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Valued Contributor
Posts: 1,987
Registered: ‎06-25-2012
0

need advice.

Im looking to get another car but im not sure if i want to lease or finance. Ive never had a auto loan but im thinking this a right time to get a newer car. Im 21, 47k income, 1% utl, dont pay rent, 200 month on utl bills, 1 year aaoa and scores im the 700s.
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Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: need advice.

Leases are good if you want new cars every couple years with a lower payment. You gotta keep the miles low.

 

But you might be hard pressed to get one, you probably need to finance first before you can start the leasing cycle. Since your credit is so thin, your probably going to need a pretty good down payment. Once you get an auto loan reporting for a while, leasing will be easy.

Valued Contributor
Posts: 1,987
Registered: ‎06-25-2012
0

Re: need advice.

My longest account is 4 years old...does that change anything?
Amex BCE (2500) / Amex SPG (4000) / Amex GoldPR / Merrill+ Visa siggy (5000) / BofA Amex (6000) / Bofa cash rewards (5000) / BofA Privileges Cash Rewards (5000) / Citi Forward (4400) / Citi DP (2000) / Chase Freedom (4000) / Chase CSP (5000) / Chase Hyatt (5000) / Discover IT (1700) / FNBO AMEX (3600) / NFCU cashRewards Visa signature (15000) / NFCU Flagship Visa signature (12500) / NFCU Navcheck (5000) / Nordstrom (500) / MetroCU Visa Elite (5000) / Walmart (4500) / Kays Jewerels (6600) / Kohls (300) / Macys Platinum (2500) / DCU platinum Visa (17500) / Citizens bank cash back (1100) / Bill Me Later (1631) / PayPal Smart connect (2200) / BestBuy store card (2000)
Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: need advice.

I just leased my first vehicle in Nov. I financed all the others. I ended up asking for 15K miles per year. I like leasing as the payment is a lot lower. I like being able to bring the car back in 3 years and lease another one; however, since it is a brand new Acura, I might keep it and buy out my lease. I purchased the protection plan where the dealer will fix door dings, scratches, and other minor cosmetic things so at the end of the lease, I won't be charged for it. I am way under mileage right now which is great because any unused miles will be rolled into my next lease. If you choose to lease, make sure your driving habits support it and make sure Gap coverage is included. You should look for a close ended lease that locks in your residual value at time of buyout at the beginning of the lease as that protects you against depreciation. A lease is nice for those who get tired of the car they drive after 3 years and also get sick of costly repairs as the car ages. Leases are also nice for people who want to keep their debt low on their credit reports for a home purchase in the future as you are only responsible for the total amount of payments over the lease term NOT the full value of the car as with financing. So the full value of my Acura is $35K but only $18K shows up as debt on my credit report. Your score is definitely adequate to lease. Most leases require a score in the 700s. My auto enhanced score was 724 when I was approved for the Acura.
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Valued Contributor
Posts: 1,987
Registered: ‎06-25-2012
0

Re: need advice.

Im looking for something with manual trans, Rear wheel drive and coupe. It seems most lease are for the auto with lame wheel drive. Im very picky when it comes to cars. Also can you negotiate the downpayment when leasing a car?
Amex BCE (2500) / Amex SPG (4000) / Amex GoldPR / Merrill+ Visa siggy (5000) / BofA Amex (6000) / Bofa cash rewards (5000) / BofA Privileges Cash Rewards (5000) / Citi Forward (4400) / Citi DP (2000) / Chase Freedom (4000) / Chase CSP (5000) / Chase Hyatt (5000) / Discover IT (1700) / FNBO AMEX (3600) / NFCU cashRewards Visa signature (15000) / NFCU Flagship Visa signature (12500) / NFCU Navcheck (5000) / Nordstrom (500) / MetroCU Visa Elite (5000) / Walmart (4500) / Kays Jewerels (6600) / Kohls (300) / Macys Platinum (2500) / DCU platinum Visa (17500) / Citizens bank cash back (1100) / Bill Me Later (1631) / PayPal Smart connect (2200) / BestBuy store card (2000)
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: need advice.

The problem is that auto financing can be tricky to get if you dont have auto loan history on your credit report.

 

Leasing is harder to get then financing, but I see you having issues even getting financed. Rate will be higher and down payment will be higher till you can prove you can make payments.

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: need advice.

You can lease any car.

Valued Contributor
Posts: 1,987
Registered: ‎06-25-2012
0

Re: need advice.

I havent even tried to finance nor apply for any loans. Im asking before i even try or go to any dealer
Amex BCE (2500) / Amex SPG (4000) / Amex GoldPR / Merrill+ Visa siggy (5000) / BofA Amex (6000) / Bofa cash rewards (5000) / BofA Privileges Cash Rewards (5000) / Citi Forward (4400) / Citi DP (2000) / Chase Freedom (4000) / Chase CSP (5000) / Chase Hyatt (5000) / Discover IT (1700) / FNBO AMEX (3600) / NFCU cashRewards Visa signature (15000) / NFCU Flagship Visa signature (12500) / NFCU Navcheck (5000) / Nordstrom (500) / MetroCU Visa Elite (5000) / Walmart (4500) / Kays Jewerels (6600) / Kohls (300) / Macys Platinum (2500) / DCU platinum Visa (17500) / Citizens bank cash back (1100) / Bill Me Later (1631) / PayPal Smart connect (2200) / BestBuy store card (2000)
Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: need advice.

Exactly. +1 on tooleman's comment. You can lease any car. If you get approved for tier1 leasing, you typically only put down the first month's payment or zero. If you don't get tier1, you may have to put down a security deposit also. I only was required to put down the first month's payment but I put an extra $1,000 down to get a lower monthly payment. You shouldn't put more than a $1,000 down on a lease.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: need advice.

You might have a chance at leasing. If you are really interested in it, I would apply for it. If you are approved for a lease, the dealer will typically come back with both a lease offer and a finance offer and show you the difference in monthly payment between the two and then you get to choose which offer you would like to proceed with. You will get a better deal on a lease if you tell them you want to finance first and then negotiate the price down and then say you prefer to lease the negotiated amount instead of finance.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014

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