qualify

HOW BAD CREDIT WORKS WITH AN AUTO LEASE



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alright let's take a vote whoever thinks

that just like in high school when

they're teaching you about blood alcohol

content after how many beers you have

your blood alcohol content goes up that

in college they should teach you when

your credit score drops

what sort of APR you'd qualify for it

it's got my vote actually I'm gonna

mention this next time Suffolk

University calls me up asking for an

alumni donation like where the hell were

you got anyway guys I'm not some white

guy that's had stellar credit ever since

he was like 14 years old it's not even

like like dude I'm Armenian alright

we'll always have bad credit even with

like an 800 score like I a n or yn will

always set off a red flag with Experian

okay but yeah but on a serious note like

I have been there when I was working at

BMW they had to make like four different

phone calls to finally get my

application approved so guys I feel you

if your credit score is anything like

mine was back in the day which was like

I don't know seven years ago I got you I

know exactly what you're going through

and I'm here to try and break down for

you exactly what your bad credit score

will do on a car lease and what's the

best way like what's the best workaround

around this so follow me so the tough

ones

Honda and BMW super super tough Toyota

and Mercedes and kind of mild I would

say Chrysler Jeep

maybe Hyundai it's getting a little bit

easier easiest Volkswagen Nissan and

Chevy and what do I mean by all this

besides actually having bad credit and

falling under categories for which

you're APR is gonna look like they also

have some stringent guidelines as to how

they're gonna approve you as in they

don't just look at your credit score but

they look at your overall profile a lot

harder they look into delinquent car

payments or you've had a repossession

they'll automatically talk

not the application however Volkswagen

Nissan Chevy they're a little bit easier

on you they're sort of like that cool

uncle if you will of the car back of the

car brands to try and get you approved

on a car lease however they're still

gonna charge you here's how much they're

gonna charge you though so before I dive

right in

into how much extra they're gonna charge

you there's some important things that I

need to tell you first on a car lease

that you've got to know as a primer

before any of the stuff that I tell you

gets explained on top for those of you

who don't know me my name is Ari

Jeunesse Ian and I run a car buying

service called danta boston automotive

consulting we're New England's premier

car brokerage and new car buying service

I make these videos for free to help new

car buyers such as yourself make more

informed decisions and I try to be a

little bit funny in these videos so that

you can chuckle a little bit all this

car stuff probably hurts people's heads

diving right in any car lease that you

do for the most part is being done under

the manufacturers big as in Chevrolet

has GM Financial Services Nissan has

Nissan Motor acceptance corporation

mercedes-benz has mercedes-benz

Financial Services and so on and so

forth there are some exceptions to this

rule especially with Chrysler a lot of

the leases that they do may actually go

with third-party banks that's partially

why they're one of the easier ones to

get approved on however for the most

part when you're going in and buying a

car it's not the same as going in and

leasing a car with buying a car you have

the option to shop around the APR or

even bring in your own if you've got a

special offer from your bank or credit

union that's helping you out however on

an auto lease depending on what brand

you go with you may be forced into the

rate that they're giving you for people

with perfect credit they always start

off as the Tier one money factor which

is basically the best APR that they

offer for people with perfect credit now

money factor on a lease is the APR on

your lease so those people with tier 1

credit basically anything above a 720

fight go score not Credit Karma

our qualifying for Tier one they

basically have like a scale usually

subtracting in increments of 20 from

your credit score to give you the

equivalent APR or money factor that

they're going to be adding or increasing

the base APR or money factor by so

typically anybody between a six hundred

and eighty to 720 credit score is gonna

fall within 1% of whatever the lowest

available money factor or APRs so let's

say the lowest APR our money factor

that's available on a Volkswagen Jetta

lease is say 1% APR so now let's say you

dip down instead of being out of 720

you're now at a 690 now we're talking

about 2% interest you're at a 670 now

we're talking about 2.75 and then things

start getting really really out of

control almost like you're getting a

little bit too drunk really really

starting to spiral out of control and

your gym teacher suddenly giving you

advice about what to do and who to call

sorry and now they're starting to double

up on the interest rate as we're going

down you're pretty much in the danger

zone of what the manufacturer is bank is

gonna charge you on top of the standard

interest rate if we've got our 1% as the

lowest APR that's available a 650 credit

score is pretty much gonna add 4% APR on

top of that 1 percent APR so say for

example if we were to take the actual

language that's gonna be used if we're

talking about a point zero zero zero

five money factor now we have to add

point zero zero one six five to the

original amount which makes it point

zero zero one seven zero so now that 1%

became 5% say your credit score is

actually a 625 now we're adding about

five point seven five percent interest

to that original 1% say you're at 600

now we're adding seven point two five

percent APR to the original 1% guys this

is pretty much rough math that I'm

dealing with Volkswagen Nissan Chevy

they all have their very very specific

money factor additions that they have to

have it as a chart however they usually

fall into this cat

Gouri after dealing with these scenarios

I pretty much know it like the back of

my head that check though like the back

of my hand so guys I hope that this

video helped you in trying to understand

exactly how your credit score affects a

car lease

I know financing a car is more easily

understandable because factoring that

your bank can either give you an

aggressive APR or you're a part of a

credit union that that's offering you an

aggressive APR however in this world of

leasing everything is phrased

differently and there's no real

transparency I hope that this video shed

some light and gave you some

clarification as to what you're trying

to accomplish if you found this

information useful guys and you want to

see more real-world new car negotiation

tips please consider subscribing thank

you so so much for watching guys and

we'll see you next time