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Hello! I just joined today and have already learned quite a bit by just reading this forum. I was hoping you guys could point me in the right direction. I'm looking to lease a car and my credit isn't that great. TransUnion score 586 (Auto adj 560). I have a chapter 13 on my credit (discharged March 2014) and a few small collections and a few late payments (post discharge), and student loans. Suprisingly, I got preapproval from Capital One with an average of 14% APR (depending on the car). However, I didn't see any option on their site for leasing a car. Can anyone head me in the right direction towards company that will possibly approve me for a lease, instead of a purchase?
@nhlbluesgirl wrote:Hello! I just joined today and have already learned quite a bit by just reading this forum. I was hoping you guys could point me in the right direction. I'm looking to lease a car and my credit isn't that great. TransUnion score 586 (Auto adj 560). I have a chapter 13 on my credit (discharged March 2014) and a few small collections and a few late payments (post discharge), and student loans. Suprisingly, I got preapproval from Capital One with an average of 14% APR (depending on the car). However, I didn't see any option on their site for leasing a car. Can anyone head me in the right direction towards company that will possibly approve me for a lease, instead of a purchase?
Leasing will be tough. I tried about 6 months post bk and it was a no go. Although I could of financed the car without a problem. This was through GM, I wanted a Chevy Cruze. I just don't see it at this present moment of you leasing a car with such low scores. Capital One does not lease cars.
Welcome to the forum. I hate to be this blunt but leasing is going to be difficult based on what you posted. You have to give it at least a year or more to even consider leasing. Is leasing your only option? Why not finance for a while and then once your profile improves, you can go the lease route?
This is definately up to you of course...
@nhlbluesgirl wrote:Hello! I just joined today and have already learned quite a bit by just reading this forum. I was hoping you guys could point me in the right direction. I'm looking to lease a car and my credit isn't that great. TransUnion score 586 (Auto adj 560). I have a chapter 13 on my credit (discharged March 2014) and a few small collections and a few late payments (post discharge), and student loans. Suprisingly, I got preapproval from Capital One with an average of 14% APR (depending on the car). However, I didn't see any option on their site for leasing a car. Can anyone head me in the right direction towards company that will possibly approve me for a lease, instead of a purchase?
It is very difficult to get financing when you have late payments and collections post discharge. Are those collections from before the Bk or after? If before, use your discharge to get the collections removed. Some CA's put the collection on your account knowing that it is a violation of the discharge injuction thinking it will pressure you into paying more. OTOH, if these collections are post discharge, then there is a different issue at work here: a budget issue.
If I were in your shoes I would do the following:
A vehicle is a sizeable expense. Adding an expense when you are struggling to make your other obligations will keep you in bad credit territory. Get the cash vehicle until you are better situated with your finances. GL
I agree with Starting over. You will probably be best served by cleaning up what you can in your credit. I doubt you could get a lease right now. If you have to get a car right now make sure you only buy what you need and be disciplined about rebuilding so you can refinance to a decent APR in 6 months or so. If you can hold off and work through some of these issues you will find you have many more options than you do now.
A note on leasing, they can be really complicated because the transaction is not as transparent as a purchase. Good leases are really geared towards folks with good or superior credit because the default risk is low. With low credit scores the money factor (APR) will likely be too high to make a lease make sense and once you sign you can't refinance once your credit improves. For that reason I would suggest doing a purchase while your rebuilding. In a few years your scores will be solid and you will be able to get a good lease deal.