Help Please: Lease/Financing Question on a CLS550
04-07-2014, 10:20 PM
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Help Please: Lease/Financing Question on a CLS550
I have poor credit (620 TransUnion) from poor financial decisions that I made when I was a teenager. (Not understanding finance... at all). I'm currently working on improving my credit through disputes, and new trade lines and all of that good stuff.
Points:
- I'm a business owner and my income is, well.. high.
- I want to purchase or lease a CLS550 as my first "Nice" car, as a reward for myself.
-I've never had a vehicle loan before. My current car was purchased in cash years ago.
- I don't want to tie up the entire cost of the vehicle in cash (buy it outright), simply because I PREFER to have the capital working for me and keep it invested. I would prefer finding a way to only put up 20 or 30 grand.
Questions:
1) Do you believe I would be able to get approved for financing if I put down 20 or 30k for a purchase of a 2012 CLS550? -- (Is the financing typically done through Mercedes themselves, or a bank?)
2) Do you believe I would be able to get approved for a lease if I just paid the entire lease up, up front. Whether it's 20 or 30+ grand.
Again... my issue is basically my credit. I can purchase the vehicle outright, but I want to avoid doing that. Would it be possible for me to get approved? Any of your own experiences?
Lastly....
Have any of you ever leased a car and found that 12k miles/year, or 15 wasn't enough?
Without using precise numbers, and assuming each month has 30 days... @ 12k it averages to 1k miles/month, or 33.33 Miles per day. Doesn't really seem like you can really even drive these cars. @ 15k = 41.66 miles/day.
I know it would all depend on my own average usage, but I've never monitored the amount of miles I've driven.
Anyways, thanks for anyone that can help me out here.
Points:
- I'm a business owner and my income is, well.. high.
- I want to purchase or lease a CLS550 as my first "Nice" car, as a reward for myself.
-I've never had a vehicle loan before. My current car was purchased in cash years ago.
- I don't want to tie up the entire cost of the vehicle in cash (buy it outright), simply because I PREFER to have the capital working for me and keep it invested. I would prefer finding a way to only put up 20 or 30 grand.
Questions:
1) Do you believe I would be able to get approved for financing if I put down 20 or 30k for a purchase of a 2012 CLS550? -- (Is the financing typically done through Mercedes themselves, or a bank?)
2) Do you believe I would be able to get approved for a lease if I just paid the entire lease up, up front. Whether it's 20 or 30+ grand.
Again... my issue is basically my credit. I can purchase the vehicle outright, but I want to avoid doing that. Would it be possible for me to get approved? Any of your own experiences?
Lastly....
Have any of you ever leased a car and found that 12k miles/year, or 15 wasn't enough?
Without using precise numbers, and assuming each month has 30 days... @ 12k it averages to 1k miles/month, or 33.33 Miles per day. Doesn't really seem like you can really even drive these cars. @ 15k = 41.66 miles/day.
I know it would all depend on my own average usage, but I've never monitored the amount of miles I've driven.
Anyways, thanks for anyone that can help me out here.
04-07-2014, 11:11 PM
#2
With 20 or 30 at front I am sure you can, did you contact the dealer? you will be surprise how many wealth people have a poor credit due to some financial movements.
Contact a dealer sales guy, be honest, talk with the financial manager, explain the situation, they deal with this every day... he may said yes or no, nothing to loose.
Contact a dealer sales guy, be honest, talk with the financial manager, explain the situation, they deal with this every day... he may said yes or no, nothing to loose.
04-08-2014, 12:16 AM
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1) Your best bet would be a local credit union in this case. Get an idea of what the interest rate is going to be like for the amount you will be taking out with your credit score. Interest rates are still relatively low nowadays.
2) You will not be able to lease a used (2012) vehicle - unless you were talking about a 2014 instead. At a lower credit tier (any credit score lower than a 680-720 essentially) you will most likely be stuck with a higher money factor (AKA lease/interest rate). I don't think paying the entire lease sum upfront would really benefit you in terms of lowering the MF. Instead, ask the finance manager about Multiple Security Deposits (MSD for short), which is a refundable deposit that helps lower the MF (to a certain limit). And unlike the standard cap cost reduction (lease jargon for a "down payment"), should anything catastrophic happens to your vehicle (totaled, stolen, etc.) you will get that deposit back.
With your current financial situation and if you don't absolutely need a new vehicle now, you are probably better off waiting another 6-8 months or so for your credit to go back up a little. Your business and other assets should help accelerate the process. Conversely, if you start filing applications for loans or leases now your score will most likely dip even further (in the short term anyways).
Just my 2 cents....
2) You will not be able to lease a used (2012) vehicle - unless you were talking about a 2014 instead. At a lower credit tier (any credit score lower than a 680-720 essentially) you will most likely be stuck with a higher money factor (AKA lease/interest rate). I don't think paying the entire lease sum upfront would really benefit you in terms of lowering the MF. Instead, ask the finance manager about Multiple Security Deposits (MSD for short), which is a refundable deposit that helps lower the MF (to a certain limit). And unlike the standard cap cost reduction (lease jargon for a "down payment"), should anything catastrophic happens to your vehicle (totaled, stolen, etc.) you will get that deposit back.
With your current financial situation and if you don't absolutely need a new vehicle now, you are probably better off waiting another 6-8 months or so for your credit to go back up a little. Your business and other assets should help accelerate the process. Conversely, if you start filing applications for loans or leases now your score will most likely dip even further (in the short term anyways).
Just my 2 cents....
04-30-2014, 02:25 PM
#4
Super Member
Dealer allows MSD route if the car doesn't have lease special going on (ie standard Money Factor)
On cars with "Special Offers" program where the discounted money factor between Tier I & II are close, work with your dealer and they can bump you to Tier II with the right combination of proof of income and money down because 6xx credit score puts you right into Tier III.
On cars with "Special Offers" program where the discounted money factor between Tier I & II are close, work with your dealer and they can bump you to Tier II with the right combination of proof of income and money down because 6xx credit score puts you right into Tier III.
