Overhaulin'

Auto Lease vs. Auto Loan - which is better option if I need to buy a car now, and buy a house in a year?

I and my partner plan to buy a house in one year, but I desperately need a new car 'coz my current car is breaking down. I've heard that an auto lease would NOT affect the mortgage rate, is that true? I wanted to finance the car 'coz I intended to keep the car for a long time. But if auto lease is a better option in terms of getting a better mortgage rate, I'd consider getting an auto lease and paying off the car after the lease ends. Any input would be appreciated. Our credit score is about 760+ to 810. (Please do not copy & paste answers from some other Yahoo members.) I'm not concerning the price of the car at this point, I'd like to know HOW THE AUTO LEASE VS AUTO LOAN WOULD AFFECT THE MORTGAGE RATES. Thanks.

Public Comments

1. I need to do the same thing . My plan is to buy a house after the first of the year and get a car in the spring. If possible I would hold out on the car unless your debt to income ratio if very low. The higher your ratio is the less money they will loan you and the bigger interest rate. I just read an article where a credit score of 750 is required now instead of 680 for the best mortgage rate. Hope this helps.
2. You're always better to finance than to lease a car. To get the best deal is to go into the dealership 15 minutes before they close at the last day of the month . You might be able to cut the price down to $2000 less than the asking price.
3. penguin, Try getting a free online auto loan quote. http://www.autoadviceonline.com/Free-Auto-Loan-Quote.html The questionairre will let you know if you can be approved. It's free and you can get an answer in minutes.