New auto loan or lease

[leigh2002]

This is my first post here!  I've been reading through everything the past couple weeks and this forum is so helpful.

I am currently leasing a 2011 Chevy Equinox LT (which has not been a good car for me - LOTS of engine issues and has been in the shop a ton. Honestly I don't feel safe putting my children in it and have been round and round with GM).  Thankfully, it is a lease so I am able to move on from it!  My lease is up in September so I have 5 payments left on it.  The balance quote through Ally I pulled today is $1,600. 

My dad is a big Toyota guy and he just leased his fourth Camry from the same dealership/salesperson.  He told me they have some great zero down leases going on right now and I should take a look.  I'm debating on the Highlander.

I've had a bk in the past (discharged 5 years ago in June).  I've really been working on rebuilding my credit from there.  Bought a house last year, have never been late on a car payment and did not include a car in the bk (it was paid off).  I haven't been late on any payment since the bk.  My current ratio of revolving balances to credit limits is 17%.  I have one inquiry in the past 12 months.

My income is $3500/month plus $1200/month in child support.  I've been at my employer for 11 years.  I went ahead and pulled my equifax report today and my score is 698.  So I am wondering if this score would qualify me for the tier 1 financing with Toyota.

Thanks for any help! 

[Creditaddict]

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@leigh2002 wrote:

This is my first post here!  I've been reading through everything the past couple weeks and this forum is so helpful.

I am currently leasing a 2011 Chevy Equinox LT (which has not been a good car for me - LOTS of engine issues and has been in the shop a ton. Honestly I don't feel safe putting my children in it and have been round and round with GM).  Thankfully, it is a lease so I am able to move on from it!  My lease is up in September so I have 5 payments left on it.  The balance quote through Ally I pulled today is $1,600. 

My dad is a big Toyota guy and he just leased his fourth Camry from the same dealership/salesperson.  He told me they have some great zero down leases going on right now and I should take a look.  I'm debating on the Highlander.

I've had a bk in the past (discharged 5 years ago in June).  I've really been working on rebuilding my credit from there.  Bought a house last year, have never been late on a car payment and did not include a car in the bk (it was paid off).  I haven't been late on any payment since the bk.  My current ratio of revolving balances to credit limits is 17%.  I have one inquiry in the past 12 months.

My income is $3500/month plus $1200/month in child support.  I've been at my employer for 11 years.  I went ahead and pulled my equifax report today and my score is 698.  So I am wondering if this score would qualify me for the tier 1 financing with Toyota.

Thanks for any help! 

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yes, you should not have a problem getting tier 1 at Toyota.

be sure to run the numbers, right now they have 0% for 60 and 1.9% for 72 months to purchase it over lease it.

[leigh2002]

Thanks! I thought about that later on to see what would be the best way to go. 

I stopped in to the dealership today and test drove the Highlander. I liked it more than I thought I would. What I found odd was the salesperson said in his honest opinion they wouldn't be able to give me enough for the Equinox and there would be about a 2k deficit. He didn't even look at my car, ask my monthly payment or anything. He also said they weren't getting a lot of the Highlanders right now so it would be best to wait until July or August. I was just a little surprised they didn't even want to try to make it work. He did take my name and number and said he would verify his thoughts with the finance person. 

I'm used to a dealership wanting to pull credit and get down to talking numbers right away. I don't know if he was busy or just trying to blow me off. I would have taken it home today if the numbers worked out!

[Creditaddict]

I think what he means is you need to turn your lease in to Chevy vs trade it to toyota, then you can come in with a clean slate to toyota to buy or lease the new one... If you want to trade it in he is saying he can't get you full payoff. He is doing you favor being this close to lease end don't trade!

[Remember0]

Agreed with Creditaddict. I think you'll be better off waiting 4 months, turning in the lease to GM, then going over to toyota. Of course, read the tips on this board of how to shop around and negotiate...walking in without doing it online is a good way to overpay.

See

http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

AND

http://ficoforums.myfico.com/t5/Auto-Loans/How-to-buy-a-car-for-the-first-time-buyer/td-p/1923289

[leigh2002]

That makes sense, thank you both. I was just unsure since he didn't even ask anything about my current car. I offered the info to him about what I was currently driving and when my lease was up. I didn't know if he was trying to get me to wait because they didn't have a lot of Highlanders right now. 

I also like the Nissan Pathfinders so I will probably take a look at those too when it gets closer.  I can wait until July/August if that's what is best. I just really dislike that Equinox and all the issues it has had. I'll keep doing my homework until then. I don't want to have the Highlander be my only option. 

[Creditaddict]

Pathfinder is now available in hybrid too!