How To — Buy Or Lease A Car With Bad Credit

Buying or leasing a car with bad credit is possible, though you should expect higher interest rates—often called a "money factor" in leases—and potentially larger upfront costs. Generally, traditional leasing is more difficult to qualify for than buying, as many lessors prefer scores above , while some subprime buyers can still secure a purchase loan with scores in the 500s . Strategies for Success

: Some manufacturers' financing arms, such as Hyundai Capital and Nissan Motor Acceptance, are known to be more flexible with lower credit scores than premium brands like BMW or Lexus. how to buy or lease a car with bad credit

: Offering 10%–20% upfront reduces the lender's risk and can help you qualify for better terms. Buying or leasing a car with bad credit

: Having someone with good credit (typically 700+ ) back your application is one of the most effective ways to secure approval and lower your interest rate. : Offering 10%–20% upfront reduces the lender's risk

: Be ready to prove financial stability with at least two years of stable job and residence history, recent pay stubs, and bank statements. Top Lenders for Bad Credit (April 2026)

Experts from CNBC Select and NerdWallet recommend the following lenders for subprime borrowers: Can You Lease a Car With Bad Credit? | Capital One