My Auto 8 has taken a hit since I recently paid off my lease with a loan and then sold the car (couldn’t sell the car when it was leased). Thinking about asking a family member to co-sign my next lease, but was wondering how big an impact a co-signer with an outstanding credit score will have on the MF.
Depends on the brand and your score.
If your score is over 720, don’t bother.
It’s lower than 720. Also if the co-signer will have a bigger impact on the rate/MF of a car loan or lease.
Cosigner will affect a car loan the most.
Leases will change interest several points depending on where you are on the score now, but as it only affects the rent charge, you would pay less.
I’m not sure I follow what you’re trying to say here. Interest and rent charge are effectively fairly similar. An equal amount of change would result in basically the same difference in cost.
What is the vehicle in question here?
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Looking at a Genesis. Debating whether to lease or finance and figure out the impact a co-signer would have. I’d make a ~15% downpayment if I finance the car, but very hesitant to put down anything for a lease.
Well what I was trying to say is that a loan charges interest on the whole car price, a lease is on the the depreciation. So that would be a lesser amount right? a 1% on 40k is a lot more than a 1% on 10k right?
That is incorrect. Rent charge is against the whole value of the vehicle (well, technically it’s against the average value of the vehicle between cap cost and residual value) as compared to straight interest which is based on the loan at the given point in time when the interest is applied.
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Ok, but it still is less than a loan right?
Depends on the rate, but no, not really. It’s fairly equivalent. It’s just the same every month rather than a loan which is front loaded.
And what is your FICO Auto 8 score (both before and after your lease/loan/payoff)?
If you’re not in a rush to lease a new car, your score will most likely jump back up after a month or so, assuming otherwise good credit. When I paid off my Audi lease in December my FICO dropped 20+ points but it was back up within 60 days.
Different banks can view co-signers differently with regards to how they score your credit. This is ultimately a question you’d need to ask a Finance Manager at a Genesis dealer.
Perhaps @vinji can offer some perspective
Depends on the rates. Rarely have I seen the lease MF and captive purchase rate be the same, or even close.
Hmm, I will check that as I always believed it was less.
I’d be happy to walk you through the math in another thread if you want to start one. It becomes pretty clear when you decompose what “mf” is and how it relates to APR.
Well either way I see that for top tier you get a G70 for $409 + TTL versus 0% for 6 years as a dealer offer,
I am assuming that this is a first gen and getting a deal is going to be real rough.
It is going to be for a new GV70, so definitely paying MSRP. Starting to think financing might be a better option if I’m putting down $10K and getting a co-signer. Genesis’ MF also comes out to about a 4% interest rate, which is significantly higher than my Volvo lease.
I think you’ll be much better off purchasing a gv70 than leasing
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The lease offer is $4500 off, wouldn’t the lease / buyout later be more attractive than paying MSRP?
Didn’t know Genesis had a $4500 lease offer?