02-02-2013 06:00 PM
so I really need some advice. My mother is in desperate need of a new car. We jut got back from the Toyota delearship and they offered us an amazing deal for leasing a 2013 Toyota venza.
now our dilemma is that her credit is horrible, like 530
I am willing to lease the car for her, as my credit is pretty good (720-740 range and was around 780 as auto enhanced) However, in July I leased an audi a4. So my question is, what is the likelihood of me being approved for a second lease? I currently make around 40,000 a year. I did mention our situation to the salesman and he said that he would have to look at my credit before saying anything And that worst case scenario I would need her to co-sign as supplemental income...which I am pretty sure she wouldn't even qualify for Because of her credit scores.
my current payment on the a4 is 490 per month and I know that I can make both paymenst on my car and venza if somehow my mom were not able to make payments. I just don't know how difficult it to work with Toyota financial services.
any advice I is appreciated. Thanks!
02-02-2013 07:23 PM - edited 02-02-2013 07:23 PM
All depends on the income in question vs payments (aggregate); however, and as a disclaimer I used to work at TFS in their infrastructure group, if any manufacturer finance arm is willing to play ball it's probably TFS. Not an enjoyable place for me to work, but they do have good auto loans, and financing for almost anyone.
I'd work it out with the F+I guy, unless you're OK with leasing the car for your mother (which does nothing to help her own credit issues), I think best case scenario is one of you co-signs for the other, not sure it matters which is which but I'm not familiar with that side of the issue.
If your rent / mortgage / other debt obligators aren't out of line, I don't think it'd be too much trouble as you're still looking at 3300/month gross. Fact is you qualify for their top tier financing program, so it's probably pretty easy to see what you'd be paying. Do the math on the DTI calculation to see if you qualify, though admittedly I don't know what ratio they're looking for on an auto loan.
02-02-2013 09:52 PM
Hi thanks so much for your reply.
I calculated my dti ratio and it is about 29% given all the minimum payments on credit cards, even though I only use 2 out of the 5 cards I have, and including some money for rent, which i currently don't pay...but I have heard that this can be frowned upon from a bank's point of view so I will probably just say I pay like 300 a month or something.
I guess I am just nervous that they won't approve me based on my income. I guess we'll see tomorrow. I chickened out applying for it today lol
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