When people need to lease a vehicle but have no credit or a poor credit history, they worry that they will not qualify for a car financing deal or will have limited financing options.

It is true that obtaining auto financing through conventional dealers and finance companies will be significantly more difficult if you have poor or no credit.

Dreamrides, however, is different:

• We are not a broker of credit.
• We personally lease and finance the vehicles.
• When you apply for auto financing, your credit score is not a factor in our decision-making.

There are no obstacles to obtaining the vehicle of your dreams through negative credit auto leasing (financing is subject to approval).

A car lease is a contract between the lessor (the company that owns or will purchase the vehicle) and the lessee (the individual who will pay to use the vehicle).

When you lease a vehicle, your monthly payment will be based on the vehicle's depreciation plus interest and fees. Depreciation is the difference between the vehicle's current value and its value at the conclusion of the lease.

Your lease includes the following provisions:

The amount you must pay at the beginning of your lease.
Typically, a lease term lasts between two and four years.
What the vehicle is currently worth and what it is anticipated to be worth at the end of the lease.
The costs you will incur at the conclusion of the lease.
The "money factor" or rent charge, which is comparable to an auto loan's interest rate.
Possible early termination fees if the vehicle is returned prior to the end of the lease.
How many miles you are permitted to travel annually. Many leases limit annual mileage to 10,000 to 15,000 miles; if you exceed this limit, you may be charged a per-mile fee.
How the lessor defines normal wear and tear and the costs associated with excessive wear and tear. If you smoke in your vehicle, have children, transport animals, or park on a busy street, you increase the likelihood of incurring fees.
What happens if a rent payment is missed?
Keep in mind that you do not own the vehicle, even if some of the rules appear restrictive. The lessor retains the title, and the vehicle must be returned in excellent condition at the end of the lease.

Leasing may be preferable to purchasing for multiple reasons:

Assuming you are comparing leasing versus financing for the purchase of the same vehicle, the lease payments will be lower than the monthly loan payments.

A lease may necessitate a smaller down payment than financing a vehicle.

You might be able to afford a brand-new car with all the latest features, even if you couldn't afford to buy the same car.

Leasing may be less expensive than purchasing and selling a vehicle every couple of years if you want to always drive the most recent models.

Typically, your automobile will be covered by a manufacturer's warranty.

You are not responsible for selling or trading in the vehicle at the lease's conclusion.

The language in a car lease agreement may be new to you and can sometimes be confusing. Here are some of the common terms and their definitions:

• Acquisition fee: Some dealerships or leasing companies charge an upfront fee for arranging the lease. You may be able to negotiate this fee or find a lease without an acquisition fee.
• Buyout price: You may be able to end the lease at any time by buying the car outright. The buyout price may decrease over time as the car depreciates.
• Capitalized cost: Often shortened to cap cost, this is the initial price of the car. You can negotiate the cap cost just as you would when buying a car.
• Cap cost reductions: You may be able to reduce your cap cost in various ways, such as negotiating the price, trading in a car or making a down payment. Because you pay for the depreciation between the cap cost and the residual value (the value of the car at the end of the lease), cap cost reductions can lead to lower monthly payments.
• Disposition fee: You may have to pay a disposition fee at the end of your lease to help cover the dealership's costs for getting the car ready to sell. Even if you can't negotiate the fee upfront, you may be able to negotiate it down when you return the car if you offer to buy the car, buy a car or start a new lease with the dealership.
• Gap insurance: Insurance that covers the difference between a car's residual value and what your auto insurance company pays out if the car is totaled. Some lessors require you purchase this and include the insurance premiums in your monthly payment.
• Lease term: The length of the lease, which is often two to four years.
• Mileage allowance: How many miles you're allowed to drive each year before the per-mile penalty begins. You can sometimes negotiate a higher mileage allowance, but may have to pay more each month as a result.
• Money factor: Also called a lease factor, lease rate or rent charge, the money factor determines part of your monthly payment. The money factor is often shown as a small decimal fraction, but you can convert it into an interest rate by multiplying the number by 2,400. For example, a cap rate of .0025 equals an interest rate of 6%.
• Purchase option agreement: Your lease may specify how much you can purchase the car for once your lease ends.
• Residual value: The value of the car at the end of the lease, which may be determined by a third party.
• Security deposit: You may have to pay a security deposit, which the lessor holds on to and can use to cover damage or extra-mileage charges when you return the car. If you don't owe any extra fees, you'll receive the full security deposit back.

Deciding between buying, leasing and waiting can be difficult, and you'll want to consider the pros and cons of each option.

If you're looking for a low down payment and low monthly payments, a lease may be best, especially if you want a new car with the latest technology. Otherwise, a used car could be an option.

However, if you're focused on long-term savings and are fine driving the same car for many years, purchasing a car could be a better option than leasing. If you're looking to buy but are having trouble affording a new car, a certified pre-owned car offers some of the same advantages (such as a warranty) with a lower cost.