Buying out my lease with shitty credit
11-23-2012, 08:51 PM
#41
Racer
it wasnt as bad before we lease. it was like a 640-660 when i got it. i could have financed it but the payments were higher. i negotiated it as a purchase first to get that residual down and then decided to lease it with the intention to purchase it before the lease was up.
i did have a few missed payments which screwed it up even more. now i think its sub 600. i have to get a credit report and check the real score.
ya i can check to see if i can co sign but i dont want to rely on that.
i did have a few missed payments which screwed it up even more. now i think its sub 600. i have to get a credit report and check the real score.
ya i can check to see if i can co sign but i dont want to rely on that.
11-23-2012, 09:21 PM
#42
Was it a Honda/Acura lease? I really doubt you did it with a HFS/AFS lease. At this point you're trying to save face. We dealt with this on a daily basis for people....Honda/Acura doesn't negotiate. End of story regardless of whatever fantasy land you're from.
And you have no idea what Honda does with leases. I do. They purchase insurance to cover any loss at the lease end term when its originated for every lease they do. Honda doesn't lose....period. That is why they take the cars and don't negotiate. They get paid from the insurance company. You think they'll sell some haggler like yourself the car for under the purchase buyout when they get full value from the insurance? LOLLOLOLOLOL!!!! So right there, knowing what I know...I know you're full of shit, ceb.
Go look up all this stuff its all on the internet. They don't give a rats ass who you are....you turn the car in or buy it out at the contract price. It's been like that for a long, long time now. Search this very site there's a few threads about it. I know it's hard for some people to grasp that a car salesman is actually telling the truth on this matter...but it is true. I deal in absolutes and truths. Continue to deal in fantasy.
You probably think the US dollar is real.
And you have no idea what Honda does with leases. I do. They purchase insurance to cover any loss at the lease end term when its originated for every lease they do. Honda doesn't lose....period. That is why they take the cars and don't negotiate. They get paid from the insurance company. You think they'll sell some haggler like yourself the car for under the purchase buyout when they get full value from the insurance? LOLLOLOLOLOL!!!! So right there, knowing what I know...I know you're full of shit, ceb.
Go look up all this stuff its all on the internet. They don't give a rats ass who you are....you turn the car in or buy it out at the contract price. It's been like that for a long, long time now. Search this very site there's a few threads about it. I know it's hard for some people to grasp that a car salesman is actually telling the truth on this matter...but it is true. I deal in absolutes and truths. Continue to deal in fantasy.
You probably think the US dollar is real.
11-23-2012, 09:32 PM
#43
it wasnt as bad before we lease. it was like a 640-660 when i got it. i could have financed it but the payments were higher. i negotiated it as a purchase first to get that residual down and then decided to lease it with the intention to purchase it before the lease was up.
i did have a few missed payments which screwed it up even more. now i think its sub 600. i have to get a credit report and check the real score.
ya i can check to see if i can co sign but i dont want to rely on that.
i did have a few missed payments which screwed it up even more. now i think its sub 600. i have to get a credit report and check the real score.
ya i can check to see if i can co sign but i dont want to rely on that.
I'm sure you're a nice guy but why should anyone co-sign a loan for you when you have demonstrated that you don't pay your bills. Quite simply they'd be much off just giving you money with no expectation of ever getting it back - then be pleasantly surprised when they get a dime on the dollar back.
The cold hard truth is that you'll have to work extremely hard to get yourself out of that hole and it'll be painful - and include driving a rattletrap for a few years.
11-24-2012, 09:40 AM
#44
Has this been discussed yet?
Isnt the OP in VIOLATION of his lease agreement having modded his car?
I know when i leased an Audi a few years back there was specific language in the lease agreement about not being able to make certain changes to the car
Isnt the OP in VIOLATION of his lease agreement having modded his car?
I know when i leased an Audi a few years back there was specific language in the lease agreement about not being able to make certain changes to the car
11-24-2012, 09:45 AM
#45
11-24-2012, 10:35 AM
#47
Racer
I was told by the dealer that there were no restrictions through AFS. Was anyone else told different? And if he plans on buying it out, the mileage and mods don't matter.
