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What are the income requirements for a car lease?
I’ve crunched the numbers and I don’t think I can afford a car loan right now. I’ve heard that leasing a car is less expensive than buying one, but what are the income requirements for a car lease?
Cassandra Hamilton · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You’re right in thinking that
leasing a car
is less expensive than buying a car
, and you’re also right in thinking there are income requirements for a lease. Income requirements for a car lease vary between dealerships and car makes, but there are some general financial rules you should keep in mind to determine whether or not you’ll qualify for a car lease.- Credit score. Even if you make more than enough money, a bad credit score indicates you’re not great at handling your finances. You might be rejected for a car lease.
- Debt to income ratio. If you’re spending more than you’re taking in, you won’t be considered for a car lease.
- Your income before taxes. Generally speaking, you’ll need to bring in at least $1,500 to $2,000 per month before you can qualify for any type of loan or financial agreement.
- The 20/4/10 rule. Put 20% down, lease for four or fewer years, and don’t let the cost of your car (including insurance!) exceed more than 10% of your monthly income.
Car insurance is something you may not think of when planning your budget around your car, but it’s an expense that can quickly add up. If you suspect you’re paying too much for car insurance for your vehicle, download the
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- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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