How to Lease a Car Without Disclosing Your Employer

There is a large difference between not having an employer and not having an income. People without employers can be contractors, entertainers, salespeople, consultants and retirees. Others may have earnings from interest or benefit payments. People with alternative sources of income often need to lease cars for business and personal use. Many lenders serve this demographic due to substantial demand and quality of borrower. Disclosing your employer on a car lease application is much less important than disclosing your source of income and your ability to pay your bills.

Definition

A car lease, also called a finance lease, is essentially a long-term rental agreement where you pay for the right to use a car. The lesser and the lessee form a contract containing terms, then sign the agreement when the terms are settled upon. Signing an auto lease agreement means that you agree to make regular monthly payments, pay all taxes and licensing fees, keep suitable car insurance and take good care of the vehicle. Additionally, you agree that you'll pay the lease for a specified number of months, typically 24 to 48, until the lease expires.

Process

As a borrower without an employer, learning the state of your financial affairs will smooth conversations with car-leasing professionals. Lenders will look at your source of income like savings and reported 1099-MISC earnings. Client, benefit, interest and court-ordered payments also are considered. Your credit history is very important when applying for a car lease. Lenders will look closest at your FICO score and how long you have maintained residency in a single place because they are trying to gauge how stable you are and how likely it is you will fulfill the terms of the lease agreement.

Negotiation

If you are trying to source a lease without an employer, a good credit history goes a long way when negotiating the best lease terms possible. It is wise to be prepared with a copy of your credit report, a list of income sources and proof of income when meeting with lenders. Keep in mind, most car salespeople dont really know the details about the finance products they are selling, so hear out what they have to say and then schedule an appointment with the dealership's finance manager. He will provide you with calculations and terms of the leases available to you. Take the information home for review and make sure you understand all of the terms and calculations before returning to sign. Consumer advocate groups like The Federal Reserve Board have guides about auto leasing readily available on the Internet.

Considerations

Although obtaining a lease at a dealership offers the convenience of signing a lease and driving away in a car, there are ways to get better deals if your dealership has a disappointing finance department. You can shop for a better deal through independent sources like your bank or credit union and bring it to the dealership. The car source will be the dealership, but the lender will be your chosen institution. Additionally, comparative shopping online is a way to get a great value. Websites that serve as auto lease intermediaries can cover a wide territory and will take your information, then match you with potential dealers.