Lease/buy (FICO effect)

[MLESPADA]

Is there a difference between leasing vs financing a car in terms of the FICO scores? Does one method help the scores more than the other?

[Anonymous]

No-A lease by definition is paying the depreciation on a given asset in a term.

When you BUY you are paying for the gross value for the term of the loan-

Unless you are upside down on a previous purchase or can fully deduct a lease - buying is usually a better option.

IMOO
- if you can't put 20% down you need =to re-think what you are trying to accomplish/doing,

There are plenty of examples of going to the dealer and buying a 30K car/truck the is worth 20-25K the day after you buy it.

I have very good friend with HIGHER fico's that have $750 a moth payments on 30K vehicles. They are upside down on the loan and and do not understand the system.

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@MLESPADA wrote:
Is there a difference between leasing vs financing a car in terms of the FICO scores? Does one method help the scores more than the other?

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[MLESPADA]

Ok! got it. Thanks.

[Anonymous]

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@Anonymous wrote:
There are plenty of examples of going to the dealer and buying a 30K car/truck the is worth 20-25K the day after you buy it.

I

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Wow, what kind of cars are you buying?
I have to say that since I like to drive a new car every few years, buying a car has long been taken out of my mind. I always lease for 3 years and get a new car at the end of the lease.
Many people have different opinions, and it works different for everyone (leasing when you own a company, for tax deductions, etc), so theres' no way of saying what's better or worst. In regards to FICO, it shows on your CRAs as an installment loan even if it's a lease.