Personal Finance

Honda Finance - Lease Approval Question

  • Last Updated:
  • Oct 24th, 2019 2:20 pm
[OP]
Newbie
Feb 28, 2018
19 posts
3 upvotes

Honda Finance - Lease Approval Question

Hey all,

I’ve been a Honda Finance customer for 5 years. First with a financed vehicle, & now I’ve had a lease with them for the past 4 years.

When I initially financed I had decent credit, a few late payments, with a chunk of consumer debt. Probably a score in the low 600s. Was approved with Honda Finance no problem (1.99%)

Without going into details, I was critically ill, did not have payment protection on any of my credit products & eventually filed a consumer proposal to alleviate the financial hardship I was facing once I got home (thankfully).

Throughout all of this I still never missed a car payment with Honda thanks to my family.

My lease is maturing soon & I wonder if I will have trouble re-leasing a vehicle. My trustee initially told me I would likely be fine, but I’ve now run into a few people who have told me they were unable to be approved for financing on a vehicle with Honda due to lowers credit scores, not even in a proposal.

Was my trustee misinformed? I require a vehicle for my job as a case manager so this is quite important to me. Any input?
5 replies
Deal Fanatic
Apr 16, 2007
8000 posts
3297 upvotes
Financial District B…
AlwaysFlying13 wrote: Hey all,

I’ve been a Honda Finance customer for 5 years. First with a financed vehicle, & now I’ve had a lease with them for the past 4 years.

When I initially financed I had decent credit, a few late payments, with a chunk of consumer debt. Probably a score in the low 600s. Was approved with Honda Finance no problem (1.99%)

Without going into details, I was critically ill, did not have payment protection on any of my credit products & eventually filed a consumer proposal to alleviate the financial hardship I was facing once I got home (thankfully).

Throughout all of this I still never missed a car payment with Honda thanks to my family.

My lease is maturing soon & I wonder if I will have trouble re-leasing a vehicle. My trustee initially told me I would likely be fine, but I’ve now run into a few people who have told me they were unable to be approved for financing on a vehicle with Honda due to lowers credit scores, not even in a proposal.

Was my trustee misinformed? I require a vehicle for my job as a case manager so this is quite important to me. Any input?
Are you still paying that CP? not discharged?
Yes your trustee misinformed you.
Any new lease or auto finance requires a credit underwriting and scoring process.
This is because the new car will be..well..new in property age which means the terms will change such as interest rate and term length.
Under normal circumstances re-leasing with HCFI usually qualifies for a retention rate (subject to credit approval)
Individual TDSR changes so a new loan/lease re-evaluation is required.

But, not all is or will be lost.
Your best solution is to request a lease extension for a year or two or whatever their maximum term extension would be. That of course is subject to the vehicle and if they offer lease extensions for it.
This way you are not applying for a new auto lease and no re-assesment on your credit standing is required.
Last edited by mikeymike1 on Oct 24th, 2019 12:30 am, edited 3 times in total.
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[OP]
Newbie
Feb 28, 2018
19 posts
3 upvotes
Yes, the CP will be in repayment until May of 2022.

My trustee informed me that he’s never seen a customer in a CP be denied a new lease with HCFI if they’ve had an excellent payment history with HCFI on their current/precious vehicles.

That was my main concern when considering a CP since I work in the community as a healthcare professional & require my vehicle to travel to various homes/hospitals etc.
Deal Fanatic
Apr 16, 2007
8000 posts
3297 upvotes
Financial District B…
AlwaysFlying13 wrote: Yes, the CP will be in repayment until May of 2022.

My trustee informed me that he’s never seen a customer in a CP be denied a new lease with HCFI if they’ve had an excellent payment history with HCFI on their current/precious vehicles.

That was my main concern when considering a CP since I work in the community as a healthcare professional & require my vehicle to travel to various homes/hospitals etc.
All of this is subject to any new lease terms and payment.
If the new lease payment is significant higher then you may have issues with all or any of the creditors in your CP if they find out.
Keeping the new lease payment the same is key
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
[OP]
Newbie
Feb 28, 2018
19 posts
3 upvotes
The lease payment would probably be a bit lower than it currently is.
Deal Fanatic
Apr 16, 2007
8000 posts
3297 upvotes
Financial District B…
AlwaysFlying13 wrote: The lease payment would probably be a bit lower than it currently is.
If so then capacity should not be an issue for your ongoing CP.
But the capacity 'may' be an issue with HCFI qualifying you for the new auto lease.
Note they are two different things. (CP capacity is usually very high)

The only other problem that will arise is how HCFI assesses applicants with R7 tradeline ratings.
You should really contact HCFI and discuss your CP issue way ahead of the lease maturity and don't rely on what your trustee said.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again

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