Did we get swindled?

Situation is such that I have really shitty credit score (540) and my wife has good one (700). Base MF being offered for “well qualified customers” was 0.00120. We were offered a 0.00170 MF on our joint applicatio. Is it fair or is the dealership marking it up?

Depends which manufacturer. I know Volkswagen Tier 1 credit starts at 740.

Can you ask the salesperson which credit tier you received? In the future, it would be better to explain the situation first and ask what your rate with be with those scores so you don’t get hit with a hard inquiry for nothing.

Be aware that dealerships are allowed to mark up the money factor a certain % from the MF specified by the leasing company. GM Financial allows an 84 point markup, for example.

Assuming you guys do qualify for the highest tier, the dealer bumped up the rate for extra $$$ in your case. Pretty crappy, but completely legal.

We were in Tier 2 as per Lexus Financial website.

You can buy down the MF with MSD’s but if the tier you fall in is the tier they have to use.

Since that’s not the top tier, you very well could have only qualified for the money factor the dealer charged. Dealer can’t charge less than what the leasing arm specifies.

I guess Toyota/Lexus requires a higher credit score for top tier than GM. A 620 credit score is all you need for the best rates on a GM lease.

Also if your wife could have signed off on it by herself that would have been best. No reason to have that on both of your income to debt ratios.