How do you qualify for loyalty if this is your first car in 20 years?
It would probably be a better idea to simply ask the dealer for the MSRP for the specific car you’re negotiating.
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If your credit is that bad, Honda Finance might(probably) not even approve you for a lease. While most of the folks are suggesting that this is a bad deal, they are correct for folks who would have a better credit, high interest rate is the price you pay for having bad credit.
You should pull your report and see exactly where you are, once you know your credit score, then you’ll know if you have any leverage to negotiate or not.
If your credit is as bad as you think it is, then this deal that you are getting might not be as outrageous as some of the leasehackers (myself included) think it is.
Best of luck with the situation.
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You do realize that this isn’t permanent, right?
Auto theft is why the good lord gave us auto insurance, which you are required to carry as a condition of your lease.
If your deductible is $500, at $50/month for Lojack you’d have to have your car stolen and recovered every 10 months just to break even.
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MSRP can’t be lower than the selling price. Is the car on the dealer’s lot?
These numbers still don’t up that to nearly $5k. Btw, you can roll in the taxes into the payment.
I would suggest reading leasing 101 before continuing any further negotiations.
@leasersimpson - Can you answer this?
This is grand larceny.
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Tell that to Kia dealers selling tellurides.
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If you absolutely need a new car right now, have you considered letting your wife be the primary lessee if she has a higher credit score than yours? If that is not an option, I will wait till your credit improves.
Any reason it is so low? High credit utilization, DTI (Debt to Income)?
You don’t get to 550 credit score by just utilization and debt to income ratios.
I am speculating here, This is a mixture of late payments, defaults and collections.
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Thanks. I noticed that I can get my FICO score for free as a holder of a Bank of America credit card using their mobile app. My FICO is 559.
Another point you and others here have raised is whether we would even get approved - unless I’m misunderstanding the situation, and that’s perfectly possible given that I am a mega novice to this, we already are approved. Yesterday, the Paragon folks were on me to sign off on the deal I described in the first post and were duly deflated that I wanted a few more days to think about it.
The sequence of events was: A couple of phone calls with a sales guy from Paragon resulting in filling out their credit application.
Then he worked with the insurance broker with whom Paragon associates to get me a policy quote. For the lease deal itself, he said they would only be able to give me the exact numbers once I set up the insurance policy, which is a necessary preliminary to have for the final step.
I said ‘what if I don’t like the deal you guys offer once we’ve done the insurance step and I don’t want to move forward? Would I already be on the hook for the insurance?’. No, I was told; if we don’t do the deal the insurance can just be cancelled.
So yesterday I worked with the insurance broker on the policy for an hour and then was passed on to the next guy in the chain at Paragon, who presented me with the deal I described upthread (he recommended the maintenance, tire and scotch gard add-ons, which I am now leaning toward deleting). I said now that the exact deal is visible to me, I needed til monday to think about it, he was duly crestfallen.
At this stage, no money has changed hands, but i have given the insurance broker my bank account & routing as part of that process. Have not given any payment details to Paragon.
Sorry for length…!
Without getting into TMI, that’s mostly it. Too many credit cards constantly running near their limits, late payments. Got a raise about a year ago which has enabled us to stop relying on CCs and just focus on paying them down. And made it possible for the first time for us to contemplate leasing.
Yes you need insurance but not for them to give you a lease quote. Hate to be so blunt but if you keep taking the dealers word for things you are going to be taken for a ride.
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Hate to add to this… but they are already taking OP for a ride with thousands of $$$ in dealer adds…
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Progressive, Gieco, esurance, liberty mutual, and A ton of other insurance places will give you a online quote.
Please make sure you get a quote from a decent reputable place. You don’t have to get your insurance from the dealership recommended. I imagine you would probably find better options.
If they’ve approved you chances are someone else will approve you as well. However, due to the aforementioned reasons you will not get the best Possible deals as that is the price of credit.
That being said, you should get a breakdown of everything what is the MSRP, what trim, what discount etc and such, and most importantly what kind of MF/interest rate you got approved for.
I’d just walk away altogether. You’re not going to be able to get anything remotely decent with that credit score. Paragon Honda is a HUGE red flag too. You’re not going to be able to delete those dealer adds either, at least not until after the fact and hope for a prorated refund. I’m sure that they are a major condition of the finance manager being able to secure approval, in addition to what appears to be dealer markup as well. Just walk away and work on getting your credit situation resolved before attempting something like this.
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Okay, full disclosure. I’ve only purchased a car twice in my life and have never leased a car… But what you wrote above sounds very fishy and would be a huge red flag to me, in the sense that I would be worried about the dealer BS’ing me all over the place.
I will defer to our more experienced hackers to comment.
This is a crock. Find a new dealer.
Why would you pay to insure something that you haven’t even got a price on yet? Just conveniently through his guy too.
What he really said is “I won’t tell you how incredibly expensive this is going to be until after you have sunk money into my buddy’s business so I you feel trapped and don’t have a choice but to take my ridiculous offer.”
RUN
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I kind of want to disagree, look if you want to get this car, message me. I do Honda in PA. We can dump the adds, and do a better discount, but financing might be more prudent than leasing with your credit, we can look into that.
Oh for f$&ks sake, no, if you keep eating this up, you’re going to loose more money and keep digging a hole.
I know the Hudson is nasty, but you’ll be buying finance a new boat.
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I kind of want to disagree, look if you want to get this car, message me. I do Honda in PA. We can dump the adds, and do a better discount, but financing might be more prudent than leasing with your credit, we can look into that.
Oh for f$&ks sake, no, if you keep eating this up, you’re going to loose more money and keep digging a hole.
This probably is your best option, a broker will charge you $300-$500 for getting a lease done, but rest assured most of the folks here are pretty straight shooters, research them, read their reviews, this small investment will get you peace of mind and for the most part a very good deal, for which you won’t have to do any legwork your self.
You have already made a very good decision to research before pulling the trigger, which has landed you here in this community. Now go the distance and hire someone, explain everything to them (your credit situation, your timeline, any other constraints), and have them work for you.