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Established Member
Posts: 39
Registered: ‎04-22-2011
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If You Lease does it go on Credit Report?

I am thinking about Leasing an car, because we are also in the process of purchasing a home as well and the mortgage company that we will be going through suggested that we or I do not purchase a car, until after closing... Anyway,I need a vehicle now, so I was wondering that if I get an Lease does it still show on the credit report and how does it report, would it generally report showing the full purchase price of the vehicle, or what?

 

I really wouldn't put any miles on it at all, my job is 5 miles away, my kids school is 1 mile away, and when I go out of town I just rent a vehicle.  The only thing I am worried about is the approval, I was late on my current auto loan (which is paid off now), back in 2006.

 

Any suggestions would be greatly appreciatedSmiley Happy

Established Contributor
Posts: 582
Registered: ‎10-17-2010

Re: If You Lease does it go on Credit Report?

[ Edited ]

Yep, it goes on your credit report under installments just as a financed vehicle including the Full leased price of the vehicle at signing say $30,000 for example -- minus my monthly payments, of course = balance reported each month.  Approval is about the same as traditional financing, but dealerships make alot more money pushing Leases than Retail Financing because they get to resell the vehicle again after you return it as well as the upfront kickback they receive for leases over financing.

 

But, I'd warn against a lease.  I did it one time in life and will never do it again.  I had the same thought in mind as you did -- in fact, I only lived 6 minutes away from my office AND had a second vehicle, so I thought, No Big Deal!!!  Boy-O-Boy was I wrong.  Leased vehicles require the highest insurance requirements, therefore, I could not modify my policy.  If you modify your insurance policy below their requirements, they CAN and WILL repossess your vehicle, so I carried sky-high premiums for the full length of the lease -- with that money alone, I could've purchased ANOTHER small car.

 

Also, it was more of a headache in the end trying to prep the vehicle for return -- they want it in prestine showroom condition with a new set of tires if the wear is under specs, etc.  That Kit they send you is to measure each wear-n-tear dent.  Since my lease end timeframe was during the Winter season, imagine me trying to identify and measure dents in our Michigan weather -- hope you have a garage or use a friend or relative's.  You must provide proof of This-n-That such as all recalls, oil changes, routine scheduled maintenance -- no problem there if you save all of your receipts.  I thought it was just my leasing company being a Pain In The Rear, but NOPE -- all do the same.  If you have small children, FORGET IT!!!  If something spills -- they will charge you a minimum detailing fee of $600 if you don't take care of spots and stains yourself.  The dealership made a note that they found a couple fossilized french fries in the cushion of the back seat and told me they MUST make a note of that -- whaaaaaaaat???  But, there's no DING for fossil fries  Smiley Very Happy

 

Then you walk away Car-less and back to square one again.

Valued Contributor
Posts: 1,668
Registered: ‎02-18-2009
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Re: If You Lease does it go on Credit Report?


JayRizzo wrote:

Yep, it goes on your credit report under installments just as a financed vehicle including the Full leased price of the vehicle at signing say $30,000 for example -- minus my monthly payments, of course = balance reported each month.  Approval is about the same as traditional financing, but dealerships make alot more money pushing Leases than Retail Financing because they get to resell the vehicle again after you return it as well as the upfront kickback they receive for leases over financing.

 

But, I'd warn against a lease.  I did it one time in life and will never do it again.  I had the same thought in mind as you did -- in fact, I only lived 6 minutes away from my office AND had a second vehicle, so I thought, No Big Deal!!!  Boy-O-Boy was I wrong.  Leased vehicles require the highest insurance requirements, therefore, I could not modify my policy.  If you modify your insurance policy below their requirements, they CAN and WILL repossess your vehicle, so I carried sky-high premiums for the full length of the lease -- with that money alone, I could've purchased ANOTHER small car.

 

Also, it was more of a headache in the end trying to prep the vehicle for return -- they want it in prestine showroom condition with a new set of tires if the wear is under specs, etc.  That Kit they send you is to measure each wear-n-tear dent.  Since my lease end timeframe was during the Winter season, imagine me trying to identify and measure dents in our Michigan weather -- hope you have a garage or use a friend or relative's.  You must provide proof of This-n-That such as all recalls, oil changes, routine scheduled maintenance -- no problem there if you save all of your receipts.  I thought it was just my leasing company being a Pain In The Rear, but NOPE -- all do the same.  If you have small children, FORGET IT!!!  If something spills -- they will charge you a minimum detailing fee of $600 if you don't take care of spots and stains yourself.  The dealership made a note that they found a couple fossilized french fries in the cushion of the back seat and told me they MUST make a note of that -- whaaaaaaaat???  But, there's no DING for fossil fries  Smiley Very Happy

 

Then you walk away Car-less and back to square one again.


