Lease – sometimes been referred to as a “long term rental”, it is usually the cheaper way to go in terms of a lower monthly payment, better cash flow, and it is especially beneficial to business owners because of the tax benefits. Lease in general is slightly more expensive compare to financing, only if you decide to purchase the vehicle out right. Typically lease payments are before taxes, that include monthly payment, residual payment, or down payment. Let’s take a brand new Honda Civic for example; a lease on a new Civic with 0 down payments is typically about $300 per month before taxes. With the residual buy back value set at 50% of the M.S.R.P (Manufacture’s Suggested Retail Price) a 20,000 Civic will usually carry a residual value of 10,000 after 48 month.

Leases are also know the payment of the depreciation which means the monthly payment usually matches the depreciation on the asset. Let’s look at a real example; this calculation is taken on December 24, 2009 from www.Honda.ca.

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Congratulations, you are approved for a bad credit car loan, and you have taken the very first step towards re-building your credit history. Here are few tips and good practices on how to re-building your credit history in a timely fashion.

What is the minimum duration before I can see an increase in my credit score?

The minimum term when it comes to rebuilding one’s credit history usually takes 12 month, or one year. This is the typical timeline a lender will use to judge your improvement when it comes to paying. So it is crucial for you not to miss any bill payments during this period. It is always good to show initiative without collection agency’s interference. For example you are paying off small debts voluntarily versus ignoring collection phone calls after phone calls.

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So you have decided to purchase a vehicle and getting a loan through a bad credit car loan provider. After submission of your application, you are anxiously waiting for the “good news”. Maybe it has been a few days since your application was submitted; you are getting worried if you are going to be turn down again. Patience my friend, your file are been processed by different lenders as you are reading this article.

Bad credit history usually means a longer wait period for many, this is important step for the banks or lenders to asses your risk factors. When your loan application is processed through the dealer, it is submitted automatically to all the sub-prime lenders at once. Perhaps some of them decided to turn your down, but others have not yet made up their mind. Don’t panic, let the application take its normal course and you soon should hear some encouraging news.

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