11-24-2012, 12:10 PM
#48
Drifting
Thread Starter
i can put the car back to OE but it would be pain in the ass to take everything off and trade/sell them.
11-24-2012, 12:17 PM
#49
In that case you are in to your TSX way over your head. With a declining credit score in this economy you'll be looking at buying your next car at a buy here, pay here place.
I'm sure you're a nice guy but why should anyone co-sign a loan for you when you have demonstrated that you don't pay your bills. Quite simply they'd be much off just giving you money with no expectation of ever getting it back - then be pleasantly surprised when they get a dime on the dollar back.
The cold hard truth is that you'll have to work extremely hard to get yourself out of that hole and it'll be painful - and include driving a rattletrap for a few years.
I'm sure you're a nice guy but why should anyone co-sign a loan for you when you have demonstrated that you don't pay your bills. Quite simply they'd be much off just giving you money with no expectation of ever getting it back - then be pleasantly surprised when they get a dime on the dollar back.
The cold hard truth is that you'll have to work extremely hard to get yourself out of that hole and it'll be painful - and include driving a rattletrap for a few years.
You should never lease or buy anything you can't comfortably afford.
You def shouldn't be spending 1000s modding the car you can't afford.
My advice is sell your mods and get close to being financially stable or put it Twds the down payment on a used car.
Don't buy out the lease.
Return it or sell it if you can get money back or break even.
buy something cheaper.
By the sound of it. Your interest rate is gonna be astronomical.
Buy a used car. Something probably below 10k. You can prob get a decent 1sr gen tax or a 3rd gen TL for that if you're looking for something similar.
Do this until you can get your credit score back up. If you make payments on time, it shouldn't take but a few years.
If you can't make a payment. Call and talk to your lender. They are usually willing to work with you. They can skip a month and add it to the end so you have a month catch up. I've done this before when I hit a rough patch.
As for modding a leased car, you can do whatever you want to your leased car. They don't care as long as you return it to stock when you return it or you can sell it on your own. If you return the car with mods like springs or something, they'll deduct the cost of replacement to oem from the value of the car.
It's like selling a car with a huge dent in it. They'll consider the cost of fixing it in to the value of the car.
11-28-2012, 02:08 PM
#50
I think you should just keep paying the lease payments for now. Save some money for a down payment to contribute toward the buyout.
2. Join myfico.com and subscribe for their credit score monitoring. These are real FICO scores with real time Equifax monitoring and you can also buy the Transunion FICO too. Credit Karma is a free option, but the scores aren't FICOs. Still, I think Credit Karma gives a good picture on your credit and you should have both.
2. Join myfico.com and subscribe for their credit score monitoring. These are real FICO scores with real time Equifax monitoring and you can also buy the Transunion FICO too. Credit Karma is a free option, but the scores aren't FICOs. Still, I think Credit Karma gives a good picture on your credit and you should have both.
11-28-2012, 02:59 PM
#52
it wouldnt hurt.
youre basically financing the balance of the total after the lease payments.
if you have 15k more to pay, you could put down a little bit to make the payments easier or if you only qualify for a lower amount.
youre basically financing the balance of the total after the lease payments.
if you have 15k more to pay, you could put down a little bit to make the payments easier or if you only qualify for a lower amount.
11-28-2012, 09:21 PM
#53
With poor credit you'll have to put down a big chunk of change in order to get financed.
You should take a financial management class so you can learn how this stuff works.
It is pretty simple though. The banks know that I will pay my bills because they understand that the only reason I got a loan in the first place was because it was free credit and I have never had a late payment in my life.
For someone with a FICO score in the 600 range, the bank has no assurance that the bills will be paid on time - or paid at all. Accordingly, the bank will want to assure that you have a huge stake in the purchase so you don't want them to repo the car. A 600 score will require a 30-50% downpayment in order to get a reasonable rate.
You should take a financial management class so you can learn how this stuff works.
It is pretty simple though. The banks know that I will pay my bills because they understand that the only reason I got a loan in the first place was because it was free credit and I have never had a late payment in my life.
For someone with a FICO score in the 600 range, the bank has no assurance that the bills will be paid on time - or paid at all. Accordingly, the bank will want to assure that you have a huge stake in the purchase so you don't want them to repo the car. A 600 score will require a 30-50% downpayment in order to get a reasonable rate.
