Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

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OffTheGrid
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Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by OffTheGrid » Mon Apr 30, 2018 2:30 pm

My husband recently signed a lease for a new car and we picked it up yesterday. He has excellent credit, steady employment, and no debt (other than the new car).

We get a call today from the dealer today saying they made a mistake and actually need a co-signer! Needless to say I’m furious. He has great credit history (740+ all around, no late payments or bad marks, no other loans just credit cards that are paid in full each month) and is absolutely not a high-risk buyer. The monthly payment is a minuscule % of our monthly income.

Trouble is, I can’t co-sign... I have great credit but I’m getting our mortgage this week! (Just under my name and income, we were going to wait to get a car lease but we had our current vehicle die on us... hence just him taking on a car payment).

What can we do? What should we say to this dealer? This seems really suspicious and misleading to me. Part of me wonders if they’re pissed we got such a low payment on our lease...

(Oh, and this is not a thread about the pros/cons of leasing... we made this decision to lease based on our wants/needs and I’m sticking to it.)

Jags4186
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Jags4186 » Mon Apr 30, 2018 2:32 pm

Say sorry but no can do. Offer to return the car for refund. They won't be able to sell the car as new anymore so they'll take a pretty big hit. They'll likely just let it go.

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8foot7
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by 8foot7 » Mon Apr 30, 2018 2:33 pm

Let them know you'll be dropping off the car and the keys tomorrow and that you expect a check of all money you put down at the same time.

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Pajamas
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Pajamas » Mon Apr 30, 2018 2:35 pm

OffTheGrid wrote:
Mon Apr 30, 2018 2:30 pm
My husband recently signed a lease for a new car and we picked it up yesterday. . . .
We get a call today from the dealer today saying they made a mistake and actually need a co-signer!
I would ignore the dealer.

dknightd
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by dknightd » Mon Apr 30, 2018 2:38 pm

If it a minuscule % it probably won't matter.
You could tell the dealer you are sorry for their mistake, but a deal is a deal.
Or you could tell them you'll stop by next week

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Alexa9
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Alexa9 » Mon Apr 30, 2018 2:42 pm

I have never heard of this after it's a done deal. You could refuse, return it, or do it. I would offer to return it and see what they say.

James Kiff
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by James Kiff » Mon Apr 30, 2018 2:45 pm

I don't understand what leverage they have over you at this point. You have a signed lease, unless there is some unknown trick they are playing I don't see how their desires for another co-signer has anything to do with you. So I would do as others have said and call their bluff, let them know you have no intention of doing anything further, the deal is done and there is no reason for you to have anything to do with the dealer ever again. (And I would certainly never set foot in that place again)

OffTheGrid
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by OffTheGrid » Mon Apr 30, 2018 2:50 pm

I’d love to say that we’re returning the car...

but we also really need a car! 😬 so...

Can anyone even explain to me WHY someone with great credit would need a co-signer? That almost confuses me more than the fact that they want to go back on the deal...

N10sive
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by N10sive » Mon Apr 30, 2018 3:00 pm

Length of credit history?!?! No other previous large installment loans?

From what your explaining it doesn't seem like there should be an issue if its not a large amount of your take home unless your specifying both your monthly income. If he has great credit but only say 30% of your total income while you bring home 70% that could be an issue. Especially if you put both your incomes on the application and they later found out it was false(hard to believe though).

The dealership shouldn't have any leverage though as others have suggested. You signed the papers. It should be a legal binding contract....

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by soccerrules » Mon Apr 30, 2018 3:00 pm

OffTheGrid wrote:
Mon Apr 30, 2018 2:50 pm
I’d love to say that we’re returning the car...

but we also really need a car! 😬 so...

Can anyone even explain to me WHY someone with great credit would need a co-signer? That almost confuses me more than the fact that they want to go back on the deal...
Maybe it was a mistake and the call was for another buyer ?

