Why Olim Can Lease Cars Easier Than Financing

A lease company is not loaning money.  They are agreeing to lend the use of their property but will retain ultimate control of that property. This is not a negative, BTW, since cars are depreciating assets.

The lease provider’s concerns are threefold. Does the person have the capacity to fulfill the scheduled payments? Will they take care of my asset? If there is damage, are they likely to be responsible and bring it back to an acceptable condition?

The same dynamic applies in housing, you can rent a house or an apartment easier than you can buy one, if the landlord feels these 3 questions can be answered in the affirmative.

There is a minimum threshold that a lease provider requires. They want to see assets here. Your foreign credit rating abroad has no standing here.  Look at it from the other side of the table with these 2 players (UK) and (US). 

UK comes to America, wants to buy or lease car, and tells US I have an excellent credit rating back home. Everyone knows me. Here is documentation of my assets in the most highly regarded and stable bank in my home country.  US’s position is wow, that is impressive.  I understand the UK credit scoring situation. I understand your asset documents, BUT, if heaven forbid, you don’t keep up the payments or if you leave and go back to your home, what recourse do I have?  I cannot seize assets or impose payments in a foreign country.

Basic Requirements

1.Citizenship is vital. it’s not an absolute;  there can be extenuating circumstances, but for the sake of this conversation, let’s call it an imperative.

2.Move some of your liquid assets to a local Israeli bank account. If you simply open account here to receive your Olim benefits this will do nothing to advance your request for credit.   

3.Provide documentation that you have income from sources. Either local or abroad is fine.

And be prepared to increase the down payment – directly reducing the monthly payments. This is not an absolute either. Depending on account balance, length of time the account has been open when applying, and most importantly, if there is activity on the account, both deposits and withdraws, the possibility of an increased down payment fades.