Last edited by ceb; 11-28-2012 at 09:24 PM.
11-29-2012, 10:20 AM
#54
Drifting
Thread Starter
With poor credit you'll have to put down a big chunk of change in order to get financed.
You should take a financial management class so you can learn how this stuff works.
It is pretty simple though. The banks know that I will pay my bills because they understand that the only reason I got a loan in the first place was because it was free credit and I have never had a late payment in my life.
For someone with a FICO score in the 600 range, the bank has no assurance that the bills will be paid on time - or paid at all. Accordingly, the bank will want to assure that you have a huge stake in the purchase so you don't want them to repo the car. A 600 score will require a 30-50% downpayment in order to get a reasonable rate.
You should take a financial management class so you can learn how this stuff works.
It is pretty simple though. The banks know that I will pay my bills because they understand that the only reason I got a loan in the first place was because it was free credit and I have never had a late payment in my life.
For someone with a FICO score in the 600 range, the bank has no assurance that the bills will be paid on time - or paid at all. Accordingly, the bank will want to assure that you have a huge stake in the purchase so you don't want them to repo the car. A 600 score will require a 30-50% downpayment in order to get a reasonable rate.
nah id rather turn in the lease and trade in my aftermarket parts than pay a huge down payment on a car.
11-29-2012, 10:55 AM
#55
11-29-2012, 10:59 AM
#56
Racer
Awhile back, I went through Prestige Financial and it is a really good finance company for people with less than perfect credit. They offer a 0.5% APR decrease every six months if your account is good standing. But you'll still end up with 14.5% APR after the deductions.
Now, Prestige Financial doesn't play when it comes to paying on time. They off no grace period so if it is due on the 15th it is due on the 15th. One day late, and that information ends up on your credit report so you need to be certain you can afford the amount. Additionally if you late, they will increase your APR to the max 21%. So you will need to put the payment on an auto payment plan to make sure it is paid on the due date specified by the bank. Prestige also watches your insurance like a hawk and the minute you lapse in coverage, your payment will balloon as they will add coverage for you that is way more expensive.
11-29-2012, 11:24 AM
#58
Drifting
Thread Starter
I apologize OP if you mentioned this before but what is the buyout amount on your lease? If you start repairing your credit now by paying your bills on time, you could get financed through a subprime lender like Prestige Auto Finance. If the buyout is no more than $16,000, you could get financed through Prestige with zero down and a monthly payment of $400 per month. Is $400 a month doable given your current finances OP?
Awhile back, I went through Prestige Financial and it is a really good finance company for people with less than perfect credit. They offer a 0.5% APR decrease every six months if your account is good standing. But you'll still end up with 14.5% APR after the deductions.
Now, Prestige Financial doesn't play when it comes to paying on time. They off no grace period so if it is due on the 15th it is due on the 15th. One day late, and that information ends up on your credit report so you need to be certain you can afford the amount. Additionally if you late, they will increase your APR to the max 21%. So you will need to put the payment on an auto payment plan to make sure it is paid on the due date specified by the bank. Prestige also watches your insurance like a hawk and the minute you lapse in coverage, your payment will balloon as they will add coverage for you that is way more expensive.
Awhile back, I went through Prestige Financial and it is a really good finance company for people with less than perfect credit. They offer a 0.5% APR decrease every six months if your account is good standing. But you'll still end up with 14.5% APR after the deductions.
Now, Prestige Financial doesn't play when it comes to paying on time. They off no grace period so if it is due on the 15th it is due on the 15th. One day late, and that information ends up on your credit report so you need to be certain you can afford the amount. Additionally if you late, they will increase your APR to the max 21%. So you will need to put the payment on an auto payment plan to make sure it is paid on the due date specified by the bank. Prestige also watches your insurance like a hawk and the minute you lapse in coverage, your payment will balloon as they will add coverage for you that is way more expensive.
ya $400 is doable. by the time my lease is up, our RDX will be fully paid off and we were paying $600 on that alone. wife and i were making over $160k a year but we just keep buying things
main reason is i need to stop buying new guns and fixing thing them up :X
11-29-2012, 11:42 AM
#60
Drifting
Thread Starter
i cant find the paperwork in my car. ill look for it at home. i think the buy out was $15k-17k.