There are two major things people Lease in their life: Cars and apartments/houses. No one ever calls their rent payment their mortgagae but everyone calls their leased car payment their car payment.

yet the standards are very similar: when I leave a leased apartment I have always been given an itemized bill of everything they did after I moved out and was charged accordingly. (My favorite is what they bill for cleaning the stove)

 

Car leases are similar.

 

I dispute your negative experience/opinion on leasing as fear mongering.


Car lease payments are BASED ON THE RESALE CONDITION OF THE CAR AT THE END OF YOUR LEASE- so yes cleaning and dings may well influnce that value. Leaving 4 bumperstickers on the card about how your kid is a successfull whatever at whatever school, is like punching holes in the wall of your apartment. Someone has to fix it.


Lease a summer house/cabin/beachfront and you will be charged for wear and tear damage and such.


Leasing a car can be a great experience if you:

 

1- have a stable job and commute so you can predict your mileage.

2- have stable housing so you know where you mileage will be at the end

3-Fully explore and factor all "lease turn in" fees to your overall payment. (do research some companies charge some do not)

4- Do not expect to have excessive wear or tear to the car (yeah lots of kids can be a problem)

5-Keep in mind IT IS NOT YOUR CAR.

 

But here is the thing: Ford, if you were leasing a vehicle from them offers WEAR CARE which yes you pay for, but it does increase the amount of coverage you get to where you in most cases really can walk away from the lease at the end no money owed unless you went over mileage. (Talk in depth at the dealership to know what is expected of you.)


You get the benefit of, depending on the lease special/incentives, of getting a $25,000 car for around $300 a month. thats pretty darn good.  So yes pay the $100 to have the car detailed before you turn it in (which most people do not want to do because they are giving up the car), or accept paying much more to have the car cleaned.


I have seen people have major damage to a lease vehicle from a car accident and not want to turn it into their insurance company as it would raise  their rates freak when they are told they are going to be charged at turn in, its like Umm did you expect that little elves were going to fix that missing bumper?

 

For an idea of extra warranty and wear care you can get for peace of mind:

http://www.fordcredit.com/redcarpetlease/features_benefits.jhtml

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New Visitor
Posts: 1
Registered: ‎09-16-2015
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Re: If You Lease does it go on Credit Report?

On my credit reports it shows only the outstanding number of payments and the total for the payments left on the lease less taxes. It  absolutely does not show the total amount of the car. I'm in my fifth lease car.

One question I have for you is why, if you hardly drive, you need to lease a car. Maybe you're leasing a plug-in electric car and renting a car for the occasional road trip. Anyway, you're paying for a certain number of miles when you lease so you might as well use them. Maybe lease a car that's big enough for the road trip in the first place.

I don't know why people are so uninformed about leasing cars. A simple calculator would show the advantage for anyone driving less than 12,000 miles / year. For the most part if you add up the payments, down payment if any, and the buy-it price at the end of the lease it very often comes out to less than buying the car outright for cash and paying the taxes on day 1.  Go to Honda's site and click on Special Offers and pick a lease with $0 due at signing. Add it all up and compare it to the MSRP. You'll see.

 

I hear people say that it's a rip-off because the car has to be in good shape when you turn it in. OK, if you're the type of person who trashes a vehicle in 3 years, leasing is not for you, but how is it different from owing the piece of trash you created? If you're a smoker who is driving a car with broken glass, dents the size of a fist and a key scratch across 3 panels then you should only buy $8,000 used cars and change every 2 years.

 

Another complaint is that there's an excess mileage charge of $0.15 to $0.25 per mile over 12,000/mi or whatever you've contracted for. If you owned the car and drove a lot of miles it would be worth less so what's the difference? Truth is, when you turn a car in at the end of the lease the dealer is so anxious to get you into a new lease that they eat the cost of some if not all of the excess mileage. Same with minor damages...number of dings per panel, size of dings, scratches, paint. It's pretty well spelled out what normal wear-and-tear is and most people don't come near to the excess wear-and-tear.

I park on the street, no garage, and I have never had a charge for wear-and-tear. Bumper covers do get scratches. Not a big deal.