Just conjecture on my part for it being you, no real experience or evidence to back up my thoughts.
1) This is first car lease/loan you have ever applied for ?
2) Lease was on his income alone (not combined income) - so % of HIS income is high ?
3) Have only had "credit" for a few years -- basically you are young with 1-2 years credit history.
4) Mistake on application (wrong income listed)

Can you wait to reply until after YOU close on the house ? --then if it is legit you can go co-sign.
Don't let your outflow exceed your income or your upkeep will be your downfall.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Nate79 » Mon Apr 30, 2018 3:01 pm

OffTheGrid wrote:
Mon Apr 30, 2018 2:30 pm
My husband recently signed a lease for a new car and we picked it up yesterday. He has excellent credit, steady employment, and no debt (other than the new car).

We get a call today from the dealer today saying they made a mistake and actually need a co-signer! Needless to say I’m furious. He has great credit history (740+ all around, no late payments or bad marks, no other loans just credit cards that are paid in full each month) and is absolutely not a high-risk buyer. The monthly payment is a minuscule % of our monthly income.

Trouble is, I can’t co-sign... I have great credit but I’m getting our mortgage this week! (Just under my name and income, we were going to wait to get a car lease but we had our current vehicle die on us... hence just him taking on a car payment).

What can we do? What should we say to this dealer? This seems really suspicious and misleading to me. Part of me wonders if they’re pissed we got such a low payment on our lease...

(Oh, and this is not a thread about the pros/cons of leasing... we made this decision to lease based on our wants/needs and I’m sticking to it.)
This statement doesn't jive with what you are doing. You say "our" monthly income but "he" signed the lease. "Our" income is meaningless. What is the lease as a % of his monthly income? Are any other large expenses listed under his name (like housing cost)?

What did you sign so far?

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by bloom2708 » Mon Apr 30, 2018 3:03 pm

Why do the car in one name and house in your name only?

Do you file "married filing separately" for tax purposes?

If a small car lease tips the home purchase or the other way around, I'm not sure what to think. Maybe your credit history just isn't there or as good as you think?
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

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dm200
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by dm200 » Mon Apr 30, 2018 3:09 pm

I suspect something else is going on here.

I would just call their bluff and offer to turn over the keys,. get any money back and ask/demand the contract be cancelled.

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Mlm
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Mlm » Mon Apr 30, 2018 3:14 pm

Was it just his income or both incomes that were used to qualify for the lease? If it was just his I would ignore the dealer.
Reality has a way of catching up with you

DesertDiva
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by DesertDiva » Mon Apr 30, 2018 3:18 pm

I agree with other posters - tell them you will be returning the car and will be visiting another dealership

delamer
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by delamer » Mon Apr 30, 2018 3:18 pm

OffTheGrid wrote:
Mon Apr 30, 2018 2:50 pm
I’d love to say that we’re returning the car...

but we also really need a car! 😬 so...

Can anyone even explain to me WHY someone with great credit would need a co-signer? That almost confuses me more than the fact that they want to go back on the deal...

Have you pulled your husband’s credit recently, or did the dealership? In other words, how sure are you of his credit rating?

Credit card minumums count in debt-to-income ratios. And the issue is his income since you aren’t on the loan.

I wouldn’t be so sure that the dealership doesn’t have some recourse built into the contract in the event that some negative information is found on the lessee.

You can always rent a car for a couple weeks until you are ready to purchase. I’d suggest telling the dealership that there is no co-signer available and do they want the car back — with a full refund of all your costs — given that?

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by UpperNwGuy » Mon Apr 30, 2018 3:20 pm

I wonder if they would have required a co-signer if it had been a car loan instead of a lease?

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by N10sive » Mon Apr 30, 2018 3:23 pm

You could return the car and rent a car for the interim.

Jags4186
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Jags4186 » Mon Apr 30, 2018 3:30 pm

OffTheGrid wrote:
Mon Apr 30, 2018 2:50 pm
I’d love to say that we’re returning the car...

but we also really need a car! 😬 so...

Can anyone even explain to me WHY someone with great credit would need a co-signer? That almost confuses me more than the fact that they want to go back on the deal...
I don't know where you live nor do I know what type of car this is. But if you live in a relatively populated area and you chose a relatively common car--Honda Civic/Accord/CRV, Toyota Corolla/Camry/Rav4, Ford/Chevy SUVs or pick up, etc. etc.-there are likely dozens of dealerships within a stones throw who have dozens of those models on the lot ready to be leased out. It wouldn't surprise me if you could return the car and have a similar new one from a different dealership in the same day.
Last edited by Jags4186 on Mon Apr 30, 2018 3:31 pm, edited 1 time in total.

