Do I need good credit to lease a car?

[Clark22222]

Do I need good credit to lease a car?

[padi56]

Originally Posted by Clark22222

Do I need good credit to lease a car?

Why not try and lease a car then you will find out.

[EEpro]

OP, won't the company need to know a bit about your financial situation to determine your repayment ability before handing over the keys.

That's going to be a combination of your debts, your income, the ratio of those after this potential transaction, and your payment history of prior debts.

[330ci]

Considering how predatory the auto industry was to people with low credit scores prior to shortages. I can't imagine the situation has gotten much better these days.

[Tri-Tip]

Originally Posted by Clark22222

Do I need good credit to lease a car?

Not necessarily, but if your credit is not good, you will pay a much higher rate.

[tifosi]

Credit worthiness will determine your interest rate (or moneyfactor in lease terms). If it is poor enough you will be declined.

[Krash]

Originally Posted by Tri-Tip

Not necessarily, but if your credit is not good, you will pay a much higher rate.

^^^^^^^^^
This.

The better your credit score, the better your rates, or you could be declined altogether...

[Mifune]

VW... sign and Drive.

[Pw92676]

Your first post on a watch forum is this? Bizarre

[EEpro]

[beshannon]

Originally Posted by Clark22222

Do I need good credit to lease a car?

Yes

[zengineer]

Originally Posted by beshannon

Yes

That seems so unfair.

Maybe the government should step in.



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[Mifune]

Originally Posted by zengineer

That seems so unfair.

Maybe the government should step in.

it's only a matter of time... which now ties into as Watch forum

[Al1969]

Originally Posted by zengineer

That seems so unfair.

Maybe the government should step in.



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[Bstewart]

If you have to ask this question here, someone else should have full guardianship of your money.

[GB-man]

Originally Posted by zengineer

That seems so unfair.

Maybe the government should step in.



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That’s the only way to assure it’s fair and affordable.

[Bstewart]

Originally Posted by Krash

^^^^^^^^^
This.

The better your credit score, the better your rates, or you could be declined altogether...

Be careful taking interest rate advice from this guy

[Krash]

Originally Posted by Bstewart

Be careful taking interest rate advice from this guy

Wait, what? Are you saying I’m wrong? Who are you and what do you do for a living?


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[Bstewart]

Originally Posted by Krash

Wait, what? Are you saying I’m wrong? Who are you and what do you do for a living?


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I was making a joke regarding your misunderstanding of how treasuries work.

[train-time]

Originally Posted by Krash

^^^^^^^^^
This.

The better your credit score, the better your rates, or you could be declined altogether...

Originally Posted by zengineer

That seems so unfair.

Maybe the government should step in.



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This used to be the case as higher credit score candidates were considered "well qualified."

Loan pricing has always been risk based until now, at least with mortgages in the US. Other consumer loans are another story.

The FHFA, Federal Housing Finance Agency, the regulatory agency created to regulate Fannie Mae and Freddie Mac has recently announced changes in Loan Level Pricing Adjustments (LLPA) that shift pricing to favor the poorer scores at the expense of the higher credit scores. These changes go into effect May 1st.

It used to be that candidates with higher credit scores received the best rates and some high scores even didn't get pricing adjustments applied at all. Lower scores candidates had higher LLPA's which translated to higher rates. The FHFA has increased adjustments for the well qualified and in some cases where the candidate had exceptional scores with no adjustments, they now have adjustments, and the lower credit score candidates had their adjustments reduced.

This is one of many things going on behind the scenes with the current regulation of the housing finance industry that most people don't even realize is happening, until it's too late.

[Krash]

Originally Posted by Bstewart

I was making a joke regarding your misunderstanding of how treasuries work.

Oh, okay. I made the mistake of reading something I saw on a Google search and literally interpreted what it said.

It basically said that after 3 months, it reaches maturity and you collect interest at point, and you can sell it at that point too. So that’s where it came from.

I want to do more research on that, because I want a better understanding of they work. I’ve never invested in them before. Just stocks, bonds, mutual funds, ETFs, and I’ve done quite well with those…


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[Maleg]

Originally Posted by train-time

This used to be the case as higher credit score candidates were considered "well qualified."

Loan pricing has always been risk based until now, at least with mortgages in the US. Other consumer loans are another story.

The FHFA, Federal Housing Finance Agency, the regulatory agency created to regulate Fannie Mae and Freddie Mac has recently announced changes in Loan Level Pricing Adjustments (LLPA) that shift pricing to favor the poorer scores at the expense of the higher credit scores. These changes go into effect May 1st.

It used to be that candidates with higher credit scores received the best rates and some high scores even didn't get pricing adjustments applied at all. Lower scores candidates had higher LLPA's which translated to higher rates. The FHFA has increased adjustments for the well qualified and in some cases where the candidate had exceptional scores with no adjustments, they now have adjustments, and the lower credit score candidates had their adjustments reduced.

This is one of many things going on behind the scenes with the current regulation of the housing finance industry that most people don't even realize is happening, until it's too late.

Is this an equitable redistribution?

[crew]

Originally Posted by tifosi

Credit worthiness will determine your interest rate (or moneyfactor in lease terms). If it is poor enough you will be declined.

I know little about leasing so please be gentle!
I’ve heard that term “money factor” in regard to leasing. So is that wording analogous to interest rate?

[brandrea]

Welcome to the forum.

[Bstewart]

Originally Posted by crew

I know little about leasing so please be gentle!
I’ve heard that term “money factor” in regard to leasing. So is that wording analogous to interest rate?

Basically yes

[Bstewart]

Originally Posted by Krash

Oh, okay. I made the mistake of reading something I saw on a Google search and literally interpreted what it said.

It basically said that after 3 months, it reaches maturity and you collect interest at point, and you can sell it at that point too. So that’s where it came from.

I want to do more research on that, because I want a better understanding of they work. I’ve never invested in them before. Just stocks, bonds, mutual funds, ETFs, and I’ve done quite well with those…


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I'm just giving you a hard time. I throw a ball for a living, what do I know.

[Polyesterpig]

Just flash your Rolex. This will probably bypass all credit questions from the lender.

[Wcdhtwn]

Originally Posted by Polyesterpig

Just flash your Rolex. This will probably bypass all credit questions from the lender.

And any hope of negotiating price will go out the window. Never wear an expensive watch to buy a car. Of course if you buying a Porsche, Ferrari, and the like it probably doesn't matter.

[GB-man]

Originally Posted by crew

I know little about leasing so please be gentle!
I’ve heard that term “money factor” in regard to leasing. So is that wording analogous to interest rate?

MF x 2400 = lease interest rate

[Gab27]

Not if you show up wearing a Rolex. Wear your Rolex with pride and the world will bow to you. Even if you have a 300 credit score, they will lease you a Bugatti.