topic Re: Auto Lease in Mortgage Loans

Auto Lease

Datgirl — Fri, 18 Jan 2008 19:49:48 GMT

I would like to lease a car - preferably the BMW 328i which is on special for $369/month through BMW financing. My credit score is 660 and I've been approved by Capital One for financing, however they don't finance leases. What are my chances of being financed by the dealer and still get a decent monthly payment?

Re: Auto Lease

CreditDrama85 — Fri, 18 Jan 2008 19:57:40 GMT

if you dont have a BK , you will qualify for sure. my friend leased with 2,000 down and his score was 550 with very high util, he did not have a BK

i think BMW looks at previous auto loans more than fico scores

Message Edited by CreditDrama85 on 01-18-2008 11:57 AM

Re: Auto Lease

Datgirl — Fri, 18 Jan 2008 20:07:14 GMT

If BK is Bankruptcy, no I don't. Do you know what kind of payments or interest rate he received? Thanks so much for the reply.

Re: Auto Lease

CreditDrama85 — Fri, 18 Jan 2008 22:58:14 GMT

yes, BK stands for Bankruptcy. and on a $46,000 car his payment was $579 a month for 39 months.

Re: Auto Lease

Anonymous — Sat, 02 Feb 2008 15:18:16 GMT

I know I'm late but did you find out any more info about doing this lease? I'm looking to do the exact same thing and I wanted to get some more info before I tried. I spoke with a BMW sales person and he said that they use all 3 Credit Bureaus and he's seen people in the low 500's get approved for a lease. He couldnt tell me what type of payment I'd be looking at and I dont want to do it unless I can get the $369 a month payment. My EQ score is 635 now and I believe you have to be tier 1 credit in order to get that promo but he didnt say. He said we'd have to pull my credit in order to get a more acurate picture. If you have any more info please update because I'm in the same boat as you.

Re: Auto Lease

fishbjc — Sun, 03 Feb 2008 00:46:56 GMT

In order to get financed with 550 scores, you'll probably need a very nice downpayment. I've heard bmw is hurting and trying to push cars out the door. Your interest rate may very well be a killer.

That $369 lease is for, basically, a basic car, not a lot of extras, plus tax you're probably looking at $425 with a high interest rate.

Will you keep us informed after you check it out?

Message Edited by fishbjc on 02-02-2008 04:46 PM

Re: Auto Lease

CreditDrama85 — Sun, 03 Feb 2008 00:46:52 GMT

there is no interest on a lease; either you qualify or you do not. the depreciation and/or value of the vehicle being leased is what matters most. and did you see the above post where a customer was told by a bmw rep that he had seen lease approvals with a low 500 fico....? this is not unusual

Re: Auto Lease

fishbjc — Sun, 03 Feb 2008 00:49:52 GMT

There may be no interest, per say, BUT when you figure out the capitalized cost reduction, residual value, etc. There IS a lot of cash being paid out.

Review the *rent charge* and calculate it. My lease comes to 7.9% interest although VW contract doesn't have an interest on the paperwork. I verified this with VW.

Re: Auto Lease

CreditDrama85 — Sun, 03 Feb 2008 00:52:50 GMT

it depends on how badly the finance manager wants you to have a car. i kid you not when i say i have witnessed 0% interest for 60 months with a 530 fico.

Re: Auto Lease

fishbjc — Sun, 03 Feb 2008 01:03:48 GMT

I understand what you're saying, but there usually are charges involved to lease a car. When people hear 0% interest to finance, they had better really look at those terms and figure out what the *true* costs are. My lease is 0%...until the costs are properly calculated., i.e. the rent charge.

The salesman can tell you he's had people approved for the lease with awful scores, but at what terms? Tier One is usually 760+. My girlfriend's scores are 780's and she received Tier One.

Message Edited by fishbjc on 02-02-2008 05:01 PM

Message Edited by fishbjc on 02-02-2008 05:03 PM

Re: Auto Lease

CreditDrama85 — Sun, 03 Feb 2008 03:40:32 GMT

i guess the real question is why are you being so negative? if the salesman told the prospective buyer that they have worked with scores in that range and have closed deals, your negative input that you want to be seen as realistic is not needed....

Re: Auto Lease

fishbjc — Sun, 03 Feb 2008 15:48:51 GMT

It IS needed because not understanding financing is why people are on the boards in the FIRST PLACE. I'm simply pointing out that it's necessary to really look at those terms without walking away and asking questions later when it's too late.

