Lexus Financial & A New Start?

Anonymous · ‎12-10-2015

After a tough job loss in 2009 and falling into a financial pit, I made my way back to a fantastic job and will have all my debt/collections paid off this month. Still have student loans, some of which have had 90-day lates reported in the past few years. Had a vehicle repossesed in 2010, will finally have that paid off this month.

Question is, how long until I can purchase something? I have $700/mo for a vehicle lease from my employer, but I'm worried about qualifying for a lease. MyFICO estimator says I should be over 600 once I pay off my revolving debt ($1500 coming off next week).

Credit Score: EQ 582 TU 534 EX 595, EX Auto 8 612

AAoA: 15 year history

# of positive trade lines: 7

# of negative trade lines: 10 (6 of which are individual student loans from same lender, the bain of my existence)

Income: $95,000 (gross not including the $700/mo from employer)

Lenght of Employment: 4+ years

Previous Loan Experience: 2 auto loans, most recently ended in 2010 with repossession)

Debt-to-Income (DTI): 25%

Year of Car: 2015

Miles: 15

Purchase/Refinance: Lease

Requested loan term (XX Months): 36 mos

Down payment amount: TTL, approx $1500, could do $2000+

Co-borrower/Co-Signer: Lexus Financial Services lease

Anonymous · ‎12-10-2015

Welcome to the board... You have it give it 6 months to a year. Your scores need a bit of an improvement before anything thus including getting a car. Work on get your scores up and getting the lates of your report.

Anonymous · ‎12-10-2015

Why do such an expensive car while rebuilding credit?

Anonymous · ‎12-10-2015

@Anonymous wrote:
Why do such an expensive car while rebuilding credit?

In the original post, he said he had 700 month for a lease from his employer.

It appears he has a good job perk going there,so no reason not to use it, whenever possible.

I certainly would, if it was available to me!

Anonymous · ‎12-10-2015

@Anonymous wrote:
@Anonymous wrote:
Why do such an expensive car while rebuilding credit?
In the original post, he said he had 700 month for a lease from his employer.

It appears he has a good job perk going there,so no reason not to use it, whenever possible.

I certainly would, if it was available to me!

I didn't know the 700 is from employer for lease of car. Even if it is with a sub 600 score he probably wouldn't get approve for a lease. Might have a better chance with financing with high interest. Try capital one. If you can use the 700 for a car loan too.

Anonymous · ‎12-11-2015

Yes, I would receive $700/mo if I lease, $500/mo if I finance through my employer.

I wouldn't look at a pricey lease if it weren't for the bonus $200, and would rather try that route first.

Any idea when I could look at leasing? 620? 650? Do they take into consideration that my employer is paying? Thanks!

Anonymous · ‎12-11-2015

@Anonymous wrote:
Yes, I would receive $700/mo if I lease, $500/mo if I finance through my employer.

I wouldn't look at a pricey lease if it weren't for the bonus $200, and would rather try that route first.

Any idea when I could look at leasing? 620? 650? Do they take into consideration that my employer is paying? Thanks!

I would think 620 would get you a lease at a rate that would be 'tolerable', and 650 would be better.

In your case, a lease at just under 700, at the employer's expense is the same cost as a 600 lease, to you.

Does the employer pay the lease directly to the lender, or to you first? If it is directly to the lender, then it doesnt matter as much what the money factor on the lease is. Meaning same cost to you if the lease is 699 or 499, you just get less car. If it goes to you first, do they compensate for income tax effect?

Either way, a great perk for you.

Again, I would start looking when my scores are at 620 or above.

I would think if it would be titled in your name, they would have to consider you as the borrower. If you had a 3 year lease and left the company after 18 months, you would still be expected to pay for it.

HTH

Anonymous · ‎12-11-2015

Yeah--that's the main issue. If it went through my employer directly, I wouldn't worry so much about it. If employment ended, I'd just give the car back to them. It goes through my employer to me, depending on the cost of the lease (up to $700). They will adjust for income tax prior to compensating me, so it'll be more like $450-500/mo. Still enough to get a nice car on lease, with putting TTL down.

It's a great perk, yet stressful since I don't really want to commit to my employer and then get rejected by LFS. Then I'd have to go back to my employer and let them know I didn't go through with it.

Anonymous · ‎12-11-2015

@Anonymous wrote:
Yeah--that's the main issue. If it went through my employer directly, I wouldn't worry so much about it. If employment ended, I'd just give the car back to them. It goes through my employer to me, depending on the cost of the lease (up to $700). They will adjust for income tax prior to compensating me, so it'll be more like $450-500/mo. Still enough to get a nice car on lease, with putting TTL down.

It's a great perk, yet stressful since I don't really want to commit to my employer and then get rejected by LFS. Then I'd have to go back to my employer and let them know I didn't go through with it.

When you're ready to shop, I would suggest selecting a dealer with a good reputation and go in and talk with a salesperson and determine the model and options you would like. Tell them you have to apply and get the financing approved thru your employer and they have 'strict standards' on what you can get. Make it known the employer's plan is the bad guy in the transaction. Negotiate your best deal, making it clear it is dependent on the employer funding it, and it might take a couple days to go thru.

At the end of the year they need to clear out inventory and make sales goals. If you can get them while they need to make a sale, you should be able to get them to bump you up a couple tiers to get a decent rate.

If you have what you consider to be a good offer, submit it to your employer and get the car.

I did something similar with a Ford dealer a few years back. I let the salesman talk me into a loaded car with additional after market accessories added that the sales manager had been driving. It was a nice car, but had 8k miles and was over priced. I told them my CU would not approve the deal because it was too much money for a used car, but they said they would approve me on a new car, same model and base options, but at a better price. They believed me and let me out of first deal and gave me a better discount on a new one, just without the after market stuff.

I made the CU to be the 'bad guy', and they couldnt argue with them. You can make your employer the 'bad guy' with the veto power and use the end of year sales to your advantage.

I say its worth a try, and if you cant get a really good price with a good financing tier, leave and tell them to call you with a deadline in something like three or five days.

GL

Anonymous · ‎12-11-2015

Score aside, do you all think there's a chance with the repo on my report?