Spirit Rider
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Spirit Rider » Mon Apr 30, 2018 3:31 pm

Most offers of credit including leases have specific language stating that the credit is subject to final approval by the lender. Read the paperwork, it is most likely there. The dealer is only acting as an agent. It is rare, but final underwriting denials do occur.

So the advice to totally ignore are dangerous. You could be liable for the diminished value of the car when you are forced to return it or it is repossessed.

If you respond in a timely manner, replying that you have no co-signer available and will return the vehicle. It is on them.

Note: While your husband has good credit it is not excellent. Some interest rates and lease money factors are only available to those with excellent credit. It would not be the first time dealers put through marginal finance/lease applications, hoping it will be approved and thinking you are so emotionally committed that when presented with a higher interest rate/money factor, you will submit.

Contact the dealer and call their bluff by returning the vehicle.

OffTheGrid
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by OffTheGrid » Mon Apr 30, 2018 3:39 pm

To clarify, since it has been asked: the dealer’s finance department based the loan on our combined household income, but even if it wasn’t ... we’re talking a low debt-to-income ratio.

I check our credit regularly and they even told us his score. They pulled his “lowest” report but it was still 740! They literally said his report “looked excellent.” He has only had a really active credit history for 5 years, but I didn’t think that was terrible?mostly credit cards, one small loan paid off a while ago...

My scores are over 800 and because we don’t need our combined income to make the home purchase we want, we were just using my credit and income. On the advice of my lender and realtor we decided to just put the car in his name so as to get the best possible mortgage rate.

I’ll be reviewing the lease documents when I get home — just to see what kind of options the dealer had even after he signed.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by ssquared87 » Mon Apr 30, 2018 3:47 pm

You're wasting your time.

You signed the deal and they gave you the car. If they made a mistake it's their problem. Either ignore their calls, or just tell them they have two options. 1. Take the car back and refund any money
2. Honor the deal.

At this point they have no right to ask you for anything else, the documents have been executed

student
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by student » Mon Apr 30, 2018 3:59 pm

Spirit Rider wrote:
Mon Apr 30, 2018 3:31 pm
Most offers of credit including leases have specific language stating that the credit is subject to final approval by the lender. Read the paperwork, it is most likely there. The dealer is only acting as an agent. It is rare, but final underwriting denials do occur.

So the advice to totally ignore are dangerous. You could be liable for the diminished value of the car when you are forced to return it or it is repossessed.

If you respond in a timely manner, replying that you have no co-signer available and will return the vehicle. It is on them.

Note: While your husband has good credit it is not excellent. Some interest rates and lease money factors are only available to those with excellent credit. It would not be the first time dealers put through marginal finance/lease applications, hoping it will be approved and thinking you are so emotionally committed that when presented with a higher interest rate/money factor, you will submit.

Contact the dealer and call their bluff by returning the vehicle.
Good advice. Don't ignore it and offer to return the car.

ResearchMed
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by ResearchMed » Mon Apr 30, 2018 4:00 pm

The one thing that bothers me about this is that you used the joint income, but apparently had only one signature.

I'd worry just a bit about this.

But it should suffice to tell them, if you choose this, that there is no co-signer available (no reason needs to be given), so you'll just return the car in exchange for all monies/deposits/etc., refunded.

Also, in case this is another possibility, are you sure that you wouldn't qualify for the mortgage with a joint car loan?
Of that *both* of you, with combined incomes, wouldn't get the same rate on the mortgage, given your income/credit score?

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by chevca » Mon Apr 30, 2018 4:01 pm

OffTheGrid wrote:
Mon Apr 30, 2018 2:50 pm
Can anyone even explain to me WHY someone with great credit would need a co-signer? That almost confuses me more than the fact that they want to go back on the deal...
This is something the dealership should be explaining. What was their reason for him needing a co-signer now?

