As a wise parent, you probably want your kid to drive safely with the least hassle and most convenience. Therefore, leasing a car offers the safety of a new vehicle with lower monthly payments than for a typical car purchase. It seems like a practical option for teenagers. Want to learn more about your options? Click here to contact your personal lease expert.
Though when it comes to the deal, most car-leasing companies are unlikely to lease a car to anyone under 18 because of contract restrictions for minors. More to that, teens also have to pass the credit check.
Just like they do for other applicants, before approving the application leasing companies do the checking. They evaluate an adult teen’s income, monthly obligations, and credit score. A score of 670 or above is ideal for a lease as we mentioned here. But most teens haven’t had time to build up a great credit score yet.
Sometimes it means they’ll have to pay high-interest rates on the lease or may not get approved at all. So there is no way a teenager can get a leased car? Actually, it is possible and in most cases, you (as an adult) end up having 2 options:
Let’s dive into the details of these both ways.
Leasing a car on the teen’s behalf
The adult can be the sole applicant for the lease. If the driver is under 18 and an adult intends to sign the lease on their behalf, it is a must to check with the company‘s policy.
Some companies allow the driver to be properly named on the lease contract. Though it’s not necessarily included in the lease agreement. The teen’s name may not be on the lease agreement with one exclusion. As long as he is listed and covered by the adult’s auto insurance policy, he can still drive the leased vehicle.
Another way is to put your name as a co-signer in the contract. It’s a big deal and in this case, you become liable for the whole process. Co-lessees are treated as equal owners and are liable for negligent operation of the vehicle, regardless of who’s driving it.
Adult teenagers can benefit from this arrangement too. Adding a co-signer who has a strong credit history, a stable income, and minimal debts can help a lot. This way a teen can qualify for a larger lease obligation at a more competitive interest rate.
Being young and free, you definitely want to enjoy this period of time. But we should not forget to be responsible for our safety and take an action. DMV declares that New York State requires young people under age 18 to train for driving. You have to progress through the phases of the State’s Graduated Driver License Law (GDL). The GDL allows drivers in this at-risk age group to gain experience and gradually display their safe driving ability.
Leasing a car instead of purchasing one is a great idea If your teen needs a car in high school or at college. You could choose to take out a loan to buy a car, but you’d pay more than if you lease a car of equivalent value. With monthly payments of about $100, a low-payment lease deal can have a number of benefits for you.
Choosing to lease your teen gets a new car with the latest safety features, a full warranty, and affordable monthly payments. Leases are typically for two to three years, often the same amount of time that a college student may have parking access at school.
As students often stay local, mileage restrictions will not be a concern for you. Whether you co-sign or lease a car on your teen’s behalf, you are taking smart action to save money and provide your teenager with a reliable vehicle. With Grand Prix Motors you get a massive choice of affordable new cars and excellent service with your personal lease expert.
#enjoy your freedom with Grand Prix Motors!
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