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Posted in Auto Loans
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Vet5208

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If I lease a new car,instead of buying,will it affect my credit score?

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Ford Sales Rep

Helpful to 58 out of 61 people

Leasing and Financing the same car will have the same effect on your score as far as points a concerned. You may have fewer hard inquiries because the brand leasing company is generally the only company that looks at and approves the lease.

The biggest difference is how much debt will show on your report. If the vehicle costs $30,000, when you finance it, the whole $30,000 will show as debt which may affect approval or interest rates of other loans pending income. A lease would be pending the residual. If the same $30,000 vehicle had a residual of $18,000 after 36 mo, you will only be fiancing $12,000 so less debt will show. Also, since leases are generally shorter than finances, you could show more completed contracts which will boost your score immensley

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Was extremely helpful. Would need more clarity as to what happens at the end of the lease. I have heard horror stories about balloon payments being required if you chose to keep the vehicle.

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