Reconsideration after Auto Lease Denial?

Anonymous · ‎03-01-2019

Hi all,

This past week I was able to negotiate a great lease deal on a 2109 Subaru Forester. I’n addition to getting the price down to $3000 below MSRP and a residual value of .63, the dealer was also willing to value my trade in at exactly what was left on my existing car loan (even though the car is definitely worth less that what I owe). This put my monthly payment at around $50 less than my current car payment.

Then...I find out that Subaru auto finance won’t approve me for the lease because my DTI is too high. Sigh... however, Chase told the finance department that they will have no problem approving a loan for me to purchase the car (which would require a monthly payment I can not afford). My DTI is high because of student loans. That being said, I am able to meet my monthly financial obligations on my current salary and still have money left over, and given that this lease would lower my monthly car payment, this puts me in an even more comfortable financial situation.

To top it all off, I have a previous relationship with Chase bank as they are the bank that my checking account is through, and they are one of my student loan lenders (or they were until the loan got sold).

My question is this...can I call up Subaru Motors Financing (I.e. Chase) and ask them to reconsider? I don’t know that it will work given that my DTI hasn’t changed, but maybe I’ll catch someone in a good mood or something....

Anonymous · ‎03-01-2019

I have had the dealership lobby for me in the past but never did it myself.

Ford has argued to get me into Tier 1 financing and things like that.

Chase told the finance department that they will have no problem approving a loan for me to purchase the car (which would require a monthly payment I can afford).

I think you meant can't afford right?

Have you considered a longer term loan? 7 years to be exact.

I did that on my CPO Audi to keep my payment lower. What was important to me besides the lower payment was making sure I am right side up when the warranty expires. In my case that's 46 months unlimited miles. Looking at an amortization sheet it looks that way to me.

So I am kind of considering my 7 year loan like a lease planning to trade it in within 46 months before warranty expires. I'm actually paying less than it would have cost to lease it.

Anonymous · ‎03-01-2019

Lol yes I meant *Can’t* afford.

That is a good suggestion. The vehicle’s value at the end of the loan is also what keeps me from wanting to buy right now. Given what I can afford I would need to extend the loan out a few years and while I know Subaru’s are good at keeping their value I’m not sure they are THAT good.

Something tells me that the finance dept didn’t do much lobbying on my behalf. Right now I’ve got someone from a different, much larger dealer going to bat for me. After I explained the situation he told me that given everything I told him about my credit history I should be approved, maybe not for tier 1 financing but approved nonetheless. I told him if he can come close and/or match the deal from the other dealer and get my financing pushed through I will buy from him tonight, so we will see. I’m not getting my hopes up bc I’m not sure how much of a say the dealer has in financing approval.

MitchDeerfield · ‎03-01-2019

If you resubmit the offer to Subaru as a purchase order, it is very likely they will give you better terms than Chase did. Lease contracts require better credit scores than purchases do.

Anonymous · ‎03-01-2019

UPDATE: explained my situation to a different dealer and they were able to get me approved! Chase asked me to explain a couple of old collections on my credit report, and apparently were satisfied with my answer. Going to pick up my new car tonight.

...best part is that they are giving me the same deal as the first dealer.

sccredit · ‎03-01-2019

@Anonymous wrote:
UPDATE: explained my situation to a different dealer and they were able to get me approved! Chase asked me to explain a couple of old collections on my credit report, and apparently were satisfied with my answer. Going to pick up my new car tonight.

...best part is that they are giving me the same deal as the first dealer.

Congratulations!!

Anonymous · ‎03-05-2019

Congrats!

A good dealer should alwas fight for you with the financing company and what did it take a call or two that's all.