Dealer asked me to pay $5XX as the deposit to lease a car. And I paid it. Is it means that I am qualified to lease the car by the dealer with their criteria? Can dealer dispute the transaction by the reason of credit (They are not given the reject nor approval). Instead, they asked me to finance to buy the car at a higher monthly payment rather than lease the car at a lower rate. I checked my credit report and found that my credit is in a good stand. Only thing is my length of credit history is 12 months. Is this fact can be a reason of rejection? I have 2 credit cards of $500 limit, one is secured one, and another is normal one.
2007-11-19 15:02:10 · 2 answers · asked by alex83919 1 in Cars & Transportation ➔ Buying & Selling
Dealers always want to try to swindle you into something that means a bigger profit for them. Stick with what you want.
2007-11-19 15:10:24 · answer #1 · answered by Flatpaw 7 · 1⤊ 0⤋
Typically, credit requirements to lease a vehicle are more strict than financing a car. Though your credit score might be great (730+), you don't have any history built up basically showing that you pay your bills. Also, your debt to income ratio plays a big role as well. You probably can't get approved for the lease that you want the way it is currently structured, however you probably can get approved to finance at a slightly higher than normal interest rate.
Depending on your local laws, the dealer can use their best judgment by looking at your credit history to determine the best course of action. Sometimes they will know that a customer has no chance to get approved for the amount they want to finance and the dealer won't even submit the application.
Hopefully this helped a little
2007-11-20 00:42:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