 

Think of leasing as a 3 year test drive. If you like it at the end you can buy it cheap and keep it as long as you can afford to maintain it. Otherwise you can turn it in, get the latest in technology, with brand new tires, brakes, antifreeze, transmission oil, suspension, etc at pretty close to the same monthly payment you've been paying.

 

 

Frequent Contributor
Posts: 395
Registered: ‎02-12-2015

Re: If You Lease does it go on Credit Report?


halle101 wrote:

I am thinking about Leasing an car, because we are also in the process of purchasing a home as well and the mortgage company that we will be going through suggested that we or I do not purchase a car, until after closing... Anyway,I need a vehicle now, so I was wondering that if I get an Lease does it still show on the credit report and how does it report, would it generally report showing the full purchase price of the vehicle, or what?

 

I really wouldn't put any miles on it at all, my job is 5 miles away, my kids school is 1 mile away, and when I go out of town I just rent a vehicle.  The only thing I am worried about is the approval, I was late on my current auto loan (which is paid off now), back in 2006.

 

Any suggestions would be greatly appreciatedSmiley Happy


I have a similar profile to yours. I picked up a 2000 Acura TL for 2K with 120K miles on it (timing belt already done). Had to put tires on it. Drives great. Don't care what happens to it, my kid can spill anything in the back and I don't care, car parked next to me can ding my door, don't care. 

 

No car payment. 300 bucks a month I can blow on whatevs. Super cheap insurance. 

 

Wife drives the new escape of course Smiley Very Happy

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Regular Contributor
Posts: 156
Registered: ‎02-01-2015
0

Re: If You Lease does it go on Credit Report?


halle101 wrote:

I am thinking about Leasing an car, because we are also in the process of purchasing a home as well and the mortgage company that we will be going through suggested that we or I do not purchase a car, until after closing... Anyway,I need a vehicle now, so I was wondering that if I get an Lease does it still show on the credit report and how does it report, would it generally report showing the full purchase price of the vehicle, or what?

 

I really wouldn't put any miles on it at all, my job is 5 miles away, my kids school is 1 mile away, and when I go out of town I just rent a vehicle.  The only thing I am worried about is the approval, I was late on my current auto loan (which is paid off now), back in 2006.

 

Any suggestions would be greatly appreciatedSmiley Happy


You should be okay. The late pay is 9 years old.

 

If you lease a 25k the whole 25k will not report just the amount  of the monthly payments and  how long. $300 a month times $36 mos=$10800 thats the amount that will be report as an installment loan.

 

As long as your over 620 or so you should be okay. Toyota 680, Honda 710, BMW 580 (I worked at BMW), GM 680, Lexus 720. You can lease if you have a lower score from what is shown.

 

Your not required to but any money down regardless of what the salesman says.

 

Good luck.

 

 

Member
Posts: 19
Registered: ‎05-13-2015
0

Re: If You Lease does it go on Credit Report?

It would show up only after 2-3 months. Mortage providers generally run a credit check as soon a you apply, so your auto lease won't show up. 


halle101 wrote:

I am thinking about Leasing an car, because we are also in the process of purchasing a home as well and the mortgage company that we will be going through suggested that we or I do not purchase a car, until after closing... Anyway,I need a vehicle now, so I was wondering that if I get an Lease does it still show on the credit report and how does it report, would it generally report showing the full purchase price of the vehicle, or what?

 

I really wouldn't put any miles on it at all, my job is 5 miles away, my kids school is 1 mile away, and when I go out of town I just rent a vehicle.  The only thing I am worried about is the approval, I was late on my current auto loan (which is paid off now), back in 2006.

 

Any suggestions would be greatly appreciatedSmiley Happy


 

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New Contributor
Posts: 56
Registered: ‎04-19-2015
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Re: If You Lease does it go on Credit Report?

Yep, it goes on your credit report under installments just as a financed vehicle including the Full leased price of the vehicle at signing say $30,000 for example -- minus my monthly payments, of course = balance reported each month (Incorrect).  Approval is about the same as traditional financing (Correct...for the most part), but dealerships make alot more money pushing Leases than Retail Financing because they get to resell the vehicle (100% Incorrect...the vehicle is returned to the Finance Company that leased the vehicle...unless the dealer decides to buy it from them for whatever the predeterming Residual Value was at the time the lease was signed) again after you return it as well as the upfront kickback they receive for leases over financing. (Incorrect because the finance company pays a Flat Reserve to the dealer and no points can be held by the dealership)

 

