Reviewed by Arthur Geller, Auto Lease Concierge · Updated · How our numbers work
Every spring and December, a new group of University of Delaware grads starts a first job and needs a first car. Many of them come to me with the same worry: "I don't have much credit. Can I even lease?" Often, yes. Here's what to know.
What a bank looks at on a first lease
When you fill out a Credit Application, the bank looks at your credit history, your income and your existing debts. A thin credit file isn't the same as bad credit. It just means the bank has less to go on, so a few things can help:
- Proof of a job. An offer letter or first pay stubs show you can make the payments.
- A co-signer. A parent or relative with strong credit can get you approved or get you a better rate.
- A modest car. A lower payment is easier to approve and easier to live with.
Recent graduate programs
Several brands run programs for recent college grads, usually within a set time before or after graduation. They can mean a bonus off the deal or easier approval. The details change, so I'll tell you which ones apply for the car and month you're looking at, and what proof they ask for (usually a diploma or transcript).
Picking your mileage
Think about where your job is, not where you live today. If you're staying in Newark and working close by, 7,500 to 10,000 miles a year may be plenty. If you're commuting to Wilmington, Philadelphia or Baltimore, plan on 12,000 or more. Paying for miles up front costs less than paying for extra miles at turn-in.
Don't forget insurance
Insurance for a young driver on a new car can cost as much as the payment. Get a quote on the exact car before you decide. Sometimes a different model in the same price range costs much less to insure.
Delaware costs on your first lease
If you register in Delaware, there's no sales tax on the payment, but the state charges a 5.25% document fee when the car is titled. I include it in every Delaware quote. How Delaware's fee works.
Ready to look?
Tell me your budget, your commute and the cars you like. I shop multiple dealers, explain every number in plain English and deliver free in Newark. See Newark lease deals.