Do one pay leases still require credit check

[bxd20]

Hello.

Have leased a few times myself and always had a great experience. Best deal was a Cruze for $37 a month / nothing down back in 2013.

I’d like to give back a little and help a friend who is in genuine need. His engine blew and he needs to get to work. His credit isn’t very good. I’m willing to chip in significantly to get him basic transportation.

I don’t want to have the lease in my name though for liability reasons.

So my question is: if we go with a one-pay, are we guaranteed to get advertised lowest payment? Or will they still run his credit?

If they’re still going to run his credit, maybe I could put the lease in my name; one pay it; then transfer it to him the next day? Any minimum hold periods before transfers are allowed?

Still looking at cheap used cars too, so far everything around $5000 has been a disaster.

Thanks!!

[Jon]

@bxd20

If they’re still going to run his credit, maybe I could put the lease in my name; one pay it; then transfer it to him the next day?

Yes, a credit check is still required. If your friend can’t get approved for a lease initially, then he probably won’t get approved for a transfer either.

[mllcb42]

Your only option to help here is to co-sign.

With that said, friends dont let friends cosign their financial obligations.

[Kctham18]

To add to the points above, transfer requirements may be more stringent - after all, why should the leasing company take a less-creditworthy applicant when they already have a good one on hand?

@bxd20

minimum hold periods before transfers are allowed

Yes, depending on the lessor’s policies

@mllcb42

friends dont let friends cosign their financial obligations.

@bxd20

if we go with a one-pay, are we guaranteed to get advertised lowest payment?

No, you still need to come in with the best deal for yourself. One-pay is just a form of payment so to speak (you get MF benefits, but still need to work on the deal itself).

[mllcb42]

@bxd20

are we guaranteed to get advertised lowest payment?

Why would you want the lowest advertised deal? Advertised deals suck.

[derekoh1991]

Just do 1-Pay and have your friend pay for it and yes, the credit check is required.

[mllcb42]

Doing a one pay in his name to just give to the friend to drive would be a straw purchase.

People do it all the time, but it’s still bank fraud.

[derekoh1991]

It is a straw purchase, oops. Forgot about that.

[bxd20]

So if I do a one pay lease; then transfer it to his name, that is illegal? Never would have thought that.

If that’s illegal, why would they allow a lease transfer to go through, that’s been fully paid? They know I paid it off.

I’m not doing a co sign for obvious reasons.

Thanks guys. Guess I’ll continue hunting the used car lots.

[mllcb42]

Transferring it is perfectly fine.

Keeping it in your name and just letting him use it isn’t.

The problem is that with poor credit, even on a paid off one pay, they’re unlikely to approve the transfer. The creditworthiness is being used to judge not just if you’ll pay the lease payments, but if you’ll return the car at the end.

It’s important to remember that in a lease, you’re basically financing it with a pre-arranged buy back amount. With a one pay, you may have paid off the depreciation amount, but you still basically have an active “loan” for the residual value amount until you return their asset.

[max_g]

@bxd20

I’m not doing a co sign for obvious reasons.

These obvious reasons are also why a bank won’t approve a transfer. The lower the credit score, the lower the likelihood that he’ll pay any lease-end charges for miles, excess wear, tires, etc.