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He says a lease wont be approved but I may be approved for financing. And of course he comes up with a number for 7 years loan where I would have been paying 1.5 times the vehicle over the course of time.
If your credit is that bad and you can only afford the monthly payments over a 7 year period, then IMO you are looking at vehicles that are several times more than you can afford to drive.
How much cash can you save up? Go find a credit union and talk to them about how much used car you can afford to buy. And start looking at used Japanese cars. My husband and I only buy and own used Japanese vehicles. My husband and his buddies are all very happy with their used Toyota 4Runners. I'm a huge fan of Honda Civic hatchbacks. I've driven a $1500 Civic for three years now. Bought when it had 200K miles on the odometer, currently at 260K miles.
And in the meantime, work to improve your credit rating.
He says a lease wont be approved but I may be approved for financing. And of course he comes up with a number for 7 years loan where I would have been paying 1.5 times the vehicle over the course of time.
Please take the advice of those on here. If the best you can do is 15% over 84 months, a brand new car should not be in your financial equation.
Car shopping time and I wanted to lease but dealer wont let me citing my credit and wants to shove the 15+ APR financing on me.
I understand only excellent credit people get those lease advertised on dealer websites, but can fair/good credit people never lease at all?? Wont it be sufficient if I can pay a higher down payment ?
The dealer doesn't make that decision.
And if you ahve a down payment buy it. Even with the 15% APR if you're diligent about paying on time and take control of your finances you'll be able to refi in six months.
And if you ahve a down payment buy it. Even with the 15% APR if you're diligent about paying on time and take control of your finances you'll be able to refi in six months.
If the best OP can do is 15% for 84 months, the bolded clearly hasn't happened yet. Advising one to learn on the fly after a new car purchase may not be sage advice.
He says a lease wont be approved but I may be approved for financing. And of course he comes up with a number for 7 years loan where I would have been paying 1.5 times the vehicle over the course of time.
Regardless, Shanv . . .
High Interest either with a purchase or a lease is not a positive.
Financing is a game, they want you to pay more but if your credit sucks then you will have to bite the bullet.
1. Leasing is for people with good credit, so if they are quoting 15% car loans then your credit is not good. So they aren't refusing the lease but rather they can't find a lender that wants to lease to you!
2. 15% is not the worst, put more money down and I suspect the rate would come down 5% real quick.
3. The long payment term is trying to keep your payment low, to be competitive with some low dollar lease ad in the paper that you chased. So no you can't get a new fully loaded SUV with leather for $199 a month!
And if you ahve a down payment buy it. Even with the 15% APR if you're diligent about paying on time and take control of your finances you'll be able to refi in six months.
How can they refi on a car that would be then worth a lot less than the amount of the loan? This is not a real estate transaction we are talking about.
Car shopping time and I wanted to lease but dealer wont let me citing my credit and wants to shove the 15+ APR financing on me.
I understand only excellent credit people get those lease advertised on dealer websites, but can fair/good credit people never lease at all?? Wont it be sufficient if I can pay a higher down payment ?
If your credit is poor enough that you could not get better than 15% on a loan, it is almost a certainty that leasing won't solve the problem. All the decent lease deals will require better credit.
Pay your bills on time and start saving up your cash. Don't borrow money at double digit interest rates. With proper financial management and discipline, you can eventually (within a few years) get to the point where you can get a better car without paying an exorbitant amount for the privilege. Until then, you need to avoid buying things you can't afford.
I think you need to step back and reevaluate your financial situation.
Think of this as a wake-up call.
(FYI, I am not an anti-lease person. I outright own one new car, one 6 year old car, and I lease a high performance sports car. I only lease under very specific circumstances and if I come out ahead.)
This dealer is already telling you something you oight to pay attention to. That APR is insane. You must be a high risk.
Aim your sights lower on the car.
Look for alternate sources of financing.
Oh, and there will be *someone* out there who will give you the lease anyway.
But they are not doing you any favors.
Well said. The problem is the OP's credit is bad so he is a risk that few want unless an outrageous interest rate. Refused to believe such when I was in that same boat. As I got older and smarter I realized I was the one with the problem, not them.
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