11-29-2012, 01:46 PM
#61
Moderator
i still think the best solution is to have someone co-sign..
nothing wrong with asking for alittle help when you need it, especially when its from family..
wow your income is so high and you cant cover the buy out of 16k? you have a 15 months to save up so you should be fine to put a large down payment..
nothing wrong with asking for alittle help when you need it, especially when its from family..
wow your income is so high and you cant cover the buy out of 16k? you have a 15 months to save up so you should be fine to put a large down payment..
11-29-2012, 01:55 PM
#62
yea i'm with potmilkz...if u stop buying guns and accessories from today onward and start consciously saving for your car, you should be fine by the time your lease runs out.
i would hate to see you return your car after spending so much time and effort on it. seems like a waste.
i would hate to see you return your car after spending so much time and effort on it. seems like a waste.
11-29-2012, 02:47 PM
#63
Drifting
Thread Starter
i still think the best solution is to have someone co-sign..
nothing wrong with asking for alittle help when you need it, especially when its from family..
wow your income is so high and you cant cover the buy out of 16k? you have a 15 months to save up so you should be fine to put a large down payment..
nothing wrong with asking for alittle help when you need it, especially when its from family..
wow your income is so high and you cant cover the buy out of 16k? you have a 15 months to save up so you should be fine to put a large down payment..
also i read that never put a large down payment on a depreciating car.
how often do people put a down payment when they buy out their lease?
11-29-2012, 02:48 PM
#64
Drifting
Thread Starter
yea i'm with potmilkz...if u stop buying guns and accessories from today onward and start consciously saving for your car, you should be fine by the time your lease runs out.
i would hate to see you return your car after spending so much time and effort on it. seems like a waste.
i would hate to see you return your car after spending so much time and effort on it. seems like a waste.
thats why i dont want to turn it in.
11-29-2012, 03:39 PM
#66
Drifting
Thread Starter
Defcon those are amazing incomes!
11-29-2012, 09:29 PM
#68
Buying out a lease is is no different than flat out buying any car from a dealer. If your buyout is $15k then it is identical to buying any car for $15k. The bank or credit union will determine how much money they want to loan you. The difference between what they will loan you and the $15k is the amount you need to cough up.
How much will they loan you? Who knows, but many banks will look at how much they expect the car to be worth in a half year in poor condition, subtract repo costs and look at that as a max loan.
11-30-2012, 12:20 AM
#69
Racer
The no down payment rule pertains only to a lease as that is money tossed out the window if you wreck the car or turn it in early. That does not apply to a purchase.
Buying out a lease is is no different than flat out buying any car from a dealer. If your buyout is $15k then it is identical to buying any car for $15k. The bank or credit union will determine how much money they want to loan you. The difference between what they will loan you and the $15k is the amount you need to cough up.
How much will they loan you? Who knows, but many banks will look at how much they expect the car to be worth in a half year in poor condition, subtract repo costs and look at that as a max loan.
Buying out a lease is is no different than flat out buying any car from a dealer. If your buyout is $15k then it is identical to buying any car for $15k. The bank or credit union will determine how much money they want to loan you. The difference between what they will loan you and the $15k is the amount you need to cough up.
How much will they loan you? Who knows, but many banks will look at how much they expect the car to be worth in a half year in poor condition, subtract repo costs and look at that as a max loan.
11-30-2012, 12:27 AM
#70
Racer
OP it sounds like you have a great plan. Your income helps offset the bad credit some. I know cause I had bad credit before but also a lot of income, and that factored into their decision. Also your savings accounts and 401K amounts are looked at by some lenders as unguaranteed collateral.
11-30-2012, 10:00 AM
#71
The general advice right now is to just pay your lease payments until the end of the lease. The buyout amount is likely going to be a decent deal when the lease is over and will require the least amount of upfront cash assuming you want to pay for all of it at once. Also your monthly payments should be lower after you buy the car.
On top of that you said that your credit was better when you got the lease than now so you might as well take advantage of the deal you have now and milk it for as long as you can until it's over. Getting a new loan now is not a good idea imo.
