Approximately 20 percent of all car transactions are to those leasing. It is important to treat car leasing like an other loan or repayment plan. Failure to make a payment can have both short-term and long-term effects.
Missing even one lease payment on a vehicle will result in a lowered credit score. The exact impact on your credit score has various factors that depends on the payment plan set up with the car dealership. Leases, on credit scores, are actually considered a loan and treated as such.
If you fail to make a lease payment, the car could be repossessed. Typically the car will not be taken away after one missed payment; generally, it requires two or three consecutively missed payments for this to happen.
Contact the dealer immediately if you are having trouble making payments on a car lease. It might be possible to work out a different payment plan or amount.
Rachel Burton started writing professionally in 2008. Her work can be found in "Out N' About" newspaper. Burton has a Bachelor of Arts degree in English and sociology.