Hugh Afare asked:
I want to lease a regular Japanese vehicle, maybe a Honda Accord, or a camry, and was wondering if I'll get approved. I have limited credit history, but I always pay my bills on time, and I have a reasonably good income to afford to pay a car or lease note.
Answer: If you've always paid your bills on time and have a steady empolyment history, then you should be good to go. You can see if you're good for an auto loan here: Easy Credit Auto Loans
Is it easier to take over a lease or buy a car when I have weak credit?
Luxury Cars at Auction
T o answer your question, yes. But you will be ripping yourself off.
Leasing:
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:
(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.”