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Is it hader to qualify for a car lease than it is to buy a car?

MisseyElliott
New Contributor

Is it hader to qualify for a car lease than it is to buy a car?

And what qualifications do you need to lease a car. 
Message 1 of 4
3 REPLIES 3
WhirledPeasPlease
Moderator Emeritus

Re: Is it hader to qualify for a car lease than it is to buy a car?

In Dec I leased a 28k car with scores in the high 500s/low 600s with one previous lease showing perfect payment history and income around 50k.
 
I got the impression that I could walk off any GMAC lot with my choice of cars.  They didn't flinch at income or scores when I upgraded from a 23k to a 28k vehicle.  (Saturn offers a 30 day no questions asked trade policy.)  The finance guy stressed that they look at previous history with GMAC above all else.
~*~*~*~*~*~*~*~*~*~*~
From 700 in 2008 to 498 in 2012...
4/23/12 -- BK 13 date of filing EQ = 505
4/18/12 -- EQ 498
12/5/13 -- EQ 669
Here we go.... back on track.
Message 2 of 4
cobra19
Valued Contributor

Re: Is it hader to qualify for a car lease than it is to buy a car?

As they say on TV..............if you work, you drive.
New York Yankees - 2009 World Series Champions. 27... and counting.....
Message 3 of 4
catzcradle
New Contributor

Re: Is it hader to qualify for a car lease than it is to buy a car?

It is usually harder to qualify for a lease than for a purchase because you are a bigger risk when you don't put down a down payment and you pay less per month.

However, if you can't afford to buy the car new, I would strongly advise you to at least consider making a purchase of a used vehicle instead of a lease. I know some people claim leasing is the way to go, but it's very easy to get into financial trouble with a lease if you aren't careful.

Be sure to go over the terms of the lease with a fine-toothed comb. I had a close friend lease a car about three years ago. It was a brand new Acura, very nice, and something she couldn't have afforded to purchase, but with the lease, it was hers. The catch was that when the lease was up, she had to either purchase the car at its depreciated value or turn it back in and start a new lease, paying the remainder of the "finance" charges if she turned it back in.

At the end of her lease, my friend decided to buy the car. They sold it to her at a price much higher than what the car was actually worth because the lease only has you pay for the "anticipated" depreciation. Therefore, she was "upside-down" in the loan - she was stuck with a debt of far more money than the car was now worth!

When she had a baby recently, she and her husband decided a 2-door sport coupe was no longer the best car for their family, but they couldn't sell it for the amount she owed on it! In order to sell the Acura, they had to take a $3000 loss - they sold the car but still owe $3k on the loan!

Leasing can be a good option if you are careful, but I would caution you against leasing a vehicle that you couldn't afford to actually purchase. Leasing is best if you like the feel and smell of a new car and just want to be in one more often. It's not a good idea if it's the only way you can get into a vehicle that you couldn't otherwise afford.

Basically, there are a lot of places in a lease contract that are easily misunderstood and you can make a very costly mistake if you aren't careful. Whatever you choose to do, good luck to you! Smiley Happy

Message Edited by catzcradle on 06-20-2008 03:37 PM
- Catz
12/01/09 TU 759 EQ 756

10/01/08 TU 697 EQ 659
07/05/08 TU 693 EQ 663 EX 711
06/01/08 TU 657 EQ 610 EX 670
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