Simple question: My parents are retired and their only income is from Social Security. They have good credit history (800+). Can they still qualify for lease by themselves or will they need me to co-sign it? Thanks
If their credit score is good and underwriting metrics are sufficient (such as debt-to-income and possibly free-cash-flow), they should be able to get a lease without a co-signer.
If the have reasonable income and a reasonable DTI but get denied because of their age, that’s a clear CFPB violation.
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A one pay lease may be a good option for them as well if they have the cash available. It’s a very low risk to a lender. I’ve done a couple of one pays in the past and the dealer told me it was basically a formality to fill out the credit app. I had also had previous accounts with Lexus Financial, that may have helped as well. (It was with Lexus that I did a couple of one pay leases)
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Thanks, their mortgage is paid off, however not sure if they can clear the underwriting with their social security income.
@valek.jw thanks, One pay should be a good alternative.
They’ll typically get a break on the MF (interest) on a one pay. What state are they in?
PA
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On a credit application, a lender cannot discriminate by age or your source of income (unless it’s questionable or illegal - gambling, cash heavy self-employed, etc).
Only creditworthiness, income, and all the usual underwriting parameters.
Reason I asked is because in TX there are possible sales tax benefits to a one pay. I’m in TX…hence the question. I don’t know PA’s lease tax structure.
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It’s on the monthly, and there’s a 3% supplemental lease tax over the base rate. It ranges from 9% - 11%, including the 3%.