Can I take back a rental car with bad credit?
Transferring a rental car can be a way to get out of your rented vehicle without paying an early cancellation fee. But can you take over someone else’s lease if you have bad credit? Here is the agreement on lease transfers and takeovers.
How does a lease takeover work
When you take over a lease, also known as a lease transfer or lease takeover, someone else’s lease is transferred to you. You are responsible for all remaining payments and the original lease terms set by the leasing company.
However, you must also qualify for car rental, and must submit your credit information to the leasing company for the transfer to take effect. There are restrictions on lease takeovers, and they vary by leasing company, and they may have different rules. But generally, a lease takeover goes like this:
5 steps to take over a lease
- You file a credit application which asks you to take over the tenant’s lease contract.
- The leasing company decides, based on your income, debt-to-income ratio (DTI), credit rating, and a few other factors – all of which would normally be taken into account when applying for a rental. car. Leasing companies may also have restrictions and could deny you regardless of your ability to pay, your credit rating, and your credit profile.
- If you are approved, the leasing company will send you and the lessee the documents to sign and return. The keys are exchanged and the revised contract is finalized.
- The leasing company sends you and the tenant confirmation letters and begins sending you monthly rental statements. Transfer fees may also have to be paid.
- You are now a tenant! You assume and are responsible for the rental agreement, including paying for any additional mileage, excessive wear and tear, and vehicle insurance.
Take on a lease with bad credit
With a lease takeover, you still owe qualify for the lease in terms of credit score, income and DTI. If your credit rating and the credit rating of the original lessee are similar, and you meet the other requirements originally set out with the lease, the leasing company may consider transferring the lease. If you don’t have the income to pay the monthly payment, you’re unlikely to be approved even if your credit score is close to that of the original tenant.
If your credit score is significantly lower than the original lessee, even if you have the income to make the payments, the leasing company probably won’t approve the transfer either.
Keep in mind that leasing is normally intended for borrowers with good to excellent credit scores. Taking over a lease is not impossible with bad credit, but it’s not easy.
Automatic options for bad credit borrowers
Leasing is generally for those with good credit, and it can be difficult to get approved for a lease, repossess a lease, or finance a standard car loan with a rating of. imperfect credit. Fortunately, there are subprime lenders who work with bad credit borrowers.
If your credit score is far from perfect and you need financing, we want to help. AT Auto Express Credit, we’ve partnered with dealers across the country who work with bad credit lenders. We put you in touch with a dealer near you that has special financing. To get started, simply complete our car loan application form.