To be clear, it was primarily just a hypothetical question as to whether paying down this balance helps the ratios in a meaningful way whilst remaining reimbursable in case of a total loss, unlike a down payment (which is typically said to avoid for that very reason).
Not trying to make statements on my own credit, nor am I asking for assumptions. I don’t even hold a lease anymore. 
Sorry if it was unclear from my original post.
That’s how I took it. There are several moving parts in your question, and because I consider the premise itself ill-advised I wasn’t willing to torture my brain through all of them.
Somehow I doubt you would get your money back.
Pretty sure they usually assume you’ll get another lease to replace the current one (if you need a car now you’ll continue to need a car is the assumption).
Someone can correct me if I’m wrong.
Trying to recall, is DTI considered in a lease application, or are they just concerned with credit score?
I’m about to sign a lease on an Alfa. I do have a few blemishes on my credit and have a cosigner. When I put the application in, I both of our names on the paperwork. I received a phone call from the finance guy yesterday, he said that I qualified for Tier 2 by myself and that increases the monthly payment by $50. He also said that having a cosigner doesn’t change anything with Ally, and the only way to get to Tier 1 would be to have him on credit app by himself (that’s a straw purchase if I’m not mistaken). Frankly, I was surprised that I qualified for Tier 2 by myself.
2 questions:
Is it true that having a cosigner with a much better credit score than mine (he has 750) won’t bump me up to Tier 1, with Ally?
Does it make sense that the payment went up $50 going from 1 Tier to another? I’m waiting for them to provide me with the #'s so that I can plug them into the calculator
Yes that is a straw purchase, I’m pretty surprised an F&I manager suggested that.
A co-signer who is Tier 1 should put you at Tier 1. That’s the entire point of a co-signer on a lease or loan. It’s not a mortgage. My guess is that he’s marking up the MF and this is an excuse to do so. Ask him to show you the approval from Ally with your considered credit score (and tier) on it.
Regarding the monthly, there’s no way of telling without the numbers. He could be dumping adds into it for all we know since 99.9% of people don’t read their contract let alone back calculate the MF.
Exactly what I think about the point of a co-signer, but after my fiasco with Volvo (they want both parties to qualify for the loan - then what’s the point of a co-signer?lol) I wasn’t surprised by what he said
I have had pretty perfect credit most of my life but recently had some issues regarding a real estate loan (Pre COVID) which brought my score down to upper 600. Other than that issue, all My bills including 2 current leases are And have always been paid on time. Would I be able to lease a car anytime soon? How strict is the auto industry now with so many suffering due to COVID?
It depends on what make/model you’re looking at and what you mean by “upper 600’s”.
If by upper 600’s you’re talking 691 then you shouldn’t have any problem (assuming your income is ok) although you might get bumped down to Tier 2 in terms of MF.
But if by upper 600’s youre talking 651 then it could/will be an issue to get approved.
Approval odds, tiers, credit requirements and such all haven’t changed much if any due to covid. Again a lot will depend on what make and model youre looking at.
I don’t know that I agree with this. It’s my understanding at least some have gotten tighter with underwriting
Spoke with the Finance Manager. He claims he told me that he can put the co-signer on the app, but he’ll have to be the first name…now I don’t recall him telling me that but whatever. I can still register and insure the car under my name.
Any drawbacks to me being the second name on the loan? I’ve heard of the person with the stronger credit being put first on the app - so I’m pretty sure it’s common.
The first person would be listed as the primary owner, and you’d be secondary. As far as credit reporting goes, it won’t matter. As far as payment goes, if you miss one (assuming you’re the one paying for it), they’ll go after primary first. If they don’t get anywhere with them, they’ll come after you. Both your reports (primary and secondary) will show the note, and be affected both positively (and negatively if there are any 30 day misses) by payment history.
TLDR:
No drawbacks provided payment is current
Thank you!
By upper I mean 675 or so… was 840 just. few short months ago. however, my current 2 leases don’t expire until next summer so hopefully it will bounce back. A part of me really resents how this entire credit rating system works and just skip the entire lease’ loan process, and transition to cash purchases only (real estate, cars, etc.). This way we can all live within our means Thanks for the reply, by the way!
840 to 675 is brutal. What did you? Are you 90 days late on your 100 million dollar real estate portfolio?
What are the DTI limits dealers Will work within? I have a strong lease history, 800+ credit, but have income that won’t be considered, and just bought a new property, so DTI appears high. I’d like to get into a new lease but don’t recall DTI limits.
If you’re an 800+ you shouldn’t have any issues qualifying, but if your DTI is high, you won’t have an 800+.
Income isn’t a factor in credit scoring.
In my 7 years of selling cars I never remember anyone not getting approved that was an 800+, and 800+ didn’t have their revolving credit tapped out either
That doesn’t change the fact that income isn’t a factor in credit scoring.
Hence, 
is not a true statement.
You can also have millions of dollars in monthly debt payments and have no revolving debt.