topic Re: need advice. in Auto Loans

need advice.

jsickz32 — Sat, 05 Jan 2013 14:36:34 GMT

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.

Re: need advice.

tooleman694 — Sat, 05 Jan 2013 14:57:33 GMT

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.

Re: need advice.

jsickz32 — Sat, 05 Jan 2013 15:00:03 GMT

My longest account is 4 years old...does that change anything?

Re: need advice.

Anonymous — Sat, 05 Jan 2013 15:04:38 GMT

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.

Re: need advice.

jsickz32 — Sat, 05 Jan 2013 15:35:04 GMT

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?

Re: need advice.

tooleman694 — Sat, 05 Jan 2013 15:36:23 GMT

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.

Re: need advice.

tooleman694 — Sat, 05 Jan 2013 15:37:00 GMT

You can lease any car.

Re: need advice.

jsickz32 — Sat, 05 Jan 2013 15:38:28 GMT

I havent even tried to finance nor apply for any loans. Im asking before i even try or go to any dealer

Re: need advice.

Anonymous — Sat, 05 Jan 2013 15:46:07 GMT

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.

Re: need advice.

Anonymous — Sat, 05 Jan 2013 15:52:18 GMT

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.

Re: need advice.

jsickz32 — Sat, 05 Jan 2013 15:57:44 GMT

Dont they pull your CR like crazy if you apply at the dealer? I dont want 30+ inqs from them. If im gonna finance i rather do it with a CU.

Re: need advice.

tooleman694 — Sat, 05 Jan 2013 16:05:53 GMT

yeah you get a ton of INQs, but they one count as one.

I find that the dealer can beat my CU rates typically, and I like to lease. So I let the dealer run me.

Re: need advice.

Anonymous — Sat, 05 Jan 2013 18:09:17 GMT

Not necessarily. If you have good to excellent credit, you get one or two. I only got two when I was approved for my Acura in Nov. 1 from the dealership and 1 from Acura Financial. You only get a bunch of inquiries if you get denied by banks multiple times or are shopping rates. If you get tier 1 auto financing from the dealer, there is no need to do either of those.

Re: need advice.

jsickz32 — Sat, 05 Jan 2013 18:19:16 GMT

Hey i was looking at the acura tsx for lease with 0 down. What would the requirements be for that offer?

Re: need advice.

Jutz — Sat, 05 Jan 2013 18:46:19 GMT

@jsickz32 wrote:
Hey i was looking at the acura tsx for lease with 0 down. What would the requirements be for that offer?

Hey! I thought you said RWD?

Not sure about leasing, but DCU is pretty great with auto loans. I'm not sure how it might work with a first time borrower, but technically you qualify for their 1.99% financing on new or used. They even just financed me on the 2006 S4 I just signed for (5.49% with my EQ at 660, at 675 I would have qualified at 1.99%)

Re: need advice.

Anonymous — Sat, 05 Jan 2013 18:47:54 GMT

Tier 1 through Acura Financial is 720. They tend to pull TU fico. My TU fico was 703 but auto enhanced, it was 724. So you have a good chance of getting the tier 1 lease offer from Acura with your 710 score.

Re: need advice.

jsickz32 — Sat, 05 Jan 2013 18:55:35 GMT

TU from letter from barclays says 710.

@Jutz
And you are right its FWD and i hate honda. Im a nissan fan so im gonna go to the dealer today to test drive the new altima and see if i like.

Re: need advice.

jsickz32 — Sat, 05 Jan 2013 19:07:03 GMT

Ill just stick to used cars..i have my eyes on this '05 evo 8. Ill apply for used auto loan and see what happens. Thanks for your help

Re: need advice.

tooleman694 — Sat, 05 Jan 2013 19:12:06 GMT

For you, used is probably the way to go. Get that loan under your belt and your good to go.

Re: need advice.

Jutz — Sat, 05 Jan 2013 21:54:49 GMT

In that case...DCU! Only problem is 05 I think is 1 year too old. Their criteria is that is needs to be paid off by the time the car is 12 years old. So if you do a shorter term you'd be fine, but their standard 65 month term may be too long. Either way, nice car. I used to drive an STi, always loved the Evo. Decided to grab the adults version of the 2 this time, haha