Tier 2 Credit MF range?

Trying to leas a Jeep Wrangler, was quoted as tier 1, and got 0.00175 for the MF.

Got a call from manager, he could not do tier 1 only tier 2. Does anyone know if he is playing some trick? What is the best rate I can get from tier 2?


I ended up w/ Tier 2. MF was .00039 on an Alfa Romeo Giulia.

Did he mention it was a different rate for tier 2? I remember when I leased my first Grand Cherokee back in 2015, tier 1 and 2 rates were exactly the same. I have no idea if they are still doing that though.

Ask to see the approval or they could be bs’ing you, this is a common practice to bump people’s payment

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0.0039 is higher than me, I got 0.00274:(

Yea…they said it is different rate, and the monthly payment is 100+ difference

They did Show the approval from Chrysler Capital, they can not play the number in the approval?

You could shop some other dealers and tell them you are tier 2 approved

.00039 not .0039. Big difference.

I feel like .00274 is high for Tier 2, but I’m new to this. That’s a 6.58 APR.

Wow 0.00039 is even Lower than tier 1 quote they give me…

Good idea, heading to another dealership!

No they cannot play with numbers on the score or approval or they get sued. The finance manager should also show you standard worksheet for different tier MF. Not just some salesman writing numbers on a post it note. I remember when i was in tier 2, the difference for each tier is notmally .001 or higher which is anywhere between additional $60-100+ monthly on a $40k+ car.

You should probably look for a different brand with low MF for tier 1. 0.00175 is really not that good to begin with on tier 1.

This is going to be completely vehicle dependent. Based on the tier 2 MF you posted, you’re on a Wrangler. If you’re shopping for a Wrangler it is difficult to draw any parallels between the MF here and what you would see on a Chrysler Capital lease on a ‘commodity’ vehicle like a Compass, Grand Cherokee, or even Giulia. The Wrangler is a standard rate lease through all lease sources. The initial .00175 quote was likely through US Bank which is also the most difficult leasing as far as credit requirements.

My guess is that US Bank declined the lease, thus necessitating the tier 2 Chrysler Capital approval that they have secured on your behalf.

Chrysler Capital’s tier 1 MF for a Wrangler is .00208, and tier 2 is .00274 – so you are being offered their buy rate if indeed the approval is a tier 2 approval through Chrysler Capital.

We don’t have the exact numbers on which to judge the lease, but the dealer has likely been 100% truthful based on the details provided.

Yea, 0.00175 is not a good rate, but for a wrangler looks like it is the best offer they have;(

Thanks! This explained why my credit got pulled twice by Chrysler Capital and Us Bank within two days.

We found a dealership, they agreed on 0.00175 MF and leased the car to us even Chrysler Capital’s decision is Tier 2. They said they will negotiate with Chrysler Capital, don’t know what trick they are playing…

Went with my mom to get a car this weekend at Nissan. The lease sheet said .00071 MF rate (1.7%) and it had Tier 3 on the paper. I’m thinking we can ask for a lower rate when she gets to finance. She should qualify for Tier 1 with 720+ Credit score.

Every lenders is using an auto decisioning scorecard as a first pass to filter the easy credit decisioning customers. The numbers I have seen from various lenders are that around 40-60% of all credit apps are handled this way. About 70% of those are acceptances and 30% are declines.

With captives, there is often times a relationship between the finance manager at the dealership and the credit analysts. Credit decisioning has a gray area where the criteria between tiers allows for some interpretation. This dealer may have a history of his customers performing well (measured in 30/60/90 day delinquency, charge off rates, etc) and can use that to sometimes get customers that are in that gray area bumped to the higher tier.

Non captive lessors (US Bank, Ally and Credit Unions) tend to be more firm with the paper they buy. Their risk appetite is much lower which is why the dealer wasn’t trying to finagle any favors from the US Bank credit analysts.

What zip code are you in?

Thanks RVguy! I am in 98004

The likely end result is that the did the lease through Chrysler Capital at a lower selling price just to make the payment a wash versus what it would have been with US Bank. Never know what someone might do if they need a car deal.

Exactly, I was told they discounted the selling price to match the monthly payment

In this case, the Wrangler JL can easily got 13% off msrp…