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Leasing a car - agreements and contracts signed but not allowed to drive car home

New Member

Leasing a car - agreements and contracts signed but not allowed to drive car home

Hi everyone, so I went to my local Lexus dealership and they recommended me to lease a 2019 NX300, and after they ran my credit and everything they had me sign all the paperwork and documents and had me pay the down payment and even put a sold sign on the car. But I was told that I still have to drive my old car back tonight because they still need 4 days to try and 100% approve me. This is the first time that I’ve experienced that after signing the contract you still have to wait for bank approval. Is this normal? Usually when this happens what are my chances? Thank you everyone. Pretty frustrating experience. When I asked the finance guy how good my chances are, he said one good thing is that I paid off my debt/charge off so that is a big plus. But I still don’t know the possibility of my getting completely approved. Thanks. It’s just really odd. Maybe the economy is getting worse and worse because a few years back when they give you your terms and payments and have you sign the contract that means you’re good. And if you don’t qualify then they tell you right away. But I guess not anymore. I even paid just a bit more than $4K down and still can’t get a 100% approval tonight. Really strange. I shouldn’t even be paying this much down payment for a lease. It’s just like renting a house, if you don’t qualify why would you even bother having them do all the paper and signing and agreements?
Message 1 of 10
9 REPLIES
Valued Contributor

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

It means they didn't get an auto approval from Lexus Financial so they are going to try and push it through.  What do your AUTO FICOs look like?

Ch 7 Discharge 3/12/2018
Credit One $700, Wayfair $5,000, Blaze MC $2,500
Infiniti Financial lease

AU Cards: CSP $37.7k; Chase Marriott $20k; Discover $7.8k; CapOne Venture $30k
Message 2 of 10
New Member

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

They just called me a couple of hours ago saying they want $3K down, I told them if the extra down payment can guarantee me the deal then I’ll do it, if not I’m gonna wait a little more until I get another loan. They didn’t say I was rejected they just said they’re still waiting for an answer but would need more down payment. So we will see what happens. He’s gonna call me back.
Message 3 of 10
Valued Contributor

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

So $7k down on a lease?  With that kind of down payment you are better off purchaing.  Never put a down payment on a lease.  

Ch 7 Discharge 3/12/2018
Credit One $700, Wayfair $5,000, Blaze MC $2,500
Infiniti Financial lease

AU Cards: CSP $37.7k; Chase Marriott $20k; Discover $7.8k; CapOne Venture $30k
Message 4 of 10
Frequent Contributor

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

That seems like something they should have told you *before* you signed the paperwork! Nothing you can do about it though (other than say no?).

It is not uncommon for something to be due at signing for leases. If I'm not mistaken, if you don't, it's just going to be calculated into your monthly payments anyway. However I would never put that much down on a lease. If you really want the car, go for it, but Id negotiate for them to adjust your monthly or I'd walk away. And that contract you signed already should obviously be voided because the terms (dates, etc.) have changed.

Something you might not have thought of... The end of the year is coming up. Dealerships have already started putting out crazy low deals for leases because they need to get rid of the old inventory by the end of Q4. I think a lot of them will be really be pushed in late November. You might have more options than you'd think. Especially since I think inquiries for car shopping w/in 30 says will be grouped with FICO 8.



Message 5 of 10
Established Contributor

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

I would recommend never putting money down on a lease. 2 reasons.  Interest, and insurance.

 

If you put 0 down, your monthly payments will go up, BUT if you put that down payment in a savings account, and take the extra out each month, you will end up with money left over at end of lease due to interest on your account.

 

If you put 0 down, and you get into a car accident a month later, your insurance (plus gap, always get gap) will pay off the lease, and you will owe nothing and have your down payment safely in a savings account.  If you put down money, and get into a car accident a month later, your insurance will pay off the lease, and you will owe nothing, and have nothing in your savings account.

 

 EDIT: slight revision to change tone form rule, to suggested advice.

Message 6 of 10
New Member

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

Just to update everyone
I got a call last night from the finance department saying he had great news and that I was approved from Lexus financial, everything worked out. They just need $1200 down from me (it’s understandable, I have no credit history and my credit score is only in the 500 range, I got mad at them for keep wanting a large sum of down payment from me so they deducted it to $1200, I told them I will have it next month and they’re totally fine with that, now I’m also waiting on my new job offer letter, once I have these two factors ready I can take the car home. They’ve already taken the car off their inventory list and sent me a thank you email for purchasing at their dealer. And since I payed even more down payment be said he’ll contact me in a couple of days to tell me my new lowered monthly payment.
The main reason that I was approved was also because I used to owe almost $3000 to a credit union, but before purchasing the car I payed it off in full so that’s a big plus for the bank/lender to see. And also my new job is at the post office and it’s a government job, it pays well and it’s stable so they know that I will be making the monthly payment on time and I’m a trustworthy person. But then again, I can only hope the offer letter comes soon, the government is so slow I’m about to lose my mind. But if the letter doesn’t come in on time, that’s fine. I’ll lose the deal, and get another loan once I’m fully prepared. It’s just that I’ll feel real bad for all the people that worked so hard on getting me approved.
Message 7 of 10
Valued Member

