How does buying an automobile vs. leasing effect your credit?

Deal Score0

I’ve done several lease assumptions, and found some very good deals. Now I currently have 700+ credit and would like to keep it that way. basically I’d like to determine what would impact my credit score more doing another lease take-over or drawing a 20k loan and purchasing a used SUV. Also, on a purchase I could make a significant downpayment if it will help.
There is going to be an inital credit score reduction just for the inquiry.. I’m wonder which would make a bigger difference buying used vs. lease take over.

  1. Reply
    November 10, 2011 at 1:53 am

    Whether you lease or purchase, you are still getting a loan. Your credit is affected only if you fail to make payments.

  2. Reply
    November 10, 2011 at 1:55 am

    There’s no difference in the effect on your credit, until the end of the lease. If you follow through on all terms of the lease it will be a good thing for your credit. If you purchase just make sure every payment is made on time.
    A large down payment will not reduce your monthly payment very much, so save your cash for future needs.

  3. Reply
    November 10, 2011 at 2:22 am

    it doesn’t effect you much unless you start to default on your loan/lease payments.

  4. Reply
    November 10, 2011 at 3:09 am

    The only thing that would vary on a lease vs a loan would be your total debt you’re accountable for. Your debt on a loan would be higher than the debt of a lease.
    But as previous posters have already said, neither will have a negative effect on your credit score more than the other unless you make a late payment.

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