Years ago the big â??3â? where leaning toward leasing with a â??credit challengedâ? consumer, because leasing is short term. 24 months vs. 60 months, which one would you want to be tied to with a consumer who has a less then stellar payment history? But now with lower APRs due to our â??recessionâ? purchasing might be your best bet. Most low APRs are short term, 24 to 36 months. Your chances to finance lie in the hands of your F&I manager, find one who wants to put you a vehicle and who knows who will do it without shopping you around. Donâ??t be shocked if they ask for money down. Good Luck.
It's easier to finance because leasing usually requires a higher score and money out of your pocket. Besides, there are few advantages to leasing unless you will use the vehicle for business purposes (tax perks) including higher insurance costs and overmileage charges. I would also consider getting pre-approved and then going shopping for that "pre-owned" car with "remaining manufacturer's warranty" left on it. If you intend to trade a vehicle, know what your 10 day pay-off is and your per diem rate. Check with www.edmunds.com, www.nada.com, or your financial institution to get an idea of what your car is worth, as well as the vehicle you are interested in purchasing, before you go to the dealership. Also, consider contacting your insurance company to check how your rates could be affected. But most importantly, ask to take the vehicle you are really interested in home for the evening (to sleep on it and to have yur mechanic give it the GREEN LIGHT). CardKid
The payment factor and down payment were all that mattered to me. I could afford to buy a $27K car, or lease a $41K car. Because the payment was the same. The dealer approved me on both, however leasing didn't cut it for me, as I intend to modify my car as I always have before.
I have always leased vehicles that I intend to keep, that way the miles are not important, plus any alterations are OK. I have always been able to lease with no money out of pocket. www.creditsense.com
The major problem with auto leasing is that most people don't expect to go over the allowed mileage or be hit for damages that would normally be considered "wear and tear". Mileage limits are generally unrealistic for the average driver over the life of the lease and the charges can smack one really hard when the vehicle is turned in. Also the inspection of the vehicle is generally done with much more stringent criteria and resultant charges for damages are excessive - where a minor ding on the fender from road debris, that is barely noticeable would be overlooked on a trade in , for a turn in you may find yourself charged for repairing it.
As a credit-challenged individual, I've had to lease my past two cars. I would have preferred to buy, but I had to go with the financing I could get. I know leasing isn't the best deal, but at least I got a great rate on my current lease. I hope to buy my car when the lease is done. Most dealers have told me a lease is easier for the credit-challenged to get.
