My fiancee has a car that he did a 2 year lease on. He is about to be over his miles before the car is due to be turned in (August). He has little credit (the kind that required a co signer in the first place). Being since we are getting married, his dad has refused to re cosign for him to either get another car or to buy out the car. He contacted the creditor (also the car manufacturer) who had little hope for him. We tried the in house financing places but they said that without sufficient down payment they could not assist him and that they cannot handle the leased vehicle. I have no credit and I cannot help him co sign. How can I get credit quickly? I have a cell phone in my name, had one credit card (paid on time, paid it off), etc. We are desperate for a solution. He tried getting a loan through his bank to pay it off and they declined it. Can we just sell it for the pay off amount on CL or to an individual?
Couple things here.
1. If you have no credit, or poor credit, you cannot get a loan. Period. Banks today are not handing out car loans like they used to, so you need credit established.
2. There is no way to get credit ":quickly":. A credit history takes time. Years.
3. When the lease is due, he will need to pay the overmileage fee, the disposition fee, and any damage to the car. The deposit made when he signed the lease will offset some of these charges, but he will need cash when he turns in the car.
4. Sounds like you guys are looking at getting a cheap beater to get around in for the next couple years. Pretty much the same deal as every other young couple. In time you’ll be able to buy a new car, but do what you gotta do now. It’s just a car, find something decent, pay with cash, and drive on.
Co signing is never an option unless it is a blood relative and even then the relationship maybe strained over it. What happens? A missed payment suddenly has to be made by the co-signer immediately. That not being able to do on such short notice (because the person who missed the payment failed to notify the co-signer, typical.) the owner of the car note doesn’t care because he can reposes the car and sell it to cover the loan balance often less than the value of the car (good luck on getting the excess funds, which will be loaded up with excessive charges anyway) They will do their damnedest to stick the co-signer for a bill for the alleged ":short fall": and ding the co-signer’s credit when he doest act post haste (basically legalized extortion, its in the contract, baby.) You basically end up in small claims court to get money do you. Just be the first to sue and make a VALID claim for what’s due to the COSIGNER.
This Site Might Help You.
How to buy out a car without a co signer?
My fiancee has a car that he did a 2 year lease on. He is about to be over his miles before the car is due to be turned in (August). He has little credit (the kind that required a co signer in the first place). Being since we are getting married, his dad has refused to re cosign for him to either…
Theres no easy answer here.
You are going to have to SAVE up money to pay for a car.
And you may have to pay the overage for the leased car too.
You can sell it IF you can get more than the payoff amount. But I wouldn’t count on that.
This is something your husband should have been thinking about for years now.
The fact that he is in this situation doesn’t bode well to your financial future.
How do you know you have no credit? Have you checked your score? Both prev answers were right….I wanted to add there is NO WAY that you will get a private person to pay the buyout price. Face facts honey..your boyfriend just got (F)leased. Leasing is a bad option, you paid all that money, now not only do you have NOTHING to show for it, he is going to have to pay extra just to get rid of it. Learn your lesson and get a good used car…honda or toyota or something.