Is 709 A Good Credit Score – HOW BAD CREDIT WORKS WITH AN AUTO LEASE
Is 709 A Good Credit Score – Most Popular?
In this video, I discuss what your credit score translates to when calculating a car lease.
Visit SaveOnMyAuto.com to get dealer pricing: http://bit.ly/2XkXs1Q
SUPERMONEY Auto Loan Rates (NO HARD PULL): http://bit.ly/2kK4n6P
Refinance Existing Auto Loan: http://bit.ly/2mc8Cs5
Check your FICO Auto Score 8 (NO HARD PULL): https://fxo.co/7czb
My eCourse for finding invoice price, dealer rebates, lease variables: http://bit.ly/scrape-method
☎️ Book a 1on1 Coaching & Deal Review Call with Ari: 📆 http://goo.gl/eBzbyA
**DISCLAIMER:** This video and description contains affiliate links, which means that if you click on one of the product links, I’ll receive a small commission at no additional cost to you. This helps support the channel and allows me to continue to make videos like this.
Just like an auto loan has an APR, a car lease has a Money Factor. The Money Factor on an auto lease is the same thing as a Interest Rate or APR on an auto loan. The difference is, most auto loans can be shopped around to a wide variety of banks. With most auto leases, with the exception of a few independent lease companies, you are tied into whatever the Manufacturers Bank (ie, Nissan NMAC, VW Credit, GM Financial) states that the Interest Rate or Money Factor is for that auto lease.
Keep in mind the following:
Usually anything below a 650 Credit Score is considered Tier 6-9. This typically adds between 5-8% APR to your standard Money Factor.
For example, if the standard Money Factor available for those with a 720+ Credit Score is 1% APR, your APR or Money Factor will be 5-8% higher.
In leasing, this is what that would actually look like:
Tier One Money Factor: .0005
Tier 6 Money Factor Adder: .00165
Final Money Factor: .00170 or 4% APR
It is usually much higher on Tier 7 or 8, or basically close to a 600 or less credit score.