kmm

Look at your lease contract and you will see a 10 day right of rescission clause. Your dealer never exercised it because there were not any issues getting your paper bought by the bank. If a car buyer or lessee cannot get bought, the dealer unwinds the deal, returns all monies and the trade, takes the new car back and sells it as a used car.

Atomic350F

Sounds to me like they gave you the tier 1+ mf of .00090 by mistake if you are a 710 fico score. Tier 1+ is for credit score 720 or above. I would perhaps try the other credit bureaus to see if you have higher scores that could bring you into tier 1+ range, although I would imagine any finance mgr that knows his stuff tried this already. It sounds like now they are simply trying to get you to come up with cash to get you into that rate/payment..

Then again, if they knew their stuff they should have seen you didnt qualify for that rate in the first place!?

Some "favor" they are doing for you there, having you cover for their mistake... Anyhow, if you want to keep the car seems like your going to have to pay the msd's, which really isnt a bad thing.. you got a smokin deal on the car anyways!!

Laostuh

hahaha yeah but they offered to lower my MF to .00032 after I pay the 3 MSD. Payment would've lowered to $452... But doesnt matter I had my Sales Manager call his buddy and ask for a favor to get the deal done without the MSD.. Long story short. Im keeping the car with no MSD to pay but I do owe my 1st payment which Im making tonight. If they try to make me pay the MSD Ill simply unwind the vehicle. I want the car but I dont need the car

SW17LS

So you drove away in the car without making your first payment? That too is very odd. First payment has always been due on signing on EVERY car I've ever leased, except the GS because the first payment was waived.

PirelliRC

The dealer paid my first payment as well, i just signed and took the car without a penny out of my pocket. I only owe 23 months of payments. My credit score is 815.

However, your credit score doesnt mean squat if you dont have a good and extensive history. When i was younger and only had 1 credit card, by using the card a lot and not missing a payment my FICO score was 720 but i couldn't even get a lease because i had no history or anything paid off. Also your income to debt ratio is VERY important. Credit score is not that important. I know guys with a 610 score that got financed for a $700,000 house. Its all about your credit history not your score.

Laostuh

They probably used a portion of whatever rebate that was available at the time to make the 1st payment. But my original deal was absolute 0 down $506 including tax. I put $2000 down to bring it down to about $442 and I added a maintenance contract so it went back to $482.

I also leased my 2013 Nissan Maxima with absolute $0 down. But I guess being a Salesman for Nissan might have had something to do with it lol..

rominl

iTrader: (4)

not too odd. during december to remember lexus had this rebate to the dealerships which was about 1800 i think a lot of people use that towards the first month payment or so

my guess is they might be playing with the number games here to make up some of the difference

SW17LS

I work in the real estate business, so I have clients that get approved and denied for credit every day. The statement "credit score is not that important" is absolutely wrong. Its not the only criteria, but it is VERY important.

1. You are correct that for a car lease credit score is important, but what is more important is your prior car and mortgage credit. Leases are much higher risk than a finance because there is no equity build. They want to see prior car credit or/and a mortgage before they will approve a lease typically, even with very good credit. If you have a 650 and a rich car credit history, you're probably fine. Generally unless you have poor credit they never ask for proof of income. I have never been asked to document income when leasing or buying a car. Never one time. Debt to income is less important because they don't verify the income.

2. For the mortgage, its totally different. Your debt to income is of extreme importance, but so is credit score. The type of mortgage and downpayment has a huge impact too. If your friend has a 610 score and got financed for a $700,000 house, I can tell you with 100% certainty that was not a conventional/conforming/conforming jumbo mortgage. If it was less than 20% down you would have MI companies to deal with and they would never insure a mortgage from a borrower with a score that low. The price of the house doesn't really matter outside of conforming loan limits, and conforming jumbo loan limits that depend on your area. So, for instance it doesn't really requite better credit to get a $650,000 loan than it does to get a $150,000 loan. It just requires more income. Is it easier to get a 80% loan on a 600,000 house or a 50% loan on a $600,000 house? The answer is its exactly the same...only difference is less income is required to qualify for the 50% loan.

Now, he could presumably have gotten an FHA or a VA mortgage. Much lower credit standards, but even then MOST lenders won't lend below a 640, and VERY FEW lenders will lend below a 620, and almost none will lend below a 600...even though HUD and the VA technically allow it.

Unless its a VA or FHA mortgage, its some sort of a hard money or portfolio loan and he's paying a huge rate.

With that said, I have seen many people with 800+ scores and millions of dollars in assets be turned down for a $250,000 mortgage because they have no earned income with which to qualify. Its an interesting market out there. Those people for instance would have no problems getting car loans/leases.

All in all though, your credit score is the single most important piece of the puzzle when you're trying to apply for credit, whatever that credit is.

gemigniani

What about self employed buyers? Do the banks, credit unions and LFS want to verify income via 2 year's tax returns, etc. to approve a Lexus loan or lease application even if the applicant has a high credit score and long mortgage & credit card history?

sick21

Nope. Through about 20 vehicles financed in 4 years, we have only had income verification once.

jjscsix

I have seen payoffs that are the remaining payments less interest. But there is no guaranty as to how it's calculated.

SW17LS

I'm self employed. Nobody has ever asked me to verify income, ever.

OneOfOne

nothing personal but especially since the meltdown in 2008 neither of your credit scores are very good. when I leased my IS 350 my fico was 740 and the dealer said I needed 744 or higher for tier one. they gave it to me anyway. right after the meltdown there were plenty of stories where you needed at LEAST 720 to get mortages or loans with better rates. fortunately its not been a problem for me but they really want to see higher scores. Im over 800 now so I am not worried at all but if people think the credit score is meaningless they are in for a rude awakening.

sick21

Hmm idk about that. I'm tier one with my Lexus lease. I have a mortgage and I just bought my wife a new car with 0% for 60 months. I'm only 22 so I can't imagine loans being that hard to obtain. They're being thrown my way.

SW17LS

Its not that credit isn't available at lower scores, it is, but the most favorable rates are not. Lenders be they mortgage lenders or auto lenders or whatever keep nudging the requirements for their top tiers higher. For LFS Tier 1+ used to be 720, now apparently its 744? For a mortgage with a lot of lenders there are rate adjusters at 820, 800, 780, 750, 720, so on and so forth. Used to be if you had a 700 you had the best mortgage rates, now to get them you need an 820, which is a VERY rare score.

Often the rate adjustments are very subtle.