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Posted on: 16th Feb, 2007 05:32 pm
I CAN LEASE A 46000 CAR FOR $525 lease payment or buy one for 25000 $525 loan payment
Hi Willjeffw,

As both the payments are same, purchasing will be a better option as you will add another personal asset. Debt to income ratio is calculated by analyzing your total monthly debt payments to your income. Whether you lease or purchase the DTI will remain same for you as in both cases it is the same amount $525.
Posted on: 16th Feb, 2007 05:43 pm
Hi Willjeffw,

Welcome to the forums.

The debt-to-income ratio will depend upon the payments you make on different types of loans including the car lease/loan payment. Now, the debt-to-income ratio will vary depending upon your monthly lease/loan payment. And, the more you pay towards the debt, the higher the debt to income ratio.

However, creditors and lenders prefer low debt-to-income ratio. And, the lower your monthly payment on lease or car loan, the lower will be the debt-to-income ratio.

Posted on: 16th Feb, 2007 08:35 pm
thanks to all for your quick response, you have been most helpful.

Posted on: 16th Feb, 2007 09:20 pm
Yeah I agree with you Jeff.

This community really is very helpful. In fact, this is what inspired me to be a part of this community and help others with the little information that i can provide on financial issues.
Posted on: 17th Feb, 2007 04:46 am

Nobody asked what seemed to me the common-sense follow-up question to your question. If you are in the process or nearly in the process of buying a home....why take on a new car debt now? Why even add it to the mix?
Posted on: 19th Feb, 2007 06:25 am
I think you are right Ken.

Initially I was doubtful as to whether he is buying a home. But if he has asked whether a car lease or buying would affect his debt-to-income ratio it indicates that he may have thought of home buying.

A new home along with a car debt - that's quite expensive!
Posted on: 20th Feb, 2007 03:35 am
Hi Ken,

My wife and I are in the same boat..we've been looking for a home for a LONG time and are frankly fed up with it. We've put everything on hold for a stupid house and we now feel it wasn't worth it.

If a $200-300 payment is going to affect your home purchase plans, I don't think one should even be looking for a home in the first place. Life's too short IMO.
Posted on: 11th Dec, 2010 02:50 pm
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