I have terrible credit but want to lease a new car for 24 months. I was declined by Mazda even if they incured absolutely NO risk since all was paid upfront ! I really don't get this ! Anyone knows of a leasing co in Canada that will accept to lease if I pay the lease upfront ? Thanks
2007-12-28 01:07:49 · 9 answers · asked by Suspicious Borrower 1 in Cars & Transportation ➔ Buying & Selling
They are incurring a serious risk, even if you pay the total cost of the lease up front! Leasing is basically financing a vehicle, and at the end there is a balloon payment (residual value). You will have options at the end of a lease. You can pay the balance, and keep the car, or you can return the car in good condition and be done.
You may be paying all the payments, but there is still a balance that they are taking a risk with! If after 2 years you have gone over the allowable mileage, or the car has damage, they will have to collect the money due from you. You say yourself that you have "terrible credit". Due to your prior history, they are not willing to take the risk!
Your best move is to take the money you have, and buy a car for cash, or finance a very small balance (20% or less of the value) Pay your bills on time and rebuild your credit rating, and in a few years you can most likely get the car you want.
2007-12-28 02:18:15 · answer #1 · answered by fire4511 7 · 2⤊ 0⤋
Don't be offended but your terrible credit is more than a credit rating. It is a truth machine. Your credit shows that you are irresponsible, unreliable, untrustworthy, unstable, and a bunch of other 'UNs'. To prepay a lease is to say that you want a leasing company to pay a dealer $25,000 for a car that you will pay them $10,000 for prior to using the car for 24 months. At the lease end you promise to return the car to them in good condition and within the mileage paid for at the inception of the lease. Honest, you really mean it this time. The fact that you've never paid anybody before and have not kept your word should not enter into the equation this time. If the car is over on the miles, or damaged, you agree to pay the cost of reconditioning or for the extra miles. The leasing company says, "OK, I think he really means it this time." So, there is a risk on their part. There's a risk that they have decided not to take based on your history. If you have the money to pre pay a lease you have a chance of being approved for a loan of about 20% of the purchase price. You could shop with that intent and possibly get a good used car and begin the process of establishing better credit.
2007-12-28 02:50:35 · answer #2 · answered by Dogbettor 5 · 3⤊ 0⤋
How can you claim that Mazda will incur NO RISK when they own the car you are driving. Unless you pay for he car in full you don't own the car. And as long as they own the car they assume the risk.
If you have enough money to pay for the entire lease up front why don't you do the smart thing and pay cash for a good 3 year old used car.
2007-12-28 06:16:33 · answer #3 · answered by mccoyblues 7 · 3⤊ 0⤋
Not in Canada. The reason you were refused is becasue you are a bad credit risk and if you incur overages they are fearful they will not get money. They are incurring a risk. You ar leasing a vehicle they will get bacl. Call a car rental company. They are now leasing/renting long term. You can pay in advance. Enterprise is doing in states.
Good luck
2007-12-28 01:11:58 · answer #4 · answered by tone 6 · 3⤊ 0⤋
you are more likely to get approved on a small entry level car that you are financing 25% or less of it's value over a very short term. As in, take your $15000 or whatever you had in mind to do a prepaid lease, and finance a $19000 entry level car for like 2 years... it would be very hard for you to get upside down on the value of a car like that which means, very little risk to a lender... in fact, they might even hope you'll default so that they can make better money on repo'ing your car. Then you will establish credit and trustworthyness with that lender so that you can finance with them again when your loan is all paid off.... even if your credit bureau still isn't all cleaned up.
2007-12-28 01:29:15 · answer #5 · answered by f*ck yahoo, i'm doing google 4 · 3⤊ 0⤋
You answered your own question....You said you have terrible credit, right? Well, even though you might pay all 24 monthly payments up front, there is still a value left owed on the car. Thus, by your own statement you are not a worthy credit risk, why would someone let you have a car with a balance still owed.
2007-12-28 01:21:03 · answer #6 · answered by sfcjcl 5 · 4⤊ 0⤋
It's a privately owned company, and if they have no proof of your financial responsibility (which is what a credit score measures) how can they trust you with a car that is theirs after 24 months? They don't know you as a person, they don't know if 12 months down the road you will cause problems, burn the car, not pay for damages or extra fees, etc. Your credit score is an accumulation of you borrowing and repaying money which shows a lot about your integrity as a person. Any dealership has a right to refuse because it is their product just as your clothes are yours to do with as you please.
2007-12-28 01:13:39 · answer #7 · answered by ? 3 · 3⤊ 0⤋
In a nut shell as stated above the main word is (RISK) and maybe you can get pass that by not only paying your lease upfront but also try putting a larger deposit on the vehicle at the same time.
2007-12-28 03:12:46 · answer #8 · answered by Anonymous · 0⤊ 3⤋
if u have the cash up front for a 24 mo lease why not just buy a car...i dont see you logic!!!
2007-12-28 01:26:54 · answer #9 · answered by Anonymous · 1⤊ 2⤋