Definition of a Well-Qualified Buyer
If you’re looking to buy a vehicle, perusing pages and pages of loan and lease offers, you’ve likely come across the terms “competitive lessee” and “well-qualified buyer.” Many offers from OEM dealers are only applicable to such individuals.
Unfortunately, the designation is often left frustratingly vague. So what exactly does it mean to be a well-qualified lessee?
A competitive lessee or well-qualified buyer generally refers to an individual with a Tier 1 credit score. As you can probably deduce, a Tier 1 credit score is a very good credit score. It typically refers to a score of 720 or higher.
However, every bank has their own definition of what a Tier 1 credit level is, so qualifications can vary. Offers aimed at well-qualified buyers are usually offered by a manufacturer’s bank. As such, these stipulations apply to special rate or money factor offers.
Are factors considered besides credit score?
Yes, to determine if you qualify, a bank/dealership will typically take into account not only your credit score, but also other factors such as your credit history, debt-to-income ratio, the price of the car related to your income, and the size of your down payment.
Low/No Credit Auto Loans at Third Coast Auto Group
For those who are not well-qualified in the credit arena, all hope need not be lost. There are many dealerships, including us here at Third Coast Auto Group, that work with individuals of all credit and financial situations. Using our special connections to financers, we believe we can find everyone a loan that will work for them. The goal here at TCAG is to work with customers, not against them, when finding a solution to the obtainment of their new car.
If you’d like to check your qualifications, feel free to apply online using our pre-approval tool.