topic Re: Honda Finance Lease Approval Odds? in Auto Loans

Honda Finance Lease Approval Odds?

Anonymous — Sat, 15 Feb 2020 19:53:04 GMT

Credit Score: 718 EX FICO

AAoA: 11 months, oldest is AU 5 years

# of positive trade lines: 4

# of negative trade lines: 0

Income: $24k

Lenght of Employment: 1 month

Previous Loan Experience: No installment history

Debt-to-Income (DTI): 2%

Year of Car: 2020 Honda Civic

Miles: 0

Purchase/Refinance: Lease

Requested loan term (XX Months): 36

Down payment amount: $1000

Co-borrower/Co-Signer: If needed, spouse with score of 705 FICO could co-sign. Spouse has previous paid off Honda Loan (2017) no lates, current Honda Loan started one year ago, no lates.

Other: Only one tradeline reporting a balance, 30% utilization. Other 3 have been active in the last few months. My oldest TL is Capital One card, $5500 limit $0 balance and open 1.5 years.

Lease payment would be $310 to $330

Re: Honda Finance Lease Approval Odds?

Anonymous — Sat, 15 Feb 2020 21:16:11 GMT

Other people will hopefully give you better feedback. The feedback I have for you is your credit file is relatively new/short. Income and Job history of 1 month will probably work against you. What's the MSRP of the Honda Civic your looking at? If you check out Leasehackr forum you can research better deals. On the credit side the Income, 1 month job history, and no prior loan history might hurt.

Re: Honda Finance Lease Approval Odds?

Anonymous — Sat, 15 Feb 2020 21:40:59 GMT

Hi,

Thanks for the feedback. MSRP is $25,955 and "sale" price is $24,233. I should also note my housing costs are $0/month as my spouse pays these.

Thanks!

Re: Honda Finance Lease Approval Odds?

Anonymous — Sun, 16 Feb 2020 00:02:04 GMT

As long as you are approved for credit. I believe you should be able to lower the sales price by another $1k.

Re: Honda Finance Lease Approval Odds?

Anonymous — Tue, 18 Feb 2020 03:01:56 GMT

Anybody know what version of FICO score AHFC uses in Connecticut for a lease? Last year they pulled Experian, but not sure which type of score (Auto 9?).

thank you

Re: Honda Finance Lease Approval Odds?

donkort — Thu, 20 Feb 2020 16:08:43 GMT

Good enough FICO score----not enough time on the job.

How long were you at your previous job? Was there much of a gap between your previous job and your present job?

I would say that it's probably a "plus" if you were at your previous job 5 years, then immediately got this one,

Re: Honda Finance Lease Approval Odds?

Anonymous — Thu, 20 Feb 2020 16:21:38 GMT

Previously a full time student, four years undergrad and two years towards a graduate degree. Not sure if that helps. School was not in the US so can't get the Honda College Bonus.

Re: Honda Finance Lease Approval Odds?

donkort — Thu, 20 Feb 2020 16:28:40 GMT

It might help, actually. Can't make any promises, though.

How much of a down payment do you have? If you have a relatively large down payment, that would definitely help.

Re: Honda Finance Lease Approval Odds?

Anonymous — Thu, 20 Feb 2020 16:30:23 GMT

Thanks. Wouldn't be interested in more than $1k down on a lease. Could do $3k down on a loan.

Re: Honda Finance Lease Approval Odds?

donkort — Thu, 20 Feb 2020 16:33:46 GMT

Usually, from my experience, they ask for at least a couple of thousand dollars down for leases.

Re: Honda Finance Lease Approval Odds?

donkort — Thu, 20 Feb 2020 17:01:32 GMT

How much income does your spouse have?

They are not going to like 24K/year in income that much.

You might need a co-signer.

I had trouble even though I was at the same job over 30 years, and made $55,000 per year. My FICO was 640, auto enhanced, though.

Re: Honda Finance Lease Approval Odds?

Anonymous — Thu, 20 Feb 2020 17:06:52 GMT

Spouse has had 1 Honda lease (closed 2017), one GM lease (closed 2019) and current Honda loan opened a year ago. Put nothing down on GM and Honda Loan. No late payments and 9 years of credit history. $80k income.

My Experian Fico Auto 9 (which Honda might use in CT) is 740.

By the way, credit application is in, let's see how it goes!

Re: Honda Finance Lease Approval Odds?

sccredit — Thu, 20 Feb 2020 17:14:57 GMT

Do not put anything down on a lease. Aside from first month's payment you shouldn't be paying anything out of pocket. Something happens to that car whatever you put down is GONE.

Re: Honda Finance Lease Approval Odds?

donkort — Thu, 20 Feb 2020 17:28:55 GMT

Sounds like your spouse would be an excellent partner as a co-signer.

Good luck on the credit application. I wish you all the luck in the world.

Re: Honda Finance Lease Approval Odds?

Anonymous — Sat, 22 Feb 2020 01:03:59 GMT

To update everyone: after providing application information, they stated they wanted a co-signer. This is due to thin credit file (oldest account about 1.5 years).

My spouse filled out the application, then about 20 minutes later Honda asked for a copy of my SS Card and Visa or EAD (not from here). Fast forward 12 hours and the dealership got the green light to approve. Likely approved in one of the top tiers because there was no change in payment or residual.

Hope this helps anyone searching for answers, and thanks to all.

Re: Honda Finance Lease Approval Odds?

donkort — Sat, 22 Feb 2020 01:19:37 GMT

Congratulations. I'm glad you got what you wanted.

Re: Honda Finance Lease Approval Odds?

donkort — Sat, 22 Feb 2020 01:34:05 GMT

I would say: if you get two years on the job, and make a little more money, and have the credit score that you have now, that you'll be able to get a Tier 1 lease on your own.

Good luck on your journey.

I hope I can pay half of what I pay now for my lease. I was encumbered by having a 640 auto score, so I'm paying $400 for what would have been about a $250/month lease if I had a 760 or above auto score.