You're telling us your reasons for why he shouldn't... and it sounds like he shouldn't. But, what are the dealership's reasons he should have a co-signer? You seem to have your assumptions about their reasons. But, have you gone directly to them and asked, why in the world does he need a co-signer?

chevca
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by chevca » Mon Apr 30, 2018 4:02 pm

Or, tell them about the mortgage wrapping up this week, and co-sign next week.


boglegirl
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by boglegirl » Mon Apr 30, 2018 4:54 pm

Pajamas wrote:
Mon Apr 30, 2018 4:07 pm
Auto lease co-signer scam exposed:

https://www.autocheatsheet.com/car-deal ... -scam.html
I'm sure that happens, but the OP said her husband's credit is excellent. So why would the dealer pull this scam?

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Pajamas
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Pajamas » Mon Apr 30, 2018 4:56 pm

boglegirl wrote:
Mon Apr 30, 2018 4:54 pm
Pajamas wrote:
Mon Apr 30, 2018 4:07 pm
Auto lease co-signer scam exposed:

https://www.autocheatsheet.com/car-deal ... -scam.html
I'm sure that happens, but the OP said her husband's credit is excellent. So why would the dealer pull this scam?
I don't know, it just seems a little odd. There could be a different scam going on, or maybe just a switch & bait. The dealer might have even made a legitimate mistake since the lease was based on dual incomes.

If it was not made clear that both would have to sign the lease, then it would be reasonable to simply say "There is no co-signer available."

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dm200
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by dm200 » Mon Apr 30, 2018 5:04 pm

Auto leases are, under the covers, loans (that balloon at the end of the lease term). My guess is that the buyer of the underlying loan wants (or expects) more backing (such as debt to income ratio) and requires two signatures as a condition of buying the underlying loan for the lease.

OffTheGrid
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by OffTheGrid » Mon Apr 30, 2018 5:51 pm

Update: we are waiting for a call back, as no one was available when we first called, but they left a follow up voicemail saying it was because *most* of my husbands credit cards are as an AU (I opened them with him...) That’s it.

Pretty annoyed at 1) the dealer and 2) myself, for not just getting some more credit lines in his name only! Ugh!

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Spirit Rider » Mon Apr 30, 2018 5:56 pm

boglegirl wrote:
Mon Apr 30, 2018 4:54 pm
Pajamas wrote:
Mon Apr 30, 2018 4:07 pm
Auto lease co-signer scam exposed:

https://www.autocheatsheet.com/car-deal ... -scam.html
I'm sure that happens, but the OP said her husband's credit is excellent. So why would the dealer pull this scam?
740+ is good, but not excellent. The dirty little secret hidden in the fine print, is that to get the best deals from manufacturer leases you need excellent credit. This is usually 780-800+ FICA Classic.

quantAndHold
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by quantAndHold » Mon Apr 30, 2018 5:59 pm

I had this happen once. I bought the car, financed at the dealer, took it home, and he next day the loan person called and asked if I had someone who could co-sign. I just said no. They never bothered me again.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by nhdean » Mon Apr 30, 2018 6:26 pm

There is a problem, and it is not the dealer. When you do paperwork on a vehicle you sign a spot disclaimer form stating that if, for whatever the reason, financing does not go through or the check bounces, the dealer can take the car back. This is a finance situation .

It seems that you combined both your incomes but only he is on the lease. Unless you are on the deal you cannot use your income. I would bet that the bank looked at his income alone and his debt to income was not sufficient.

Either he gets a cosigner or he returns the car. Also, if a bank gives a decision on a loan or lease for a dealer, that bank must give it to all dealerships. Maybe another manufacturer with a different bank my have different results.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by ponyboy » Mon Apr 30, 2018 6:30 pm

Yep...tell the dealer you'll be bringing the car back...and they can provide a full refund.

Something sorta similar happened to my dad. Bought a new gmc sierra. Had truck home...2 days later they called and said something happened with financing and the interest rate would increase slightly. He basically said...thats your problem. If you cant figure it out ill be bringing the truck back. They called back in 2 hours and the dealer straightened everything out on their end. Imagine that, lol.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by ResearchMed » Mon Apr 30, 2018 6:30 pm

nhdean wrote:
Mon Apr 30, 2018 6:26 pm
There is a problem, and it is not the dealer. When you do paperwork on a vehicle you sign a spot disclaimer form stating that if, for whatever the reason, financing does not go through or the check bounces, the dealer can take the car back. This is a finance situation .

