Financing/Leasing with a bad credit

[rednoiz]

Hey all,

I have a few questions regarding financing/leasing a vehicle with a bad credit. Yes I do have a bad credit because I was stupid when I was younger, but I am slowly getting back on the track. I also have had a 2007 Acura TL-S financed fine for about 1670 per month, but this, I needed my father to cosign the contract.

I am now married and I have been driving a cheap and old car for a while, and just got it sold. I had sell the car because it was too old and I had no idea or time to take care of it too much. This vehicle was offered to me from my friend's import shop under his in-house financing. This finance also has gone very well.

Last year when I was shopping for new vehicles, I have had some collection items under my credit profile which are now handled. So now, here I am looking for a new vehicle both for myself and my wife.

She's a novice driver so I need something new and stable. I do make quite good money from my job, and can afford to lease a vehicle for about 500~600 per month incl. tax.

Last weekend my wife and I had a chance to visit Hyundai and VW dealerships and test-drove 2011 Tucson, 2011 Sonata, and 2010 GTI.

I personally would like to get the 2011 Tucson, because of all the features it comes with and because it's a CUV. My wife loves the red GTI, but she also loves the white Tucson a lot.

Tucson's price was about 33k before tax where the GTI was about 34 or 35. However before I can even decide which vehicle to choose, I would like to know if it is even possible to get one due to my credit, and if it is, what it takes and what options I have. My wife does not have a good credit either and she's quite new to Canada, and this time, there's nobody to cosign the contract.

Does anyone know anything or can anyone help me through?

Thank you very much for your time.

[Great68]

I don't think Revscene people here can tell you with certainty how easily you will be able to get a loan or not. You really have to go to a bank and have this conversation with one of their lenders to know for sure.

If you CAN get a loan, you definately won't be getting any of the good rates. Be prepared to be spending thousands more in financing costs.

[roastpuff]

Get the 2011 Jetta, it's cheaper than the GTI and is similar in interior design and features.

[rednoiz]

Originally Posted by roastpuff

Get the 2011 Jetta, it's cheaper than the GTI and is similar in interior design and features.

Wish I could but I just cannot wait since we need a daily driver ASAP after our current car gone.

Thank you for all advices

[Rich Sandor]

First of all, to correctly answer the question, you would need to divulge some information which is highly personal - not something you want to do on an internet forum.

When you apply, the finance office will ask you the following questions:

1: what do you do for work? how long have you worked there, and how much do you earn, exactly.

2: what kind of credit problems have you had, specifically? collections for what? parking ticket? VISA? missed loan payment? how many days over? 30 days? 90 days? etc etc etc.

3: How much is the vehicle you are buying, vs how much money are you actually making?

4: PROOF OF EMPLOYMENT AND INCOME.

Most people with questionable credit fall apart when we ask for real, actual proof of income, such as a paystub or income tax return. For some reason people think 'their word' is good enough for the bank. no, it isn't.

Also, if you have only been at your new job for 3 months, don't expect to get approved with a good interest rate, even if you are earning really good money. At 3 months, you are still technically on probation and could be fired at will without notice or severance according to bc labor standards.

[Gh0stRider]

1670 per month...wow

[rednoiz]

Originally Posted by Rich Sandor

First of all, to correctly answer the question, you would need to divulge some information which is highly personal - not something you want to do on an internet forum.

When you apply, the finance office will ask you the following questions:

1: what do you do for work? how long have you worked there, and how much do you earn, exactly.

2: what kind of credit problems have you had, specifically? collections for what? parking ticket? VISA? missed loan payment? how many days over? 30 days? 90 days? etc etc etc.

3: How much is the vehicle you are buying, vs how much money are you actually making?

4: PROOF OF EMPLOYMENT AND INCOME.

Most people with questionable credit fall apart when we ask for real, actual proof of income, such as a paystub or income tax return. For some reason people think 'their word' is good enough for the bank. no, it isn't.

Also, if you have only been at your new job for 3 months, don't expect to get approved with a good interest rate, even if you are earning really good money. At 3 months, you are still technically on probation and could be fired at will without notice or severance according to bc labor standards.

Thanks for the detailed information. To answer some of the questions:

1. I am a senior software developer. I'd rather keep my salary confidential over the internet, as you've expected.

2. I've had credit problems with some of the bills. But as I said, I have a great history with Acura.

3. The vehicle I am looking for is about 38~40k after taxes and everything. Last year when I was shopping for vehicles for more money, the collection items were the only problems but it is handled now. I figured it may be a little easier at this point.