But, I'd warn against a lease.  I did it one time in life and will never do it again.  I had the same thought in mind as you did -- in fact, I only lived 6 minutes away from my office AND had a second vehicle, so I thought, No Big Deal!!!  Boy-O-Boy was I wrong.  Leased vehicles require the highest insurance requirements (Incorrect...all lenders set there own insurance policy guidelines...as long as you have a $500 deductible or less then there are no problems), therefore, I could not modify my policy (Incorrect...they just don't wany you carrying liability on THEIR car and don't wany you having a rediculously high deductible).  If you modify your insurance policy below their requirements, they CAN and WILL repossess your vehicle (Incorrect...they will put their own policy on the vehicle and charge you for it...and it is their car by the way...you are leasing it from them, they paid for it), so I carried sky-high premiums for the full length of the lease -- with that money alone, I could've purchased ANOTHER small car.

 

Also, it was more of a headache in the end trying to prep the vehicle for return -- they want it in prestine showroom condition (Incorrect...but if someone borrowed something from you wouldn't you want it back in good condition) with a new set of tires if the wear is under specs, etc.  That Kit they send you is to measure each wear-n-tear dent.  Since my lease end timeframe was during the Winter season, imagine me trying to identify and measure dents in our Michigan weather (You put the dents in it, you should be responsible for them) -- hope you have a garage or use a friend or relative's.  You must provide proof of This-n-That such as all recalls, oil changes, routine scheduled maintenance -- no problem there if you save all of your receipts.  I thought it was just my leasing company being a Pain In The Rear, but NOPE -- all do the same (CORRECT...they all want their cars returned in good condition).  If you have small children, FORGET IT!!!  If something spills -- they will charge you a minimum detailing fee of $600 if you don't take care of spots and stains yourself (IT'S NOT YOUR CAR...IT NEVER WAS...Would you tear up a rental car and not expect to be charged for it?).  The dealership made a note that they found a couple fossilized french fries in the cushion of the back seat and told me they MUST make a note of that -- whaaaaaaaat???  But, there's no DING for fossil fries  Smiley Very Happy

 

Then you walk away Car-less and back to square one again (Incorrect...you can trade in the car if you have equity, you can purchase the vehicle for the same predetermined residual value that the dealership can buy it at, or you can walk away and turn the vehicle in.)

 

I'm just asking that you do a little more research on what a lease is before spreading rumors and incorrect information about them here on these forums or anywhere else.  Leases are great options for people that like a more affordable monthly payment and trade cars every 1-3 years and don't put a lot of miles on their vehicles.

Regular Contributor
Posts: 156
Registered: ‎02-01-2015
0

Re: If You Lease does it go on Credit Report?


nissanrep wrote:

Yep, it goes on your credit report under installments just as a financed vehicle including the Full leased price of the vehicle at signing say $30,000 for example -- minus my monthly payments, of course = balance reported each month (Incorrect).  Approval is about the same as traditional financing (Correct...for the most part), but dealerships make alot more money pushing Leases than Retail Financing because they get to resell the vehicle (100% Incorrect...the vehicle is returned to the Finance Company that leased the vehicle...unless the dealer decides to buy it from them for whatever the predeterming Residual Value was at the time the lease was signed) again after you return it as well as the upfront kickback they receive for leases over financing. (Incorrect because the finance company pays a Flat Reserve to the dealer and no points can be held by the dealership)

 

But, I'd warn against a lease.  I did it one time in life and will never do it again.  I had the same thought in mind as you did -- in fact, I only lived 6 minutes away from my office AND had a second vehicle, so I thought, No Big Deal!!!  Boy-O-Boy was I wrong.  Leased vehicles require the highest insurance requirements (Incorrect...all lenders set there own insurance policy guidelines...as long as you have a $500 deductible or less then there are no problems), therefore, I could not modify my policy (Incorrect...they just don't wany you carrying liability on THEIR car and don't wany you having a rediculously high deductible).  If you modify your insurance policy below their requirements, they CAN and WILL repossess your vehicle (Incorrect...they will put their own policy on the vehicle and charge you for it...and it is their car by the way...you are leasing it from them, they paid for it), so I carried sky-high premiums for the full length of the lease -- with that money alone, I could've purchased ANOTHER small car.

