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Financing Options with Zero Down

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fxtrader
Member

Financing Options with Zero Down

I'm looking to purchase another vehicle due to a new job that is not accessible by NYC public transportation. I recently purchased my first car this past March (2015 Toyota Corrolla) for a family business. My father is responsbile for these payments (his bank acct is linked on the online payment site). I have about 10-11 credit cards and one auto loan reporting with all positive payment history. FICO is around 675-690. I'm looking to purchase a car that is "beyond" my income level based on what I've read on these message boards..this would be a BMW M4, C63 AMG, Porsche, Nissan GT-R, etc. I've seen many of these same vehicles at used car dealers who advertise "buy here pay here" or everyone approved". I want to pay $0-$2,000 down. I know a traditional bank would decline my app based on lack of history of not financing a car in this price range and the low down payment. Would going to a used place and seeing the options be any difference than going to a BMW, etc dealer? I'm looking for a short-term lease..do the buy here pay here contracts have voluntary forfeiture clauses? Just say that I don't want the car after 4-6 months.. I ask this since buy here pay here dealers don't report payment history to any of the three bureaus.. is this correct? Thanks. 

Message 1 of 12
11 REPLIES 11
mitchblue
Valued Contributor

Re: Financing Options with Zero Down

Invest in a Bicycle. 

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Message 2 of 12
StartingOver10
Moderator Emerita

Re: Financing Options with Zero Down

This is what I get from your post:  you want to lease a car for 4 to 6 months that you can't afford and turn it in as a voluntary repossession? Not a good idea at all.

 

You do know that the "forfeiture" clause you reference is a repossession, right?  

 

Why would you want to trash your credit?

 

BTW:  BHPH dealers report bad credit history (non-payments), not good credit history (most of the time). A repo can then become a judgment and depending upon where you are geographically the judgment can last as long as 10 years (or twenty years) and be renewed if not paid for a similar period of time. Look up your state's judgement statutes so you have accurate time frame information for your area. Judgements are public records in addition to whatever may or may not show on your credit report.

 

As I said at the beginning: not a good idea at all. 

 

Message 3 of 12
fxtrader
Member

Re: Financing Options with Zero Down

Thanks for the info. I can afford many of these cars..but from what I've been reading on these boards..I shouldn't. I was just floating some ideas around..I actually found swap a lease online. Ultimately, I was looking for a short-term lease. I would not ever seriously contemplate a BHPH due to the extremely high rates. I assumed that the BHPH dealers experience high repo rates..so a voluntary repo/return would be a positive for them. Thanks for the clarification. Smiley Happy

Message 4 of 12
StartingOver10
Moderator Emerita

Re: Financing Options with Zero Down


@fxtrader wrote:

Thanks for the info. I can afford many of these cars..but from what I've been reading on these boards..I shouldn't. I was just floating some ideas around..I actually found swap a lease online. Ultimately, I was looking for a short-term lease. I would not ever seriously contemplate a BHPH due to the extremely high rates. I assumed that the BHPH dealers experience high repo rates..so a voluntary repo/return would be a positive for them. Thanks for the clarification. Smiley Happy


Actually, it might be a positive for the BHPH dealer - they end up with a judgment that they can either keep and pursue collection or they can sell the judgment to someone else to collect.  But it definitely isn't a positive for you...Smiley Happy

Message 5 of 12
fury1995
Valued Contributor

Re: Financing Options with Zero Down

Is there a particular reason you want/need such a short term? Have you looked into luxury monthly rentals?

 

It seems that risk is an issue for you... and you can afford what you want to do but just not on paper (reading between the lines here, came from a family business myself).

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Message 6 of 12
txbusted
Contributor

Re: Financing Options with Zero Down

So I am not an expert BUT... I wouldn't do that. Perhaps you can look into getting a monthly car rental. I know that enerprise has a Elite Car class and I think it includes BMW's. Just a thought. 

 

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Message 7 of 12
Anonymous
Not applicable

Re: Financing Options with Zero Down

How about one of the lease swap sites. Maybe you can find someone wanting out of their lease 8-12 months early. Or monthly rentals with Hertz or Avis. You can get some deals on those through Costco membership if you're talking a couple months.

Please don't trash your credit to look cool for a few months.
Message 8 of 12
fxtrader
Member

Re: Financing Options with Zero Down

You're right about the income. I don't want to commit to a 2 year lease or 5-6 year car loan. I like the flexibility of changing cars every few months. 

Message 9 of 12
Anonymous
Not applicable

Re: Financing Options with Zero Down

No offense, but stop that. Unless you make gobs of money you cannot have or afford this behavior.

Find something nice, suck it up and either lease for two years or buy outright. Your desire for something different all the time is going to get you in and keep you in negative equity until you burst and can only drive an old, smelly broken down Yugo to fix the problem!!!
Message 10 of 12
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