My credit is good, but in May 2013, we may still not have a new TLX hybrid and I am closely examining other models too like the 2013 Accord Hybrid (should be a precursor to the new TLX hybrid), the Lexus ES 300h, and the Camry Hybrid. I am basically all in for hybrids since I have a 60 mile round trip commute but that's a bit aside from the point. I'd like to trade in the TSX Tech I have for one of these, but I'm willing to wait to xmas time 2013 if need be even if that means buying the car in May 2013 and then trading it in soon after.
You do have over a year to improve your score, so I think you should try to lower your revolving debt (credit cards mostly) as much as you can, and pay your car payments on time every time from hereon. Best thing you can do is lower the monthly debt to income ratio (add all your minimum debt payments for a month and divide it by your monthly gross income) though it looks like yours should be good given the household income you listed. This should raise your score when you get closer to that buyout time.
Many other folks here mentioned that having multiple previous loans with the same car lender may allow you to get more favorable terms with a lender, so it is more imperative that you pay your bills on time every time from now until the end of your lease.
11-30-2012, 10:54 AM
#72
11-30-2012, 11:07 AM
#73
Drifting
Thread Starter
my wife's dental office got bought out so a couple of patients stopped coming which affected her days. we're at $150k now but it should be going up again since she switched to a newer office.
11-30-2012, 11:09 AM
#74
You also didn't finish reading my sentence. Any money you put down on a lease is gone if you wreck it or sell it.
Let's look at that $30k car. You put $1k down so you owe $29k. A year down the road you wreck it. You have a $500 deductible and you have GAP insurance.
The car is a total loss and the insurance values it at $25k. They give you $24.5k and the GAP makes up the difference to the $26k that you owe.
That $1k you put down is gone, gone, gone.
If you had not put any money down then the GAP insurance would have paid the extra difference between what the insurance paid and what you owed.
A smarter move is to put that $1k in a savings account and draw the $10 or difference in your monthly payments ($29k vs $30k) from that account.
In order not to lose at the credit game you have to understand it. Most people have no clue and are like the guy that walks up to the Blackjack table without knowing the rules.
In credit as in gambling, the house always wins, but you have a fighting chance of not losing too badly if you understand the game.
11-30-2012, 02:41 PM
#75
David_Dude
11-30-2012, 08:40 PM
#76
Was it a Honda/Acura lease? I really doubt you did it with a HFS/AFS lease. At this point you're trying to save face. We dealt with this on a daily basis for people....Honda/Acura doesn't negotiate. End of story regardless of whatever fantasy land you're from.
And you have no idea what Honda does with leases. I do. They purchase insurance to cover any loss at the lease end term when its originated for every lease they do. Honda doesn't lose....period. That is why they take the cars and don't negotiate. They get paid from the insurance company. You think they'll sell some haggler like yourself the car for under the purchase buyout when they get full value from the insurance? LOLLOLOLOLOL!!!! So right there, knowing what I know...I know you're full of shit, ceb.
Go look up all this stuff its all on the internet. They don't give a rats ass who you are....you turn the car in or buy it out at the contract price. It's been like that for a long, long time now. Search this very site there's a few threads about it. I know it's hard for some people to grasp that a car salesman is actually telling the truth on this matter...but it is true. I deal in absolutes and truths. Continue to deal in fantasy.
You probably think the US dollar is real.
And you have no idea what Honda does with leases. I do. They purchase insurance to cover any loss at the lease end term when its originated for every lease they do. Honda doesn't lose....period. That is why they take the cars and don't negotiate. They get paid from the insurance company. You think they'll sell some haggler like yourself the car for under the purchase buyout when they get full value from the insurance? LOLLOLOLOLOL!!!! So right there, knowing what I know...I know you're full of shit, ceb.
Go look up all this stuff its all on the internet. They don't give a rats ass who you are....you turn the car in or buy it out at the contract price. It's been like that for a long, long time now. Search this very site there's a few threads about it. I know it's hard for some people to grasp that a car salesman is actually telling the truth on this matter...but it is true. I deal in absolutes and truths. Continue to deal in fantasy.
