Ford Motor Credit Question

[Anonymous]

I filed bankruptcy (chapter 7) in December 2018 and it discharged in April 2019. I currently have a lease with Ford that is labeled as included in bankruptcy on my report. However, I did reaffirm the lease with my lawyer during the bankruptcy.

Here’s my question. I have 6 months left on my lease and I want to do another lease with Ford when this lease ends. This will be in May 2020. I’ve been on good terms with Ford and haven’t ever missed any payments as well as reaffirmed the agreement as I have stated already.

I have been working on rebuilding my credit. I have a credit one visa with good payment history and utilization, as well as a new Capital One card with a 1k credit limit. My scores range from 630-670 right now and I plan for them to be a little higher come time to apply for a new lease. I plan on putting down more than required for the lease at signing and make the rest in monthly payments. I plan on paying 8k upfront.

Do you guys think Ford finance me a new leased vehicle since I am on good terms and reaffirmed my current lease? Or am I going to have an issue?

[Anonymous]

Nobody has any insight on this?

[SFLSpotter9210]

There are some unknowns. Why do you lease your vehicles instead of buy? The only reason why you would put money down on a lease is to buy down the payment. Your just wasting money for no reason. Are you aware how a lease works?

[Anonymous]

Yes, I’m aware of how a lease works. I don’t see it as wasting money by paying a larger amount down than is necessary, it’s just my preference. I lease because I prefer to have a new vehicle every 24 months and I don’t want to worry about any mechanical issues. I also prefer to have lower monthly payments.

Now that I answered your questions. What about my original question?

[Gotham-]

So this is strictly IMHO...

Every Dealer is Different... if you have an established relationship with yours and basically know the Owners GM and the Salesperson who does your deals... I’m sure you will have less to no worry about your next lease... 1. You will have an internal auto credit score 2. Relationships with your Dealerships they will want to move cars 3. You might get stung with a higher down payment/Security but again you already said you’ll pay higher so good to go but let them determine what that might be rather than doing $8k unless y’all agreed on it

Just know that you are really helping the dealership by the pay down on depreciation on the vehicles you lease and can make them a decent profit when you turn in..and they sell as a CPO. So let them know you know so they can make better terms as you continue to lease and maybe check to see if your tax advisor can help you see a benefit from leasing

Best of new Knowledge on your deals!!!

P.S there are a few threads in here that may have some more answers and opinions !

[Anonymous]

Thank you for your reply! I’ll have about 8k Or so to put down if necessary. It doesn’t mean I will put it all down. I paid my 1st lease in full because I understandably had issues trying to get somebody to lease me.

As I stated above, I prefer to lease so I don’t have to worry about anything other than general vehicle maintenance and I would prefer a newer vehicle every 2-3 years. I also don’t drive very often, so it just makes sense for me.

I was out on disability for a few years and had numerous items hit my credit. Ford was the only manufacturer that was willing to work with me with scores in the low to mid 500s. I worked hard to get my credit score to the mid 700s and it really sucked losing all of the hard work I put into building it up. Credit card charge offs and judgements will do that to you unfortunately.

The bankruptcy was planned before I leased my original ford and I always had intentions to keep my obligation to ford. I was just worried that the bankruptcy would screw up my chances, even though I reaffirmed the original lease agreement.

Thank you for taking the time to reply. I really appreciate it. My post was originally marked as spam for some reason.

[SFLSpotter9210]

Maybe you should go and watch/listen to Dave Ramsey you might learn something from him. Good luck with whatever you decide.

[sccredit]

Ford has a reputation of extending credit to past customers with a good history, even with low scores at the time of new purchase.  I would say your chances of getting financed through Ford Credit are extremely good.  I don't know how it effects their credit decisioning when it somes to leases though.

[Anonymous]

For those that may come across this post and are wondering what the outcome was. We were approved by Ford for a 2020 Explorer Limited lease for 3 years 36,000 miles. 

nothing even came up about the bankruptcy. 

[sccredit]

Congrats!