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home


@Angel1013 wrote:
Just to update everyone
I got a call last night from the finance department saying he had great news and that I was approved from Lexus financial, everything worked out. They just need $1200 down from me (it’s understandable, I have no credit history and my credit score is only in the 500 range, I got mad at them for keep wanting a large sum of down payment from me so they deducted it to $1200, I told them I will have it next month and they’re totally fine with that, now I’m also waiting on my new job offer letter, once I have these two factors ready I can take the car home. They’ve already taken the car off their inventory list and sent me a thank you email for purchasing at their dealer. And since I payed even more down payment be said he’ll contact me in a couple of days to tell me my new lowered monthly payment.
The main reason that I was approved was also because I used to owe almost $3000 to a credit union, but before purchasing the car I payed it off in full so that’s a big plus for the bank/lender to see. And also my new job is at the post office and it’s a government job, it pays well and it’s stable so they know that I will be making the monthly payment on time and I’m a trustworthy person. But then again, I can only hope the offer letter comes soon, the government is so slow I’m about to lose my mind. But if the letter doesn’t come in on time, that’s fine. I’ll lose the deal, and get another loan once I’m fully prepared. It’s just that I’ll feel real bad for all the people that worked so hard on getting me approved.

Just be careful ok.  I don't want them to be wasiting your time, like dangling a carrot in front of your face, just so you can't "shop" around to other dealers.  In the mean time, contact another dealer, but don't tell them about already going to another dealer to negotiate a deal.  It's not "Final" until you actually take delivery of the vehicle.  Most dealers also do defered down payments.  Ask them could you do a post dated check. Next month is quite awhile away for a dealer to hold a car.  Don't give them anything until you have read EVERYTHING.  

 

I just purchased a replacement vehicle after my other one I purchased 5 months ago was totaled, and the dealership i purchased the original car from, had the nerve to call me, and say I still owed them $500.  I said, "I gave you 2 defered checks, one for $500, the other for $1000. I don't owe you anything".  Welp, come to find out, the F&I guy, put in the paperwork that I actually had put $2000 down.  Just to push through the paperwork to Nissan Finance.  She wanted all this proof and mess, but she was playing head games and i told her I'm not paying it, because That is not what I signed on the defered check forms, or the checks that I wrote out.  

 

Still haven't heard a word back.  Also, make sure you are signing a lease form.  My cowork, got slipped up, thought she had signed for a lease, but the dealer did a bait and switch, and she was actually signing a balloon purchase contract, hence why she only put $1000 down.  I truly hope that you get the car that you want, but don't be afraid to venture out and explore other dealers.  You basically have a whole month.  Heck, raise those scores, and you might be able to tell that dealer that after thinking about it, my score is much better, and I want a better deal.  Or your walking.

 

Good luck, and be patient.  They want to work out the deal.  Just don't do a 5 year lease!  Yikes!

Who's the Queen of the land with the Golden Tiara upon her head, It is I, Queen Spadolot!
Message 8 of 10
New Member

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

Thank you for the kind advice. Trust me, this dealer has gotten on my nerves and when I take delivery of the car I will be asking for a finalized lease agreement and I will carefully read every word of it. I know a month is a long time, they’ll probably start bugging me in a couple of weeks, but like I said, there’s nothing I can do. No one can just easily give you any amount of money when you ask, and I can’t control the HR department to force them to give me an offer letter right now lol. So like I said, if I end up losing the deal that’s fine, but if they’re willing to wait then great. I’m hoping I can get the money sooner because I’m more than sure the down payment is what they really want from me. The ball is in my court now, you either wait or you lose a deal from me.
Message 9 of 10
New Member

Re: Leasing a car - agreements and contracts signed but not allowed to drive car home

The extra requirements are called "stipulations" in the industry. sometimes in order for someone to get approved, the lender requires a number of additional items. The dealer doesn't know that going in.. they only find that out when the lender tells them. The dealer then needs to handle the additional requests with the customer, and it sounds like the dealer is stumbling on this one.  Keep in mind that lender offers are typically only good for an established period of time (e.g. 30 days), so just make sure that if you still want the lease that you reply by that time, otherwise you may need to go through the painful process again. 

 

I always recommend that people get approved for financing online (before going to the dealer). That way the customer has communication directly with lender and can respond as necessary.  You can get leases through manufacturer's captive finance companies (they have access to lease incentives). Or.. a great alternative to a lease is residual based financing through FiWize.com (online financing). It is essentially a loan with an option to return the vehicle (like a lease) after you pay it down to the residual value.. or you can keep the car if you want to keep paying the loan. It's fairly new and pretty sweet monthly savings.  Good luck!!

Message 10 of 10