Financing of leases and credit

jgirl6jgirl6 Member Posts: 53
edited September 2014 in Volkswagen
When financials are run on a lease do they base it on the entire value of the vehicle say 32k or only on the value of the lease say 11k. For my brother they went through a credit union NEFCU and ran the credit check based on the 32k for the total vehicle value. It sounds more like balloon financing than a lease. Am I wrong? Not sure if banks and credit unions run credit differently then say VW credit.
As I understand it balloons are similar except you hold the title and have the option for a 1 time balloon payment (RV) , finance the balance (RV) or turn the vehicle in. Same options as a lease. Liability is different it appears but both are taking the same hit on your credit. Is that right? Done a lot of research and this is not clearly stated on anything I googled. No matter how many ways I input the question.


  • kyfdxkyfdx Moderator Posts: 208,901
    Running your credit for the value of the vehicle is normal, whether buying or leasing. If you are buying or leasing, the starting value of that vehicle is the same, and it's pretty much under your control for the length of the lease.

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  • jgirl6jgirl6 Member Posts: 53
    Thank you
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