Application for a lease got declined, sales guy said credit is amazing but due to less vehicle credit history your application is being declined. We have leased owned 4-5 cars before. Never had history of late payments always paid everything in full.
We have never heard of this reason before, has someone come across the similar situation? Please let me know, thanks in advance.
I’m not suggesting that you post answers to all of these, just a few things to think about:
Would the new payment be higher than previous payments? If yes, is the difference significant?
Same lessor you’ve used before? Is this a manufacturer’s captive leasing company or a retail bank / CU?
Same applicant(s)?
Similar DTI?
Similar income as before?
Also, you can have no late payments but a terrible credit score (most common reason is a high proportion of credit card balances reporting relative to total credit card limits, even if the payments are comfortable / you pay in full every month).
Most people who lend money for banks and mortgage companies don’t understand at with any meaningful level of detail how credit scoring works, and the sales guy is probably an order of magnitude less informed than that.
He also has an incentive not to alienate you with unpleasant messaging.
I usually check my credit report every 4-6 months to make sure I am at very good/exceptional standing.
To answer some questions:
Can I directly reach out to lender regarding this?
This deal was done on call. I personally feel they might have received another offer on the same car which is better than what they agreed to sell it to me for. Because salesman kept telling me that there is another person interested in the same vehicle after we agreed on numbers and ran our credit app etc. I asked it directly but salesman denies it.
Much bigger? Who’s the lessor?
You’ll get an adverse action letter at some point (FCRA requirement if you are denied credit based on the contents of your credit file) with an explanation.
Don’t confuse this with a score disclosure you’ll also receive; that just lists the reasons your score is X and doesn’t describe if/how those factors were used in the decision on your lease application,
But I’d ask to speak directly to the finance person at the dealership. S/he knows why it was declined.
This is called “creating urgency,” and it’s a common sales tactic to push you into making an immediate commitment.
Thank you @trism for your inputs.
It’s AFS. I will talk to finance manager, and see what’s the issue. Never thought there were vehicle credit history matters and would affect leasing, apart from having an exceptional credit score.
Didn’t understand why this was done after a deal was agreed up on the phone and they took all the documents and ran my credit app. I understand that if they do it before we arrive to decision. Was supposed to pick up the car in few hours…
None of the above is consistent with being declined.
Someone is not telling the whole story for sure.
This sounds fishy. Maybe they sold the car you were looking at to someone else, or maybe the Sales Manager backed out of the deal.
Vehicle credit history definitely matters, we see lots of cases where folks may have a great score but have problems getting approved becasue they have a thin credit file with few to no previous auto lines.
But if you have 4 or 5 previous auto loans/leases then that really shouldn’t be an issue.
Also, typically if there are credit issues you’ll get some sort of follow up, i.e. we couldn’t you approved for X but we can do Y. The dealer wants to sell a car. For them to just say “sorry you weren’t approved” and try to move on is odd behavior.
Thank you all for chiming in, to clear questions I had.
Finance manager and GM spoke to AFS to get the application approved. Now very happy with how the dealership handled this salesperson did not give me all this info yesterday, picked up the car today. Apparently both total credit limit and auto history matters.
Congratulations on the car, glad they did a reconsideration.
what is AFS?
Audi Financial Services
Or Acura Financial Services. Acura/ Honda has weird criteria post covid where they have asked permanent residents to submit copy of residency card as well.
Glad it worked out for OP though. This also could seem like second applicant who was agreeing to a higher price got credit declined or backed out. (Unless ofcourse OP has direct proof of management speaking to AFS for approval.)
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