Can I get approved for a lease in Calgary?

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Can I get approved for a lease in Calgary?

For drivers worried about if they’ll be approved for a lease in Calgary, we here at Pfaff Leasing have your back. We’ve assembled some key tips to better inform you of ways to get approved for a lease. These tips will better prepare you and give you more insights on what is actually required.

Ideal Fit

Before seeing if you can get approved for a lease, make sure it’s the best fit for you compared to other options. Typically, the down payment and fixed monthly payments are lower than financing, and a lot of maintenance costs are covered under the manufacture warranty or lease agreement. However, leases can come with additional costs due to exceeding a leases mileage limit or extra wear and tear that causes depreciation to the residual value of the vehicle once the lease expires. Terminating a contract early also comes with an expensive penalty fee.

Knowing what fits your monthly budget is important. An added bonus to a lease is that you can get vehicles that you otherwise would be unable to afford with a purchase or loan. Be sure to pick the vehicle you want first, then find the ideal lease. Make a list of needs versus wants with your next vehicle, so you can better match the vehicle you need with the best possible lease options.

Improve your odds

There’s also benefits to making a sizeable down payment before signing a lease. This is referred to as capitalized-cost reduction, and will lower the amount of your lease and monthly payments, and therefore, increase your odds of being approved. Be warned: many leasing companies may have restrictions on the total cap-cost reduction drivers in Calgary are allowed to make.

Another way to improve your chances of being approved for a lease is to lower your debt-to income ratio. To do a DTI calculation, divide your monthly debt payments by your monthly gross income.  Lenders will look favorably upon drivers with a lower debt-to-income ratio.

A co-signer with strong credit can almost assure you’ll be approved for a lease. Now, getting a friend or family member on the hook if you fail to pay can be an awkward interaction, so save this tactic as a final resort.

Credit Score

Checking your credit report before applying for a lease is a must. This gives residents in Calgary time dispute or fix any issues. After that, checking your credit score is another must. Knowing your credit score helps you and the lease company figure out which vehicles are easiest to get approved for. If your credit isn’t that strong, it’s a good idea to look at less expensive vehicles that will cost less to finance. Getting approved to lease a used car is also a lot easier than getting approved for a new vehicle. We at Pfaff Leasing do offer special leasing options that can help people with less than stellar credit.

Lease Today

Pfaff Leasing is a one-stop destination for residents looking to get approved for a lease in Calgary. Our facility is right around the corner at 5539 6 Street S.E., Calgary. We look forward to welcoming you into our automotive family!

Please feel free to continue to browse our website at your leisure, or click here to find our contact information, fill out our contact form for further assistance, or schedule a test drive today!