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It's getting to the time where I have to make some deceisions on the cars, I have one car on lease right now (2017 VW Tiguan) that is due back in a month or so. Ideally I would like to just buy this one off the lease through a dealership, and then lease a car (not a VW) from a different dealership.
How sensitive are auto loans/leases to inquiries on a credit report.
Right now I have 3 inquiries on each of the bureaus and after the buy out it would be 4 and the lease app would make it 5.
My Fico Auto 8 is 762 and my CC util is 3%.
I have currently never missed a payment on the current lease I have (36 month lease).
I would really like to get some good terms here and roll everything on the new car into the lease payment and get away with $0 down.
Is there any chance I buy the car off of the lease and then get denied the new lease becuase of a recent auto inquiry/too many inquiries in general?
Any advice would be great!
I don't think that it would be declined due to inquiries. I mean sometimes in the business office we were just trying to get paper hung with someone so they would get sent out all over. Your scores are good enough to support prime financing. The only question is DTI would your income support two car payments. Tha is what the lender would want to know.
@SDMarik Your fine! I lease my 2017 GLI with a 650 or 660 back in 2017 and had tons of inqs and about 30K in credit card debt and still got approved! You should be a walk in the park!
A 760 score qualifies you for tier 1 through any captive lender that manufacturer's use. As stated above, you won't have any issues with getting approved due to # of inquiries. What might affect your approval is debt to income or payment to income ratios. That being said, with tier 1 credit I have seen plenty of approvals for much higher DTI. I do think that GM Financial is sensitive to number of open auto loans and will deny a lease if you already have multiple open auto loans regardless of debt to income ratios, but don't know of any other lenders that are that sensitive.
IMO, you should be completely fine and shouldn't have anything to worry about.
Similar boat - I have a Honda Clarity that is coming up for lease end and I want to keep her (best reliable car I have driven).
I could go back to the Honda Financial to convert the residual into a short term loan (24 months) but the rates are high (6% used car rate).
The only way I would consider using the captive's higher rate is if they would certify it (CPO) and extend the warranty.
If not, I would go to my CU where they are offering 2.5% up to 48 months.
OP: you are alike - I am looking at getting another car for the weekend - Land Rover Defender 110 (weekend only due to reliability issues in the past).....