4. Easy. I have a collection of recent pay stubs. Also, I am not on probation anymore. Actually I've been on this job a little over 3 months.

Thanks again.

[rednoiz]

Originally Posted by Gh0stRider

1670 per month...wow

Yes, it has been crazy - but hey, I was able to manage it!

[Ranterok]

Go to mitsubishi, my mom got a 2010 lancer and a 2009 lancer for 40grand together and she has bad credit
Posted via RS Mobile

[fliptuner]

When's the last time you did an Equifax?

[Gh0stRider]

Originally Posted by Ranterok

Go to mitsubishi, my mom got a 2010 lancer and a 2009 lancer for 40grand together and she has bad credit
Posted via RS Mobile

is mitsu really that desperate to sell cars? damn.

[rednoiz]

Originally Posted by fliptuner

When's the last time you did an Equifax?

Eh... Been a while. I gotta do it again...

[rednoiz]

Originally Posted by Gh0stRider

is mitsu really that desperate to sell cars? damn.

Which Mitsubishi dealer was that?

[SuperAman]

what about those ones that say...
"No Credit Refused" "Bad Credit, NO Credit, Bankruptcy"
you are approved.

I see those advertisment all the time from places like
Eagle Ridge GM and such..

[Jgresch]

www.jpsuzuki.com

fill out a credit app. it sends to me.

I will tell you what your chances are.

edit: I'll add to this list too.

1: what do you do for work? how long have you worked there, and how much do you earn, exactly.(Need 2 years of employment history)

2: what kind of credit problems have you had, specifically? collections for what? parking ticket? VISA? missed loan payment? how many days over? 30 days? 90 days? etc etc etc.

3: How much is the vehicle you are buying, vs how much are your current monthly payments on everything else? You will not be considered for a loan if you break 40% debt services ratio. I.e You make $1000 a month, you total monthly payments can be no more than $400

4: PROOF OF EMPLOYMENT AND INCOME.<- Not always but in some cases.

5:Can you put any money down?

6: Get your wife on there anyways, it won't hurt her as long as you make the payments. You said her credit isn't great either, well now is her chance to boost it.

7. Don't fill out a ton of credit apps, every inquiry dings your credit score.

[rednoiz]

Thanks for all replies guys The dealer says they're confident that they can get me a loan. I am very excited! Clearing all the debts actually helped a LOT!

[rednoiz]

Originally Posted by Jgresch

www.jpsuzuki.com

fill out a credit app. it sends to me.

I will tell you what your chances are.

edit: I'll add to this list too.



5:Can you put any money down?

6: Get your wife on there anyways, it won't hurt her as long as you make the payments. You said her credit isn't great either, well now is her chance to boost it.

7. Don't fill out a ton of credit apps, every inquiry dings your credit score.

Hey, thanks! I can put some money down but not too much. My dealer is currently confident to get me a loan with no down payment. And yes, putting my wife under the file sounds like a GREAT idea!

Thanks for great advices!

[Jgresch]

Is it a mainstream dealer? or like a used car lot that says "anyone approved" etc etc.

Glad to hear the good news, hope your interest rate isn't to deadly.

[rednoiz]

Originally Posted by Jgresch

Is it a mainstream dealer? or like a used car lot that says "anyone approved" etc etc.

Glad to hear the good news, hope your interest rate isn't to deadly.

Openroad Hyundai, Richmond

[rednoiz]

Originally Posted by SuperAman

what about those ones that say...
"No Credit Refused" "Bad Credit, NO Credit, Bankruptcy"
you are approved.

I see those advertisment all the time from places like
Eagle Ridge GM and such..

I would not trust any of these places Sounds too sketchy.

[Chuck Norris]

I own a mortgage, leasing company. You can feel free to PM me and I will give you the name of one of my staff to help you out if you're interested.

[optiblue]

Originally Posted by Gh0stRider

is mitsu really that desperate to sell cars? damn.

Yes they are! Out of my entire family including all my cousins, distant cousins, immediate family and friends, I was the first to buy a Mitsu and it shall be the last. I'd buy again if it were priced like the states, but in Canada, it's the worst markup you've ever seen.

$1670 / month is pretty crazy, but I'll assume that it's a 2-3 year finance right?

No one but the banks will be able to tell you how much you can borrow. Just go and pick a car that you like, walk in to the financing room of doom and they'll tell you yes or no in a couple of hours to a day. I highly suggest that your next car be 4x4 or awd for the added safety

[Jgresch]

The markup in mitsu is from the factory. In a Lancer GTS there is only $1200 Dealer markup... Its the brand that charges up the ass.