It seems that you combined both your incomes but only he is on the lease. Unless you are on the deal you cannot use your income. I would bet that the bank looked at his income alone and his debt to income was not sufficient.

Either he gets a cosigner or he returns the car. Also, if a bank gives a decision on a loan or lease for a dealer, that bank must give it to all dealerships. Maybe another manufacturer with a different bank my have different results.
What does that bit mean about "... that bank must give it to all dealerships" mean?

Wouldn't dealerships be getting inundated with credit decisions that have nothing to do with them?

RM
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by nhdean » Mon Apr 30, 2018 6:34 pm

ResearchMed wrote:
Mon Apr 30, 2018 6:30 pm
nhdean wrote:
Mon Apr 30, 2018 6:26 pm
There is a problem, and it is not the dealer. When you do paperwork on a vehicle you sign a spot disclaimer form stating that if, for whatever the reason, financing does not go through or the check bounces, the dealer can take the car back. This is a finance situation .

It seems that you combined both your incomes but only he is on the lease. Unless you are on the deal you cannot use your income. I would bet that the bank looked at his income alone and his debt to income was not sufficient.

Either he gets a cosigner or he returns the car. Also, if a bank gives a decision on a loan or lease for a dealer, that bank must give it to all dealerships. Maybe another manufacturer with a different bank my have different results.
What does that bit mean about "... that bank must give it to all dealerships" mean?

Wouldn't dealerships be getting inundated with credit decisions that have nothing to do with them?

RM
I will use GM Financial for an example. If somebody comes in and does a GM lease and GM financial declines it. The person goes to anther GM dealership and works up another lease. GM Financial won't give that dealership an approval with declining the previous dealership. I am assuming the customer is leasing the same vehicle and the numbers are the same.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by ResearchMed » Mon Apr 30, 2018 6:41 pm

nhdean wrote:
Mon Apr 30, 2018 6:34 pm
ResearchMed wrote:
Mon Apr 30, 2018 6:30 pm
nhdean wrote:
Mon Apr 30, 2018 6:26 pm
There is a problem, and it is not the dealer. When you do paperwork on a vehicle you sign a spot disclaimer form stating that if, for whatever the reason, financing does not go through or the check bounces, the dealer can take the car back. This is a finance situation .

It seems that you combined both your incomes but only he is on the lease. Unless you are on the deal you cannot use your income. I would bet that the bank looked at his income alone and his debt to income was not sufficient.

Either he gets a cosigner or he returns the car. Also, if a bank gives a decision on a loan or lease for a dealer, that bank must give it to all dealerships. Maybe another manufacturer with a different bank my have different results.
What does that bit mean about "... that bank must give it to all dealerships" mean?

Wouldn't dealerships be getting inundated with credit decisions that have nothing to do with them?

RM
I will use GM Financial for an example. If somebody comes in and does a GM lease and GM financial declines it. The person goes to anther GM dealership and works up another lease. GM Financial won't give that dealership an approval with declining the previous dealership. I am assuming the customer is leasing the same vehicle and the numbers are the same.
I wasn't thinking of the car-dealer brand doing the financing.
You wrote "bank", and that seemed... a bit much!
And this is the same for a sale, not just a lease, I take it?

We've never financed a car "through the car brand"; either a credit union or outside bank, even if "arranged through the dealer". Whoever gave the lowest rate (when looking for financing) is where we ended up.
(Even when we planned to pay cash, IF we found a ridiculously low rate, given the rate environment at the time, we'd take the loan for a least part of the cost. This past time, we were all set with the credit union, but the dealer found a local bank for even less, for the same exact CPO car, same amount, etc. So we "jumped ship".)

RM
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by nhdean » Mon Apr 30, 2018 6:51 pm

I reread it and I agree with you. It is the same for a loan as well.

GreenGrowTheDollars
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by GreenGrowTheDollars » Mon Apr 30, 2018 6:52 pm

1. Let the dealer know that there is no cosigner available and that you're happy to return the car if that is an issue.
2. If yes, call Enterprise and rent a car for a couple of weeks until your mortgage closes.

