Anonymous
Anonymous asked in Cars & TransportationBuying & Selling · 11 months ago

Will I get approved to finance or lease a car?

I really could use a new(new to me) car because my work required a lot of driving. I don’t want to waste my own, or a dealers time so I figured I’d ask on here. I’m 24 and a recent graduate. While in school, I lost my full time job and got in to some debt and credit trouble while trying to pay rent, pay tuition and pay for food and things I needed to get through the school year. But things are going well now and I’ve had a great job for a while now and can afford to save a decent down payment and make monthly payments for a car. Starting a few months ago, I started making around $5500 a month as a self employed contractor with very stable work and can show pay stubs for the last few months if needed. My credit is around a 570-580 last time I saw. My rent is $700. And I have a POS Hyundai Santa Fe I can trade in for probably around $1500 trade in value. If I lease, it would have to be high mileage. What king of price range of a car (if any) would I get approved for and how much monthly would I expect to pay? Also how much of a down payment should be necessary for me to save? I’m open to all options so please help:)

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  • 11 months ago

    If you can show paystubs you are NOT a self employed contractor.

    If you are a contractor they are payments, not paystubs

    And you will likely need to show tax returns not payments to get a loan.

    If taxes aren't being withheld are you saving 40% of your income for taxes?

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  • Anonymous
    11 months ago

    Lease with a 580. LOL

    Sure, kid.

    You can't lease and any financing would only be on rip off terms.

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  • 11 months ago

    Ok, there are several points here.

    One, forget leasing. Even if you got approved, leasing is the utterly cash stupidest way to get a car. The only people for whom leasing is non stupid are people who get to deduct the costs of their vehicle as business expenses.

    Next, skip new cars. With your income and it's short duration, you'd pay a lot in interest if you went that way. Go for a good used car, and get it thoroughly checked out by a good mechanic before buying.

    You fail to specify the age and mileage of your current car. If it still works reasonably well, then keeping it until you have more cash to put down on a newer car would be the wisest choice.

    • clinton11 months agoReport

      My car is 15 years old and has about 200k miles on it. It’s burning oil but it seems to be riding strong for now, but it’s had a rough past. It might not be worth it’s next major fix

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  • g
    Lv 7
    11 months ago

    With a credit score below 600 it is very doubtful you will quality for a lease or financing. To qualify for either you need both a strong income AND a better than average credit score.

    And forget leasing all together, you rack up too many miles annually for this to be a viable option for you.

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  • 11 months ago

    Forget leasing. Leasing is designed for people who only drive a "normal" amount of miles. That's not you. Furthermore, your credit sucks. You won't get approved for a lease, and will likely have major problems with a loan, unless you can make a large down payment.

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  • 11 months ago

    Whether you can get approved is only half the question you need to ask - they will approve a lot of people (especially for leases) who have no business getting themselves into that kind of situation.

    Other answers warning you about mileage limits on leases are good advice - most vehicle leases will stick it to you at the end if you are over miles, as well as any damage (no matter how minor) or other wear and tear.

    Keep driving what you've got, save up money for a downpayment (or to buy the car outright). You will be able to talk a better deal, and not get yourself stuck with massive debt or a crappy lease.

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  • Ian K
    Lv 7
    11 months ago

    Look at how much you drive. Look at lease penalties for going over mileage...

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  • 11 months ago

    Let's set leasing aside... you won't be leasing anything with that credit score.

    Ride the Hyundai out for another year. Set aside $1000 a month, at the end of the year you'll have $12K. Go buy a decent used vehicle for that. Pay all of your bills on time for the next year (realizing that adding more to your debt-to-income ratio by taking on a vehicle loan) and patiently watch your credit score rise.

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  • bo
    Lv 7
    11 months ago

    read the contract carefully if you do get financed which I doubt you will. because after a certain amount of miles you will get charged per mile. best bet find a car to buy forget leasing

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  • 11 months ago

    don't trade in the car. Sell the car on your own. Fix it up the best ya can and sell it for atleast what ya paid for it.

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