If I Have a Steady Income, But No Job, Can I Lease a Car?

Leasing a vehicle sometimes is better than buying a car because you can return the vehicle at the end of the lease period, typically have lower monthly payments and usually can get maintenance for free. However, as with regular auto loans, you may need a job to get a car lease, depending on where you go and what your credit score and debt-to-income ratio are like.

What Leasing Companies Want

Like other auto financing companies, leasing companies look at several factors when you apply for a lease. The first thing a leasing company looks at is your debt-to-income ratio, or the amount of money you're paying out in debt compared to the amount of money you are earning or getting through retirement and similar funds. The next big thing considered is your credit score. If your credit score is too low -- 600 or lower -- the leasing company may see you as too high of a risk to approve your lease or they will charge you a higher rate of interest. Leasing companies do look at your employment, too, as a job means a steady income that typically results in consistent payments on the lease.

Company Requirements

Whether you can get a car lease without a job depends largely on which leasing company you approach. Some companies make having a job part of their underwriting guidelines, which means that employment is a prerequisite for the financing approval. Others don't do this because they understand that a job isn't necessarily a condition for a good, steady income.

Cosigners

Getting a car lease without a job may be easier if you get a cosigner to help you. The cosigner assumes responsibility for payments if you default, which means the leasing company can depend on more than one person for payment -- that is, cosigners decrease the risk to the leasing company. Leasing companies sometimes want you to use a cosigner if you don't have a credit history or if your credit is poor, even if your income is good and your debt-to-income ratio is low.

Bottom Line

Leasing companies are concerned primarily with your ability to repay the lease amount. Your employment is only one factor a leasing company uses to determine whether you can do this. You may be able to get a lease with no job, but you likely will need a larger down payment, get a higher rate of interest or need a cosigner. You also may need to shop around to find a company that doesn't include employment as part of the underwriting guidelines. These same guidelines apply to virtually any type of financing, including regular car purchase loans.