I've come across people on another board who simply did NOT realize what the true cost of that lease was, now they can't get out of it.

Re: Auto Lease

CreditDrama85 — Sun, 03 Feb 2008 15:59:52 GMT

your input is appreciated.... but, you have reinforced your negative outlook re: auto financing and even went so far as to carry that over and place judgement as to why the majority of forum members joined myfico......just like you think people with poor fico scores cannot get a good lease or auto loan rate, and think the majority of people out there joined this forum because they did not understand numbers.....im trying to get you to understand that although those scenarios may be likely.....there is ALWAYS an exception; so if a borrower happens to be an exception and comes here for advice--they instead got you telling them the deal they expect is not realistic....when what they may have needed was clarification on something; not to mention-- myfico forums would eventually be full of people that had YOUR point of view. understand?

Re: Auto Lease

fishbjc — Sun, 03 Feb 2008 23:37:55 GMT

Hey, if people want to sign on the dotted line without reading the fine print and checking the numbers, it works for me. I'm not the one paying their payments.

Re: Auto Lease

fishbjc — Mon, 04 Feb 2008 00:29:38 GMT

CreditDrama: I respect your opinion, but I am not required to agree with it. I have my opinions and am entitled to them.

Re: Auto Lease

Datgirl — Fri, 08 Feb 2008 13:15:38 GMT

I spoke to BMW and when they add all "other" fees the $369 quickly turns into about $425 and that's with Excellent credit. They told me they do have lease options for other credit levels. Also, the car is very basic and you'll be tempted to upgrade. If you look at swapaleasedotcom you will see that practically no one has leased the 3 series for under $500/month (Geesh). I skipped the BMW and bought a really nice Solara with very low payments. I'm very happpy!

Re: Auto Lease

tryingtogetitrightnow — Fri, 08 Feb 2008 15:36:18 GMT

Thanks for the update datgirl, and congratulations! Probably a wiser choice at this time. :-)

By the way, I think we've all been in the bad/not great credit situation. Some of us are still there and some of us are trying not to get back there again. I don't think we should be too sensitive about the advice that is given us.

I know that the scores that I have are where they are because I haven't been the smartest guy in the world. For example, 3 years ago I bought a brand new 2004 Chevy Trailblazer. When I look back on it, now I wish I would have bought a car that was a couple years old since it would either be paid off now or I would have had lower payments and I could have kept up with my credit when times got tough. If I would have done that, I could buy a house right now instead of waiting until the end of the year. I'm not going to beat myself up too much about it, but try to make sure I remember it so I don't repeat the same mistake when this car is paid off. So, long story short, I wish I would have had someone like fish be brutally honest with me at the time and tell me not to be an idiot and get a less expensive car.

Re: Auto Lease

fishbjc — Fri, 08 Feb 2008 20:08:23 GMT

I really hate those *teaser rates*. I saw my car advertised for $209/month for 24 months with $2k down. After viewing the car, it was a manual transmission with NO extras.

I walked out with a $330/monthly rate.

I'm happy you got a solara, I think you will be very happy with it, it's a beautiful car! Vroom, Vroom!

Congratulations!!!!

Re: Auto Lease

Datgirl — Mon, 11 Feb 2008 03:15:40 GMT

Thanks everyone for replying to this thread and congratulating me on my car purchase. Just like tryingtogetitrightnow I made some dumb decisions in my past and am still going through the credit re-building process. I really wanted a nice comfy vehicle with a few bells and whistles. I was looking all over the place - AUDI, BMW, HONDA etc. Well the AUDI and BMW were too expensive and maintenance is a mutha. The Hondas were boring but very reliable. I decided on purchasing a used (2005) Toyota Solara which has a few bells and whistles, is quite comfy, very sporty yet won't break the bank. I have absolutely no regrets. I am also proud of the efforts I've put forth the past two years to re-build my credit which allowed me to get approved with Bank of America. I am also proud that with this purchase I was very practical. Wishing all you excellent credit and prosperity, Datgirl

Re: Auto Lease

Anonymous — Mon, 11 Feb 2008 19:24:03 GMT

I was going to say.....the BMW's you see have NO POWER SEATS. Can you believe that ? Paying $$$ for a BMW that has NO power seats. BMW's are so over-rated. Plus they BREAK all the time due to the fancy electronics they carry. Good thing you went with the Solara. Congrats !