Agreeing to cosign a Lexus lease for a family member or a friend is an act of trust and support. It is often the key that allows somebody to get behind the wheel of a luxurious, safe, and feature-filled Lexus car of their dreams. However, before you lend somebody else your credit history here at Lexus of Valencia, it’s essential to keep these three things in mind.
Your Credit Score and History Are Impacted
The moment you cosign a Lexus lease, it appears as an active debt obligation on your credit report, not the lessee’s credit report. This increases your overall debt load and affects your debt-to-income ratio, which could impact your ability to qualify for future loans, like another car loan, a mortgage, or new credit cards. Also, any late or missed payments made by the lessee will directly damage your credit score.
Your Share Full Financial Responsibility
Cosigning a lease is more than just providing a character reference. When you cosign a Lexus lease at Lexus of Valencia, you become legally and equally responsible for the entire financial obligation of the loan. This means that if the lessee fails to make payments for any reason, Lexus Financial Services can require you to assume those payments. This not only includes the monthly payment but also any late fees or extra charges.
It’s a Long-Term Commitment
Lease agreements are binding legal contracts for a specific amount, typically 24 to 48 months. When you cosign, you are committed for that entire duration. Unlike some other financial situations, removing yourself from a cosigned lease or loan can be difficult, and often impossible.
Cosign a Lexus Lease at Lexus of Valencia
While cosigning a Lexus lease is a serious undertaking, it can also significantly help a friend or family member. Our finance professionals are here to help guide you through the leasing process at Lexus of Valencia. Pay us a visit to learn more about what goes into cosigning a lease.
