topic Lease approval odds in Auto Loans

Lease approval odds

Anonymous — Sun, 24 Jan 2021 23:00:09 GMT

My Chevy lease is ending in 3 weeks. I made my last payment to GM financial and my credit score dropped. This was my first time leasing and didn't realize it would go down as much as it did. What are my odds of getting a decent approval. Do I have a better chance staying with GM ? My income is about $80k My Experian score is now 640 and my fico auto 8 is 644.

Re: Lease approval odds

lhcole77 — Mon, 25 Jan 2021 03:32:09 GMT

@Anonymous wrote:
My Chevy lease is ending in 3 weeks. I made my last payment to GM financial and my credit score dropped. This was my first time leasing and didn't realize it would go down as much as it did. What are my odds of getting a decent approval. Do I have a better chance staying with GM ? My income is about $80k My Experian score is now 640 and my fico auto 8 is 644.

Sorry to hear about that drop, @Anonymous . Was that the only open installment account on your reports? If so, once it closed, you lost out on the points associated with having an open installment tradeline AND one that was more than 80% paid off.

What were your scores when you got this lease? And are you wanting to stick with GM? Or are you open to other brands?

Here's some info from GM's website:

https://www.gmfinancial.com/en-us/financial-resources/articles/credit-score-range.html

Re: Lease approval odds

Anonymous — Mon, 25 Jan 2021 14:01:03 GMT

My score was at 660. Not great but still better than what it is now. I have a mortgage , student loans , and some credit cards.I went to 2 Chevy dealers in beginning of Dec to see my options. One didn't seem interested because my lease wasn't ending until February. The other said they would roll in my my 2 payments but was increasing the monthly payment. I didn't really want to make the 2 payments along with fees a few weeks before Christmas. I will stay with GM if that's my best option.

Re: Lease approval odds

lhcole77 — Tue, 26 Jan 2021 06:11:37 GMT

@Anonymous I have only leased with VW and the second time I did not feel they gave me a better deal even as a returning customer to the same dealership.

But I have read other posts on here where returning customers who leased again did see some love from the dealer even if their scores were on the lower end.

I would definitely reach out to GM if they are who you want to be with and see what kind of deals they offer.

Here are some examples I have read with other brands. I don't have experience leasing with a 640 score, but judging by this info I've heard from others and read online, a 640 is doable, though you'll be paying more.

Toyota T1+ is 720+ and Tier 1 is 690-719. With a 640 score right now, you'd probably fall into Tier 4 (630-649). So your MF (money factor aka finance charge of leasing vehicle) will be higher.

Honda "Super Preferred" is 710+ and you'd fall in "Standard" with a range of 610-659. Again, higher MF, but still doable.

VW Tier 1+ is 730 or 740+ (varying data on this, but in 2015 for me it was 720+ and in 2018 it was 730+). A 640 with them is a Tier 5.

Re: Lease approval odds

Anonymous — Tue, 26 Jan 2021 14:10:05 GMT

Thank you. I am going to reach out to a GM dealer and see what they say.