Lease Payments in Advance

kajukid

Greetings:

I've got a FICO that's barely at 600. I'd like to lease a small SUV; given my credit score, though, I know that I'm a risk. In that respect, I'd like to prepay the first year of lease payments in addition to the down payment/cap cost reduction.

Is this something that is a viable option?

Thanks in advance.

Mr_Shiftright

UnLess I'm misinterpreting your motive for doing this, I would say it's not viable because the leasing institution will or will not grant you a lease based on whether you qualify initially, for the terms of the lease. I don't think your offer of pre-paying on lease payments would change their credit requirement. Besides, why would you want to give them the 12 month "float" on your money?

kajukid

Your interpretation is accurate. I'd offer them the 12 month advance payment to mollify the obvious concerns: namely that I would default on the lease payments. Ordinarily, I'd use that money as a down payment on a cheaper car. But over the next 36 months, I need a reliable vehicle that's under warranty AND I need to keep overall expenses a minimum. A lease would help in those goals.

Mr_Shiftright

Well, perhaps you'll get the lease "as is". It's not recommended to put a lot of money up front on a lease, regardless of where the money goes. It's not just your FICO that counts--it's also your credit to debt ratio at the moment. I think it will also depend on what kind of small SUV you try to lease. Kia might be more lenient than BMW for instance.

kajukid

Thanks. Kia is definitely on the short list.