A relative of mine has bad credit (590) and his existing lease is ending. Getting information out of him is like prying teeth, but I don’t think his current lease is through a captive. Can he actually get a captive lease at that credit score? He has a decent income but is very irresponsible with money. Is there any publicly available information on lease credit tiers?
I am already planning on talking to local credit unions to see if they’ll finance a loan on a used car.
This isn’t the information you’re looking for, but I think the relative needs coaching on how to get that credit score where it needs to be. We have a more pertinent underlying issue here, other than simply trying to finance/lease another vehicle.
This relative is very resistant to coaching. Actually, he’ll accept the coaching, tell you he’ll follow it, and then continue to do whatever he feels like. So I am just trying to help with the immediate problem. If he can’t get to work, his credit is only going to get worse…
So does removing its minimum FICO requirement enable anyone to get financed, including buyers who may not be qualified to take out an 84-month loan on a brand-new car? The answer is no, at least based on a statement CarsDirect received from Ford Credit spokesperson Margaret Mellott via email this morning.
“Our proprietary scoring models do an excellent job of assessing the probability that an applicant will be able to pay. FICO is one input. Eliminating the separate FICO requirement opens the prospect of financing to more customers who would qualify for 84-month financing within our models regardless of their FICO score.”
There are captives that are more lenient. GM, Ford, Hyundai, Chrysler Capital as a few examples. That said, credit score alone isn’t the driving factor. If, by chance, he would be approved, the lease is going to be terrible with a high MF, especially with an MSRP deal and minimum incentives right now. His best chance is to sign a lease with his existing bank, whoever that is, assuming he made all payments on time. If he didn’t, he should probably resign himself to the fact a lease isn’t worth it, and buy a beater and work on fixing his credit in the meantime.