Long term Car Hire

Interest rates can be an important tool when determining how much a vehicle’s monthly payments are. By knowing how they are calculated, this may give you some leverage in negotiating a lower payment. By understanding how interest rates are figured, you will better understand how the interest rates can affect whether a car lease can be negotiated.

Did you know there are four things that can affect your interest rate and may make leasing a vehicle tougher? What key pieces of information does a company need, so you can get the best interest rate on a leased vehicle?

•    Credit – A good credit rating may be between 700 and 800. Why do employees at a car leasing company need to check your credit score? Those who offer car leases want to access if you will be able to make the monthly payments on time or at all. The better the credit rating, you may be able to get a lower monthly lease payment. But how much does paying on time affect your credit score? Paying on time, on regularly scheduled payments, can boost your credit score by several points.

•    Debt to income ratio – How much of your income are you using to pay for overdue hospital bills and other debts? Will it be difficult for you to make the monthly payments still? Those who provide car leases to customers want to be certain no customer is stretched beyond their means and isn’t able to make short-term car lease payments or longer car lease payments. If you have a high debt to income ratio, it may be difficult to secure anything less than a high interest rating.

•    Will you make a down payment? By making a down payment upfront, you lower the chances that you will have higher monthly payment.

•    Long term, is it possible? Did you know by having a choice, employees at a car leasing company may be able to secure a long-term lease on a vehicle? To secure a longer lease, it may mean that some customers will have higher interest rates as a result of getting a long term car lease. This is also why it may make it all the more necessary for a customer to provide their income to debt ratio.

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