How to Lease a Car with Bad Credit

It is a fact that even persons having bad credit record need cars for mobility. Since car dealers cannot ignore this segment, we have a number of car dealers and manufactures who have special lease offers to cater to these people.

In the event of your having a bad credit and yet you desire leasing a car, the first thing to do is to obtain a copy of your credit score and report. By requesting the credit reporting agencies, go about cleaning up the credit report as far as possible through removal of items which are fact.

View sample leases over the Internet and then find a large car dealer for, it is they who do maximum business in car leasing and are able to provide leases for those not having ideal credit report. Having located a likely dealer, fix up an appointment with the finance director. On meeting him, show him your credit score but ensure that he does not go about checking your credit rating till you have finalized a deal. You may have to visit several dealers to be successful. Always ensure that you have ample cash for down payment since it would be more than a person having a sound credit rating.

Is Leasing a Car Tax Deductible

While leasing a car, it is essential that you go through the sample leases before finalization. The benefits that accrue when a leased car is used for business purposes are quite considerable and the relevant calculations need to be done with care.

To avail tax deductions, it is essential to maintain a log book where the amount of use for business purpose is recorded. It could include going out for business appointments or any other business related travel. Calculate this time as a percentage of total time the car has been used.

The next step is to work out the annual lease payment made and then calculate the cost involved for the use of the car for business purpose. This amount is tax deductible. Thereafter, you should work out the cost involved in running the car like gas, maintenance, insurance, repairs and so on. This too is tax deductible to the extent used for business. Ensure that the “lease inclusion amount” has been factored in. Another thing that has to be kept in mind while availing tax deductions on a leased car used for business is that  the amount of lease expense deductible can be reduced in case of cars costing over a prescribed value.