OffTheGrid
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by OffTheGrid » Mon Apr 30, 2018 6:56 pm

So I get it if they are just counting his income... but then when the heck did a 10% debt to income ratio become “high risk”?!

My husband spoke with financing again, and they did admit it had nothing to do with debt to income just the AU thing, and my husband said he did not have someone else to sign. The dealer did not seem upset by this... like he was just going to call us back later this week? And he is just waiting for us to find someone? I wasn’t on the call but it seems odd they apparently don’t care very much after telling them he doesn’t have a co-signer.

What are the odds they’ll wait for me to co-sign if I prepay the next month? Probably wouldn’t work that way...?

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by nhdean » Mon Apr 30, 2018 7:02 pm

Prepaying doesn't work. According to the lease company there is not a deal. Sometimes it is easy to blame the dealership. I do not think they are scaring you at all. The dealership wants the deal just as bad as you, if not more. It is tough to say exactly what happened. A 740 score is right on line between 2 different tiers. He may have been approved for a lower tier which increased the payment substantially.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by GreenGrowTheDollars » Mon Apr 30, 2018 7:16 pm

Don't look a gift horse in the mouth. Leases are generally a bad deal and if you can get out of this one, you'll like have much better options in a few weeks. Spending $400 or so for a two week car rental is minor in the course of things.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Chris K Jones » Mon Apr 30, 2018 7:18 pm

It is a good opportunity to get rid of the car. Bring it back for a refund.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by 8foot7 » Mon Apr 30, 2018 7:23 pm

Dealer finance guys can work their captive lender (ie GM Financial for GM cars, etc) for deals. Well, they can work anyone, but the captive lender has the most incentive to do deals. When you push back on these requests you prompt the guy to do a little more legwork. If the situation with your husband’s credit is indeed as you say it is, this will probably go away. But you have to call the bluff first.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by DaftInvestor » Mon Apr 30, 2018 7:35 pm

Maybe it has nothing to do with his credit score. Maybe they discovered other outstanding debts and his debt/income ratio is too high. Of course this could also happen if his income is just low compared to the car he is leasing.
You said something about you, his spouse, getting a mortgage in your name - maybe that showed up on the credit report.

Or maybe his credit isn't as good as you think. If you look in one place and see 740+ are you sure that's the same agency/source the dealership used?

They probably have an "out" clause that claims if any mistakes are made both parties will do their best to correct them so ignoring them may not be the best solution.

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by OffTheGrid » Mon Apr 30, 2018 7:50 pm

I feel like a broken record but I’m saying it again...

YES I know what was in the credit report and NO it was not because of debt-to-income ratio.

We are NOT ignoring them! We’ve talked to them about this. At the moment, they don’t really seem to care he doesn’t have a co-signer. (I don’t know if that’s because this is going to work out or because they expect us to eventually come up with one.)

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by bloom2708 » Mon Apr 30, 2018 8:04 pm

Do other married couples work hard to keep separate credit? Is this a protection of each individual?

Just in case the marriage doesn’t last?

Things do change so I might just be unaware of current practices.
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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by Mlm » Mon Apr 30, 2018 8:07 pm

OffTheGrid wrote:
Mon Apr 30, 2018 7:50 pm
At the moment, they don’t really seem to care he doesn’t have a co-signer.
Believe me, they care because he didn't qualify for the lease (loan) on his own. They may either ask him to sign a new lease with a higher rate or have him return the car. It's probably a good time to think about your options now.
Reality has a way of catching up with you

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Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

Post by ResearchMed » Mon Apr 30, 2018 8:09 pm

bloom2708 wrote:
Mon Apr 30, 2018 8:04 pm
Do other married couples work hard to keep separate credit? Is this a protection of each individual?

Just in case the marriage doesn’t last?

Things do change so I might just be unaware of current practices.
Credit scores/reports are individual only.

If a couple applies together for a loan/mortgage/etc., then the creditor would consider the scores/reports/history of both of them, but the data are still reported individually.

If one spouse has a much better score than the other, then they might prefer to get credit in the better-score spouse's name only, rather than being declined or offered a higher rate.

And this also shows why it is important for each person to get his/her *own* credit history, and not just as an "authorized user" on the spouse's account(s).

RM
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