Is it Easy to Lease a Car If You Already Are Leasing?

Credit Considerations

If your credit has suffered since you initially leased your current vehicle, you may not obtain a lease approval. Banks require good to excellent credit for leases. All of the accounts on your credit history should be current, meaning that you aren’t late on payments for any lines of credit. If you have a consistent and on-time payment history with your leasing bank and have maintained your good credit, you shouldn’t have a problem obtaining an approval for another lease. Otherwise, you may have to finance your next vehicle. Auto loan providers are more forgiving when credit issues exist, as loan terms are adjustable based on credit.

Apply for a Lease

The best way to determine whether you’ll obtain another lease approval is to apply to a leasing bank. If you do not want to shop until you have a definite approval, many manufacturers offer a convenient online application process. Go to the manufacturer’s website to virtually build a vehicle and apply for a lease approval. If the website doesn’t offer an application option, contact a local dealership. Give a dealership representative your credit information over the phone and discuss the vehicle you want to lease. Your application may be approved immediately, or you’ll obtain a letter stating why your application was declined.

Debt-to-Income Ratio

If you plan to pursue a second lease and have excellent credit, the bank uses your debt-to-income ratio to determine your approval. Even with excellent credit, you must prove you make enough money for two lease payments and other debts listed on your credit report. If you have maxed out your lines of credit or lack the necessary income to support two lease payments, the leasing bank may decline your loan. If so, use a co-signer on your application. A co-signer secures your lease with his income and good credit.

Budget Considerations

If you do obtain a second lease approval, budget the costs of a second car appropriately. Expect to carry another full-coverage insurance policy through the term of your lease contract. Check the costs of the extra coverage before you decide to lease another car. Lease contracts also require that you consistently maintain your vehicle, so consider the costs of consistently maintaining a second car. Contact your dealer’s service department to discuss the vehicle’s maintenance schedule and cost. Some vehicles are more expensive to maintain than others.

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