I'm looking to lease a new car and my credit score is 650, do you think I'll get the loan?

Question

Thx

Answer 1

Maybe, but if you do, the dealer will probably say something like :

'Normally, you would not qualify due to your score, but we are going to make an exception in your case.  However, the payment is going to be a little higher than we originally discussed.'

Do yourself a favor and just walk out if you hear that.

Answer 2

Probably, but there are other factors involved when applying for credit such as but not limited to:job stability, income, previous credit, ability to pay back the note, etc. I've seen 700+ credit scores get turned down and seen 500 credit scores get approved. Every situation is different.

Good Luck

Answer 3

There will always be someone willing to give you a loan, but it will cost you - probably in the down payment, and in your interest rates.

You are better off getting financing for a GOOD used car, which will have a lower sticker price, and build your credit score.

Answer 4

Leasing is just rental with a time mandate, that is 1 of the reasons dealers push it, especially for lower credit scores, the other main reason is that it is a HUGE money maker for them.

Leasing example:

2007 Lincoln MKZ, MSRP $30,145 – $500 Rebate - $2,460 Park Central Ford discount = $27,185 + TTL.  Based on 39 month lease with zero down, 39 payments of $367.00 per month.  Total of payments = $14,313.  First months payment and security deposit of $0 due at lease inception.  Total due at signing $1,915 based on 10,500 miles per year subject to excess wear and tear for over mileage @ $.20 per mile over 34,125 miles.

Discount price: $27,185. + $1,915.ttl =  $29,100.  to own & use as wanted.

Note: that price is negotiable, see: http://www.usedcartips.org/index.html

(39payments X $367.) + $1,915.ttl =  $16,228. for permission to drive it 39 months, yet not more than 10,500 miles per year.

The salesperson will say you are “saving” $12,872. in reality the money would be well spent as the car is good for at least another 70,000 miles or 6.3 lease years.

6.3yrs = 75.6 months PLUS 2X for ttl renewal

10,500 miles per year/ 12 months = 875 miles per month

(75.6 payments X $367.) + (2 X $1,915.ttl) =  

$27,745.20 + $3,830. = $31,575.20 Cost to lease for 6.3yrs

(1st 39mon cost $16,228). + (6.3yrs cost $31,575.20) = $47,803.20 for a car that you can only drive 100,275 miles w/o penalty.  For a net loss of $18,703.20

39 + 75.6 =  114.6 TOTAL MONTHS X 875 MILES = 100,275

$47,803.20 - $29,100. = $18,703.20

Also to consider is the issue of lease end, where you must purchase the car, usually at a price above it’s actual value, or turn it in. If your financial situation is not good, at that point in time, it is possible to end up without a ride. Whereas, if it had been purchased, at the end of the financing [never go more than 3 years] the big monthly payment is gone.

A friend once told me, "when you earn a dollar your lucky to get 80 cents, but when you save a dollar you get the whole dollar, so it makes sense to work harder to save money than you do to earn it."