You probably think the US dollar is real.
12-05-2012, 09:14 AM
#77
Racer
$1k down is not going to change a lease payment by an appreciable amount - unless you consider a couple of Starbucks a month a lot.
You also didn't finish reading my sentence. Any money you put down on a lease is gone if you wreck it or sell it.
Let's look at that $30k car. You put $1k down so you owe $29k. A year down the road you wreck it. You have a $500 deductible and you have GAP insurance.
The car is a total loss and the insurance values it at $25k. They give you $24.5k and the GAP makes up the difference to the $26k that you owe.
That $1k you put down is gone, gone, gone.
If you had not put any money down then the GAP insurance would have paid the extra difference between what the insurance paid and what you owed.
A smarter move is to put that $1k in a savings account and draw the $10 or difference in your monthly payments ($29k vs $30k) from that account.
In order not to lose at the credit game you have to understand it. Most people have no clue and are like the guy that walks up to the Blackjack table without knowing the rules.
In credit as in gambling, the house always wins, but you have a fighting chance of not losing too badly if you understand the game.
You also didn't finish reading my sentence. Any money you put down on a lease is gone if you wreck it or sell it.
Let's look at that $30k car. You put $1k down so you owe $29k. A year down the road you wreck it. You have a $500 deductible and you have GAP insurance.
The car is a total loss and the insurance values it at $25k. They give you $24.5k and the GAP makes up the difference to the $26k that you owe.
That $1k you put down is gone, gone, gone.
If you had not put any money down then the GAP insurance would have paid the extra difference between what the insurance paid and what you owed.
A smarter move is to put that $1k in a savings account and draw the $10 or difference in your monthly payments ($29k vs $30k) from that account.
In order not to lose at the credit game you have to understand it. Most people have no clue and are like the guy that walks up to the Blackjack table without knowing the rules.
In credit as in gambling, the house always wins, but you have a fighting chance of not losing too badly if you understand the game.
The choice to lease or buy and then how to lease (in other words, continue leasing or lease to buyout the car) is based on personal economic factors as well as deals/promotions at the dealer. For me, $1,000 down was a good decision as it lowered my payments by $50 bucks per month which allowed me offset for a maintenance plan, tinted windows, clear bra, and some other things I wanted done to the car. If I bought, I wouldn't have added those things as I don't believe in $700 per month car payments.
It worked for me!
12-05-2012, 09:27 AM
#78
Defcon, i am surprised noone has stated the obvious, but have you considered using your guns to shoot your creditors and then receiving your car for free like that?
12-05-2012, 09:50 AM
#79
Actually for me it saved me $50 bucks a month which is more than two star bucks runs a month. And I don't think most folks totally their car while leasing so that scenario is worst case. In my case, my $1,000 down is not lost assuming I won't total the car. If the car is totaled, I'm losing more than just my down payment.
The choice to lease or buy and then how to lease (in other words, continue leasing or lease to buyout the car) is based on personal economic factors as well as deals/promotions at the dealer. For me, $1,000 down was a good decision as it lowered my payments by $50 bucks per month which allowed me offset for a maintenance plan, tinted windows, clear bra, and some other things I wanted done to the car. If I bought, I wouldn't have added those things as I don't believe in $700 per month car payments.
It worked for me!
The choice to lease or buy and then how to lease (in other words, continue leasing or lease to buyout the car) is based on personal economic factors as well as deals/promotions at the dealer. For me, $1,000 down was a good decision as it lowered my payments by $50 bucks per month which allowed me offset for a maintenance plan, tinted windows, clear bra, and some other things I wanted done to the car. If I bought, I wouldn't have added those things as I don't believe in $700 per month car payments.
It worked for me!
12-05-2012, 10:32 AM
#80
Racer
I didn't mean that the added options offset the reduction in payment entirely but it offset some of the mods. And we can easily say the $1,000 down helped pay for the mods done by the dealership instead of strictly saying it went towards the monthly payment. However you want to apply it. There were several tiers of monthly payments and I chose the one in the middle which was around $40 decrease in payments. Sorry I rounded. I would rather pay a little less per month. And I was planning on paying >$1,000 to get my old car repaired so I let it go and put the money down on the new car.