How to Co-Sign a Lease for a Car

Car leasing companies consider the buyer's credit score to determine whether he qualifiesfor the lease and to set the terms of the agreement. If the buyer has a poor credit score, he may get approval for a lease if someone cosigns the lease. The cosigner accepts full responsibility to pay the amount owed on the lease if the primary borrower fails to make the required payments. This is not a responsibility to be taken lightly. The process is fairly simple, but the consequences could be severe.

Instructions

1

Discuss the monthly payment amount with the person who will be taking out the lease. Ask her if she has worked out a monthly budget that includes the lease payment, and, if you are concerned about her ability to pay, review the budget together to ensure that it is balanced.

2

Go together to the car dealership where you will sign the lease.

3

Provide your Social Security number so the leasing company can run a credit check. Your credit score will help determine the terms of the lease.

4

Provide information on your income along with any required documentation. The procedure varies from one company to another, but you might need to provide recent pay stubs or last year's tax return to prove you have enough income to support the lease payments.

5

Read the lease agreement carefully. Note the amount of the lease payments and how many years the lease lasts. Consider again whether it is a risk you are willing to take.

6

Complete all required paperwork, and sign the lease agreement.