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Leasing a vehicle is a great way to drive the car you want without breaking the bank. It can also be somewhat confusing for drivers who may have never encountered the leasing process before.

Fortunately, we’ve assembled this quick guide to help you understand whether or not leasing a pre-owned BMW affects your credit score.

What to Do Before Applying for a Lease 

Before signing your BMW lease, remember that your credit score will come into play when applying. A majority of auto leases will require a down payment and a security deposit to be put down at the time of signing. Lenders will also check the current state of your credit, so paying off any unpaid credit card balances or bills is always encouraged. 

How Does Credit Affect the Leasing Process? 

Your down payment, security deposit, and monthly payments will reflect the current state of your credit. If your credit is on the lower side, lenders may require you to pay more for the cost of your vehicle. If you have good credit, lenders will feel safer assuming the risk of the transaction and will likely provide you with a better offer. 

Applying for too many leases at once can cause your credit score to dip slightly. This is because of the several inquiries on your credit, but it should remedy itself after a month or two. Additionally, if you fall behind on your monthly payments, this will also reflect on your credit score. If you treat your car payments like any other bill and pay them on time, you'll be in great shape to drive off in your lease. 

The leasing process can be confusing, but hopefully, we've answered some of your questions. If any lingering questions remain about the leasing process, don’t hesitate to reach out to our BMW finance department for answers!