 

Also, it was more of a headache in the end trying to prep the vehicle for return -- they want it in prestine showroom condition (Incorrect...but if someone borrowed something from you wouldn't you want it back in good condition) with a new set of tires if the wear is under specs, etc.  That Kit they send you is to measure each wear-n-tear dent.  Since my lease end timeframe was during the Winter season, imagine me trying to identify and measure dents in our Michigan weather (You put the dents in it, you should be responsible for them) -- hope you have a garage or use a friend or relative's.  You must provide proof of This-n-That such as all recalls, oil changes, routine scheduled maintenance -- no problem there if you save all of your receipts.  I thought it was just my leasing company being a Pain In The Rear, but NOPE -- all do the same (CORRECT...they all want their cars returned in good condition).  If you have small children, FORGET IT!!!  If something spills -- they will charge you a minimum detailing fee of $600 if you don't take care of spots and stains yourself (IT'S NOT YOUR CAR...IT NEVER WAS...Would you tear up a rental car and not expect to be charged for it?).  The dealership made a note that they found a couple fossilized french fries in the cushion of the back seat and told me they MUST make a note of that -- whaaaaaaaat???  But, there's no DING for fossil fries  Smiley Very Happy

 

Then you walk away Car-less and back to square one again (Incorrect...you can trade in the car if you have equity, you can purchase the vehicle for the same predetermined residual value that the dealership can buy it at, or you can walk away and turn the vehicle in.)

 

I'm just asking that you do a little more research on what a lease is before spreading rumors and incorrect information about them here on these forums or anywhere else.  Leases are great options for people that like a more affordable monthly payment and trade cars every 1-3 years and don't put a lot of miles on their vehicles.


I am not sure of what kind lease you did but I have the opposite position  in my lease.

It is not the full car price only your monthly payment times the months 200*24=$4800. On my credit report it my monthly payment time my months not a 50k plus car.

 

I have a brand new leased GS 350 F sport (lexus does not require the 100k insurance) I live in Fort Lauderdale/Miami and my insurance is $88 Geico, I am barely over 30 years old. single male. My deductible is $500

 

To turn in my 2014 IS I had the car with a scratch on the back, 18k miles on the tires, and dent on the front wheel arch, as well as some white marks on the roof from a gate hitting my car or me lol. ANYWAYS I was only charge for a missing key. If you look into leasing some car makes give you a break on dents. BMW and Lexus say no more than a credit card size scratch or dent etc etc, there are vidoes and product information for this also my wheel arch dent was bigger than a credit card.

 

You do not need to trade the car in!! After you have completed your lease payments you can turn the car back in like I did and not have a trade. I bought a new Lexus with no money down and under 500 a month. I will lease again and again.

 

And I was under my milage. Please do not listen one size fits all.

 

Trust me I know a lot of older people who have leased 5 plus cars and they do not plan on stop doing anytime soon.

 

Good luck and drive the car you would like to have.

Regular Contributor
Posts: 156
Registered: ‎02-01-2015
0

Re: If You Lease does it go on Credit Report?


halle101 wrote:

I am thinking about Leasing an car, because we are also in the process of purchasing a home as well and the mortgage company that we will be going through suggested that we or I do not purchase a car, until after closing... Anyway,I need a vehicle now, so I was wondering that if I get an Lease does it still show on the credit report and how does it report, would it generally report showing the full purchase price of the vehicle, or what?

 

I really wouldn't put any miles on it at all, my job is 5 miles away, my kids school is 1 mile away, and when I go out of town I just rent a vehicle.  The only thing I am worried about is the approval, I was late on my current auto loan (which is paid off now), back in 2006.

 

Any suggestions would be greatly appreciatedSmiley Happy



I am not sure of what kind lease you did but I have the opposite position  in my lease.

It is not the full car price only your monthly payment times the months 200*24=$4800. On my credit report it my monthly payment time my months not a 50k plus car.

 

I have a brand new leased GS 350 F sport (lexus does not require the 100k insurance) I live in Fort Lauderdale/Miami and my insurance is $88 Geico, I am barely over 30 years old. single male. My deductible is $500

 

To turn in my 2014 IS I had the car with a scratch on the back, 18k miles on the tires, and dent on the front wheel arch, as well as some white marks on the roof from a gate hitting my car or me lol. ANYWAYS I was only charge for a missing key. If you look into leasing some car makes give you a break on dents. BMW and Lexus say no more than a credit card size scratch or dent etc etc, there are vidoes and product information for this also my wheel arch dent was bigger than a credit card.

 

You do not need to trade the car in!! After you have completed your lease payments you can turn the car back in like I did and not have a trade. I bought a new Lexus with no money down and under 500 a month. I will lease again and again.

 

I dont want the car after 2 to 3 years they can have it back!

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