Auto Loan vs. Auto Lease????? I have a question for the 'seasoned' car buyers out there. As most of you are probably already aware, I was declined an auto loan (well, acutally that should read LOANS) last week and now I'm exploring my options. I ran across a nifty website, http://www.swapalease.com . They provide a service in which you can assume existing leases that people want to get out of. Don't know much about the service, but after reading the FAQs it seems pretty legit to me. Anyway, how do the underwriting criteria for leases compare to the criteria for loans ( i.e.: which of the two is more lenient)? I'm a first time buyer and getting a car loan is like pulling teeth, especially with derogs on my bureaus. Would it be easier getting a lease? Or harder. Thanks for your help in advance....
Re: Auto Loan vs. Auto Lease????? If your credit isn't all that great, I can't imagine that getting a lease would be any easier than getting a loan...
Re: Auto Loan vs. Auto Lease????? i was told you qualify for $XXX dollars per month, lease or purchase from audi financial services. i could buy a $27K car or lease a $41K it didn't matter to them, the qualifications are the same.
Re: Auto Loan vs. Auto Lease????? I use to do auto loans. I worked for a credit union and if you didn't qualify for an auto loan then you won't for a lease. From what I understand, some places require higher credit qualifications in-order to lease. Don't waste the inquiries and get your credit better first. Also really check out the place that is doing these types of leases. I have a friend who ended up having to give back a car to the FBI because the cars were stolen. I'm not saying it will be the same situation, but just check it out really well first. Also make sure none of the vehicles are salvaged. A salvaged car is when a car has been wrecked but made to "look good" again. It would only worth about 1/5 of blue book value. No respectable lender would give you a loan for that kind of car.
Re: Auto Loan vs. Auto Lease????? Matt... I just bought a 2002 Ford Focus last Tuesday and my bankruptcy was discharged in March. Ford Credit financed me at 2.9% for 60 months. I had attended a "Credit after Bankruptcy" seminar and learned that Ford has one of the best programs for people who are subprime. Call your local Ford dealers and ask to speak to the finance manager. Do not speak to a salesman...just tell the finance manager your story: "You need a car" "Your credit isn't the greatest" "You can put XXX amount down" "You want to take this opportunity to rebuild your credit" "Can he get you financed with Ford Credit or any mainstream lender?" If he says no....call the next Ford dealership...and the next Ford dealership and the next Ford dealership until you get a YES. If he says yes, then head down to the dealership and talk to him. If you already have your credit reports, show them to him. Otherwise, you'll have to fill out a credit application. Once he has the facts, he can run the numbers and tell you what he can offer you. Number one rule is don't take the first offer. If he says the best he can do is $10,000 at 18%, politely thank him for his time and walk out the door. If he offers $15,000 at 12%, start smiling. If he offers you the special incentive rate that Ford is currently offering (around 4.9% on certain cars), offer him your firstborn child. Now if you're like me and have never driven an American car, switching to Ford is a bit of a change. However for 2.9%, I'm willing to open my mind a bit. Plus Ford does sell ALL types of used cars that can be financed with Ford Credit. Now once you know how much car you can afford and the APR and the estimated payments, ask the finance manager to introduce you to the best salesman at the dealership and hopefully in a few hours you'll be driving aways in a nice car with the amount of hassle.
Re: Auto Loan vs. Auto Lease????? Thanks for the info everyone. I saw your post the other day about the 2.9% on your Focus. Congrats--it sounds like you landed a great deal with Ford! I will definitely look into them in a month or so, once my disputes are settled with the CRAs and I know *exactly* what I'm working with. First step is the CU, if that fails then I'll do Ford.
I think it is better to purchase a car instead of leasing one. If you plan on keeping the car and you drive more the 12,000 miles per year I would purchase the car. Once you make all your payments then the car is yours. In the long run you will save more money by purchasing. Who wants to keep trading in your car for different one and always having to make a card payment. Thanks! Heather with BoostMyScore.NET
