it.
While leasing with poor credit isn’t impossible, borrowers with credit scores below 600 only make up a little more than 5% of the entire leasing market, as reported by Experian. If you can meet all the other criteria of leasing, and your credit score is just under the 600 mark, it may be possible to qualify, but the odds aren't in your favor. Most borrowers in the subprime credit score category have an easier time qualifying for an auto loan rather than a lease.
Bad Credit Auto Loans
Subprime financing is specifically for borrowers in tough credit situations, or those who are new to the credit world, since new borrowers tend to have lower than average credit scores.
These third-party lenders are signed up with special finance dealerships. Instead of your credit score being a “make it or break it” factor, they look at many other aspects of your creditworthiness. This typically includes things such as your work history, monthly income, debt to income ratio, living stability, and down payment.
Subprime car loans can be a great way to turn your credit around. These loans are reported to the credit bureaus, so every timely payment you make can build your credit score. If getting the vehicle you need and repairing your credit at the same time sounds like the path for you, start right here with us at CarsDirect.
We look for the latest leasing and auto loan deals, and have created a nationwide network of dealers that work with bad credit borrowers. Begin the search for a dealership near you by filling out our free car loan request form.
