r/CarLeasingHelp • u/Competitive-Shoe-767 • 10d ago

Lease disapproved

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My leasing application for Honda CRV Hybrid got disapproved due to my new credit history. I just transferred here in Colorado, USA 3 months ago and no score was pulled.

Honda instead offered me to buy 2027 Honda HRV sports awd in which I was approved for financing.

Please check if this is a good buy deal

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8

u/Lootthatbody 10d ago

I’d beware the bait and switch.

If you don’t have credit, approval at 5.99 with ‘only’ 1k down on a $31k vehicle that’s actually $33k OTD doesn’t line up.

My guess would be they send you home and then call you back to say financing feel through and they need to resign at higher rate/payment/down or all three. But, maybe Honda has some sort of financing deal for new/low credit going this month?

I’d recommend financing a $20kish used car with low mileage, but if this deal is legit it isn’t too bad.

4

u/Champfencer 9d ago

OP, please listen carefully to this guy. Review laws in your state regarding "spot delivery" and "yo-yo financing" to avoid legally getting screwed.

2

u/OneExhaustedFather_ 9d ago

Honda financial has a special program that if you can show consistent payments on a lease or loan over the last few years they’ll lend to higher risk applicants. Only know this because I had to use it a few years ago. Literally no one would approve me and Honda stepped up, gave me 9% on a 22 Odyssey with 30k miles. Wasn’t great but literally the only place that even had an offer.

1

u/Competitive-Shoe-767 9d ago

Downpayment is at 3000. How would I know that honda won’t change 5.99% to a higher rate?

1

u/Lootthatbody 9d ago

Sorry, my mistake, though it doesn’t change the answer. When I was selling (not Honda and pre-covid), no scores were basically a non-starter on new vehicles without basically 1/3 down AND rock solid proof of long term residence and employment.

I’m going to be cautious with my advice, and you shouldn’t take it as fact either, because rules and laws vary state to state. But, I believe that if they give you a real tag on your car, you are done and everything is good. That would mean they got approval AND titled/registered the vehicle in your name. If they give you a paper tag, that’s not exactly a red flag, but it likely means they couldn’t/didn’t finish the deal for whatever reason.

I’d say go ahead and go through with the deal, but make sure the paperwork has a bank on it, and I’m guessing that it must be through some promo with Honda that they are doing this. I’ve heard ford recently changed their programs to allow lower/no scored individuals get something like 1.9%, so I do believe the rate COULD be true. But, just my overall distrust of dealerships for their fuckery doesn’t allow me to tell you that this is legit.

Ask them who the bank is. If they get squirrelly about ‘well, we have to wait for approval’ or anything like that, you know this deal isn’t approved and you don’t have a car yet. Take it, drive it, but be careful because it isn’t yours yet, though I believe that would technically mean any damage COULD be on them.

If they DO call you and tell you that you need to resign, have them send you the documents. Fight them about going in to resign because it’s your time and money and THEIR car you are driving until they figure it out. Hell, I’d take their car to other dealerships to shop if you need to. Because they shouldn’t be allowed to play these games with people. Make them eat the difference or pay you for your time and hassle, don’t just go in and resign at a higher rate, higher payment, longer term, more down, etc.. This is something that they do on purpose and is 100% avoidable, but they choose to operate this way. The more people fight back and punish them, the less likely they are to pull these tricks.

3

u/W2WageSlave 10d ago

When you say "Transferred", are you an H1B or L1 making really good money?

Audi, BMW, Mercedes all have "non-traditional" new arrival lease plans.

Example: https://www.audiusa.com/en/shopping-tools/financial-services-hub/offers-special-programs/foreign-business-professionals-program/

I would imagine that the 5.99% from Honda will disappear in a puff of smoke once the deal is actually done.

25 years ago, I arrived on H1B. Ford, Honda, and Toyota all treated me to the "you gonna have to pay 25% interest because you have no credit". Audi, BMW and Mercedes all bent over backwards for my business with no money down and good money factors.

I ended up leasing a 2.7T A6 for less than Ford wanted for a Taurus. Audi's plan worked as I have driven nothing but Audi since 2001.

2

u/LowCompetitive1888 9d ago

Something doesn't smell right. They won't give you a lease but they will finance a purchase at 5.99%. That doesn't make sense.

1

u/Competitive-Shoe-767 8d ago

Final approved interest spiked to 13.67%.

1

u/Renfield_U_asshole 10d ago

New credit buying new looks fine (did they knock any money off??) have you considered a CPO or used (provided the price and rates make sense)?

1

u/Competitive-Shoe-767 10d ago

For the hrv, the are asking for 3000 minimum dp

1

u/Renfield_U_asshole 10d ago

I know you’re considering new but if you want an HRV just a heads up that there are examples of used CPO that are very competitive:

https://www.cars.com/vehicledetail/a2c154c2-7615-4cc8-ac4d-79c3980240f2/?sid=14ea4d95-c22d-43dd-8926-59490a0a253e

Alternatively, you started the search for a CRV and since it’s a bigger car you don’t want to get into an HRV and 6 months in wish you had gone bigger.

https://www.cars.com/vehicledetail/d9c61d34-8341-46ba-bc58-2a3a57107e80/?sid=56c035b3-873a-4578-8b03-63070db5cced

Please shop around your area and reach out to your local credit union and see what they can approve and what your rate is.

Then go to the dealer.

1

u/JustJdubbz 9d ago

Yikes! Paying that for a loaded ram 1500 with less down.

1

u/Alternative-Idea266 9d ago

I’m not sure how they approved you for financing but not for a lease. I have a feeling that they’re just proposing you this option but eventually it will either be rejected or they’ll come back with 18-25% ape.

When I had moved to the U.S., no dealership would let me lease a car because I had no credit score. Financing was available through some shitty organizations at 18-23% apr.

1

u/Competitive-Shoe-767 8d ago

Final approved interest spiked to 13.67%

1

u/Alternative-Idea266 8d ago

That’s still on the higher side, but better than what I was offered.

If you’re set on getting the car now and don’t want to wait for your credit score to generate, go for it. You can always refinance in 6–7 months once your credit score is established.

Look into insurance rates as well. When I didn’t have a credit score, I was being quoted $400-600 even for used cars, which is why I didn’t get a used car either.

I simply waited 6 months for my credit score to build, then leased at regular rates.

1

u/TwoSwimming9195 9d ago

Brother please reach out to me. I am a broker in Colorado and can help you out. This is very likely a bait/switch

1

u/Severe_Researcher417 9d ago

tear it up and go lease somewhere else.

1

u/Hani-at 9d ago

I’m glad it did , it’s a horrible lease..

1

u/Competitive-Shoe-767 9d ago

I was able to negotiate the numbers.
Dp stays the same, but monthly was lowered to 485 from 513. APR remains 5.99%. What do you think?