Was referred to this Forum by Gregg from “Real Car Tips”…
I’m currently ending my 39 mos lease on a Chrysler 200 through Ally Financial. My father was a co-signer on the car as my credit score was in the low 600’s at the time. I also have a “charge off” on my credit from 2014 (Ford Motor Credit) for a Truck lease I turned in VERY early…I settled for $8,000 to them, but still a massive ding on my credit. And a Bankruptcy discharged in 2012.
My scores are all over 700 now. Ally Financial payment history is perfect. No credit card debt. Now have a mortgage loan. And solid income.
Would I possibly qualify for one of those low lease specials with $0 money down and $150-ish monthly payment? Say on a Chevy Cruz? Or will I struggle getting a lease with GM Financial due to the Ford Motor Credit charge off?
First of all congrats on a credit score above 700 and mortgage. I think it takes seven years for a bankruptcy to become history and the lease asks if you had bankruptcy. The 2014 ford settlement will also show since they look at lease history for sure.
Also depends on brands. Some brands ask for 730+ for tier 1 some are 700.
I believe they also look at debt to income, so depends if you have a strong ratio there.
I think you may still need a cosigner to get the best rates. Personally I would take a loan on a good off lease sedan. Much cheaper, smaller hit on the credit.
Used off lease premium sedans are the best value in the market right now.
The minimum credit score needed to lease is 575 for GM Financial and they will work with previous bankruptcies. My buddy just leased a 2017 Trax and his bankruptcy was in 2010, this is the only credit he has tried to obtain since then. His score was a 601. However, he has not able to get the base Money Factor of course, being that this was not a Tier 1. No security deposit was needed. Hope this info helps.
Money factor is the interest rate. Take whatever money factor they give you and multiply by 2400 to get the interest rate. The “base” money factor is the lowest rate they offer to people with the best credit.
they may offer… But not necessarily will since they always try to mark it up. @jessaflac - this will be your target and you can ask for that here or on Edmunds forum. Most likely you will not qualify for Tier 1 and best rate, though.
I was working on a deal to help out a family member with a Trax earlier this month since it has some good rebates. Their FICO Score of a 618 put them in the B2 tier and the finance manager explained to me that GM Financial has made it very difficult to get bumped up to a different Tier like before. I don’t know if having 2 previous leases with GM Financial would even help. He said they are strictly using fico auto score 9 for their decisioning.
