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Nervous about Lease

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Valued Contributor

Nervous about Lease

July 31 went to local Subaru dealer to look at getting a 2018 Crosstrek. Compared loan vs lease. I decided to lease. I told the sales manager I had TU FICO 8 was 745 which is what they pull. The sales manager said I was golden. Worked a killer lease at 2.9% but the car was out of town and he needs $500 down to secure it. Put that on my new Amex card and I would get the car on August 3.

 

I went home and applied for an auto loan from my credit union since I will have the hard pull anyway to see what would happen. August 1 the CU denies my loan application. "Insufficient Credit File" and "We will reconsider your request with a qualified co-signer". WTH! I see the HP from my CU and three HP from the dealership on my CR.

 

August 3 go to the dealership to pick up the car and was told that the auto hauler trailer busted an axel on the way to the out of town dealership. The car would not be in town until August 6. I completed the lease agreement and signed all the documents so when the car arrived at the dealership I could just get in and drive off.

 

August 6, at 9:30 pm the car is delivered to my home in the dark. Long story short, the Colorado Springs area of the state had a major hail storm which caused devastating damage to property. The driver of the auto hauler stopped in transit to allow the storm to pass. The car was delivered with no damage.

 

Today, August 9, Chase Bank makes HP on CR. I then get a call from the finance manager asking about my down payment as he is SUBMITTING my lease to Chase! He said he will let me know if there is any further financial obligation. W.. T... H..??? They have had 10 days to get my lease financing approved and they are just now submitting it to Chase. I have a signed lease agreement!?!?

 

I am freaking out a little bit. Can anyone in the myFICO community give me some insight as to that is going on???



















Your FICO credit scores are not just numbers, it’s a skill.

Message 1 of 14
13 REPLIES 13
Established Contributor

Re: Nervous about Lease

You always sign a contingent agreement that states that if they can't get financing for you that you bring the car back.  Most dealers will give you the car as you take mental ownership of it while they "Shotgun" your app to multiple companies trying to get it approved.  Sounds like the deal isn't finalized yet.......

" EX 698 EQ 701 TU 707 MMS 705"
Message 2 of 14
Valued Contributor

Re: Nervous about Lease

I thought they did leases through a captive lender? I have had no other inquiries, heck my three bureaus are frozen!



















Your FICO credit scores are not just numbers, it’s a skill.

Message 3 of 14
Moderator Emeritus

Re: Nervous about Lease

Honestly this is standard procedure for auto loans.

 

Don't sweat this, it wouldn't have been socialized with Chase if the F+I guy knew they weren't interested and willing to UW, there's just a few checkboxes sometimes to be cleared.  Inquires for auto loans are /shrug, scored as 1 if they're done in a 14+ day window (and that's the most conversative, modern algorithms are 45 days) and you should be fine.

 

As for Subaru:

 

https://www.chase.com/business-banking/dealer-services/subaru-motors-finance




        
Message 4 of 14
Established Contributor

Re: Nervous about Lease


@MauiMan85209 wrote:

You always sign a contingent agreement that states that if they can't get financing for you that you bring the car back.  Most dealers will give you the car as you take mental ownership of it while they "Shotgun" your app to multiple companies trying to get it approved.  Sounds like the deal isn't finalized yet.......


This is not correct in all locations. And is illegal in many states.

 

OP there is a good chance that if the financing is not approved the dealership will have to finance the deal itself to the original terms. They can only take extra money for a downpayment, or increase the interest if you agree. They will pretend you have to sign new paperwork, or pretend that you will need to return the car, but it is not true. They just don't want to be financially responsible for the lease.

 

If you aren't able to read your paperwork yourself, if might be worth asking a lawyer to take a look and see what the responsibility is. A lawyer will also be familiar with applicable state laws.

Message 5 of 14
Valued Contributor

Re: Nervous about Lease

I still haven't heard from Chase, and to top it off, I have to replace my windshield as a rock chip on the edge of glass has cracked the windshield. I have had the car seven days and the windshield is cracked. My other vehicle which I have had for 11 years has multiple rock chips but never a crack! Grrrrrrr.



















Your FICO credit scores are not just numbers, it’s a skill.

Message 6 of 14
Established Contributor

Re: Nervous about Lease


@Medic981 wrote:

I thought they did leases through a captive lender? I have had no other inquiries, heck my three bureaus are frozen!


Subaru doesn't have a Captive lender they use Chase.

Message 7 of 14
Community Leader
Senior Contributor

Re: Nervous about Lease

OP, @Revelate mentioned there is nothing to worry about.  In my previous career I was a paper spinner multi-line GM dealership.  What you experienced is what we call a Spot delivery.  You'll be fine.  The dealer has absolutely NO incentive to unwind the deal and to bring that vehicle back.  If there was even the SLIGHTEST of chances that this vehicle wasn't financed the dealership would be all over you like a cheap suit as they'd then be on the hook for that vehicle.

 

Just relax, get that windshield fixed, and enjoy your nice new ride!  Congrats!!!

Message 8 of 14
Valued Contributor

Re: Nervous about Lease


@Loquat wrote:

OP, @Revelate mentioned there is nothing to worry about.  In my previous career I was a paper spinner multi-line GM dealership.  What you experienced is what we call a Spot delivery.  You'll be fine.  The dealer has absolutely NO incentive to unwind the deal and to bring that vehicle back.  If there was even the SLIGHTEST of chances that this vehicle wasn't financed the dealership would be all over you like a cheap suit as they'd then be on the hook for that vehicle.

 

Just relax, get that windshield fixed, and enjoy your nice new ride!  Congrats!!!


I wanted to update the forum on my lease experience.

 

I have been approved for a lease with Chase Bank. Just received my first auto lease payment coupon in the mail today from Subaru Motors Finance. The letter is dated August 25, 2018. Today is September 1, 2018. The payment is due September 4, 2018. 

 

This does not leave a very good first impression with me concerning how JPMorgan Chase Bank does business. I was worried whether or not Chase was going to finance my lease. After reassurances from members of the forum, I decided not to worry about it. Then it has taken Chase this long to send me the account information to be able to make a lease payment. I just thought that others may want to know what my experience.

 

For those that are unaware, the name Subaru Motor Finance is licensed to JPMorgan Chase Bank who owns the loans and leases made under Subaru's name.

 

 



















Your FICO credit scores are not just numbers, it’s a skill.

Message 9 of 14
Valued Contributor

Re: Nervous about Lease

I previously had Chase for my Subaru loan. I paid on-line right next to my Chase credit cards and never had any issues.

Message 10 of 14
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