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New Member
Ladybug01
Posts: 2
Registered: ‎12-02-2013

BMW Financial question

[ Edited ]

I AM LOOKING TO PURCHASE A 535 I BMW IN THE NEXT COUPLE OF MONTHS. I APPLIED ONLINE AT BMW FINANCIAL AND WAS APPROVED. I WENT TO THE DEALERSHIP AND THEY PRACTICALLY DID NOT WANT TO CUT A DEAL WITH ME. ACCORDING TO BMW, I HAD TO PURCHASE A VEHICLE FROM THE LOCAL DEALERSHIP OR I WOULD HAVE TO HAVE MY CREDIT RUN AGAIN BY ANOTHER DEALERSHIP. I AM TRYING TO REPAIR MY CREDIT AND DO NOT WANT TO HAVE MY CREDIT RUN AGAIN. THE USED VEHICLE WAS IN LOW 40K, BUT THEY TOLD ME MY PAYMENTS WOULD BE ABOUT $850/MONTH. I DO NOT WANT TO PAY THAT. I LIVE IN MS. ANY ADVICE OR SUGGESTIONS. MY CREDIT SCORE IS ROUGHLY ABOUT 640. THANKS IN ADVANCE.

Moderator
Revelate
Posts: 8,357
Registered: ‎12-30-2011

Re: BMW Financial question

Welcome to the forums!

 

I split out your post from the other thread which was 3 years old into it's own.

 

As to your question, if you're looking to buy a few months from now then they're likely going to have to run your credit again anyway.  I would suggest getting a copy of your reports and seeing what's on it: in a few months you may be able to make non-trivial improvement in your FICO score which would lower the presumed rate and payment as a result.  Check in the Rebuilding Your Credit forum once you have the details and if you're willing to share your profile, people are willing to help you improve your score.

 

Also when you do come closer to pulling the trigger, doing some rate comparision shopping is in your best interest; if you are a member of a credit union that's a great place to start, or if not, may be worthwhile joining one. 

 

Beyond that what rate did you get approved at and what did the auto lender think your score was?

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
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Established Member
MadMoney
Posts: 16
Registered: ‎11-10-2013

Re: BMW Financial question

Congrats on the "hopefully" new BMW car.  If you were approved by BMW Financial you could always refinance 6 months later at a better rate.  I am assuming it is the rate (highO or term (short) that makes your payments that high. Ask for a longer term or lower rate.  However, can you get us an idea of all three credit scores, gross income, any down payment/trade-in, rate & term of loan, and DTI so those of us who want to apply will have an idea what to expect when we apply for a loan.  Also, are there any "local" dealerships besides the one that will not negotiate?  You may be able find a car there that BMW Finance would not pull another credit report. Also, see if BMW Financial could intervene for you with the dealership to get the payments lower.

Established Contributor
sccredit
Posts: 774
Registered: ‎09-14-2012

Re: BMW Financial question

How much are you putting down?  A payment of $850 a month on a car that is $45k-ish + tax, title and license is realistic.  Go over to cars.com and use their loan calculator.  If you want a lower payment you're going to have to come up with a large chunk down.

Mortgage $296k/$310k
Autos Loans $29k
Unsecured Lines $167.2k

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Mega Contributor
Creditaddict
Posts: 18,873
Registered: ‎10-23-2007

Re: BMW Financial question

What rate did they approve you at?

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New Member
Ladybug01
Posts: 2
Registered: ‎12-02-2013

Re: BMW Financial question

Thank you all for the advice. I never got into the rate I was financed for because I was thinking the dealer ship was trying to get over on me or pressure me too much. After doing research, I have found that 850 is a reasonable payment for a vehicle priced at 40K plus. My 60 day period has passed and I will for sure now have to reapply and have my credit run again. My EX score is 650, TU 580. Not sure about Equifax, I do have a judgment on TU. I am a nurse who is trying to repair credit from when I was in nursing school. I guess I have to start somewhere. Again thanks everyone for the responses. 

Established Contributor
sccredit
Posts: 774
Registered: ‎09-14-2012

Re: BMW Financial question


Ladybug01 wrote:

Thank you all for the advice. I never got into the rate I was financed for because I was thinking the dealer ship was trying to get over on me or pressure me too much. After doing research, I have found that 850 is a reasonable payment for a vehicle priced at 40K plus. My 60 day period has passed and I will for sure now have to reapply and have my credit run again. My EX score is 650, TU 580. Not sure about Equifax, I do have a judgment on TU. I am a nurse who is trying to repair credit from when I was in nursing school. I guess I have to start somewhere. Again thanks everyone for the responses. 


Buy a cheaper car (how about a Certified 3 series?) while repairing your credit.  

Mortgage $296k/$310k
Autos Loans $29k
Unsecured Lines $167.2k

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DCU FICO 744

New Contributor
hacsx2
Posts: 58
Registered: ‎12-02-2013

Re: BMW Financial question

Have you consider the BMW Select Loan?

 

It might not sound good to some since you still have to pay final payment.  But it will reduce the monthly payment by a lot.  

I recently bought a 328d with select.  The loan price was $47000 ish at 2.99% it came out to be $550 for 60 months and final payment of $18000.  This is with nothing down.  The price of the car was $48000 discounted to $42000 and $5000 in tax and doc and fees.  

Given this is a new car only.

 

I would recomend getting a new 3 series instead of getting a used 535.  Depending on the year you might have fuel pumps problems and if it is not in warranty then you will have to pay a lot for repairs.  I had a 07 335i before and the water pump broke.  it cost me $1000 to fix.  and this is not fixing at the dealer.

 

So smaller bmw less payment and pay nothing for repair at all for 4years or 50k miles.

EX: 747 (12/27) EQ:716 (11/6) TU: 703 (11/6) CK: 735
CC:
CSP $5000; BOA Rewards: $5000; Citi Platinum: $2600; UNFCU $500; BCP $6000; Wells Fargo reward $10k; Line of credit $10k ; Discover IT $7500; BML$1000; Citi TYP $5000; Chase Freedom $4000
Established Member
MadMoney
Posts: 16
Registered: ‎11-10-2013

Re: BMW Financial question

Congrats on the 328d.  How did you get the car for discounted from $48M to $42m?  That is a great price.

New Contributor
hacsx2
Posts: 58
Registered: ‎12-02-2013

Re: BMW Financial question

I didn't do anything.  The sales person did it for me.  It was the best car buying experience ever.  

The sales person explained to me what the discount were and applied everything he could to lower the price down with out me asking.

I was very surpised at the result.  From what i remember it is MSPR $48000 invoice price $44000 then $500 loyalty + $750 option credit then some more negotiaiting to get the payment to right number but not down by much.  so it turns out to be $42000 ish.

 

EX: 747 (12/27) EQ:716 (11/6) TU: 703 (11/6) CK: 735
CC:
CSP $5000; BOA Rewards: $5000; Citi Platinum: $2600; UNFCU $500; BCP $6000; Wells Fargo reward $10k; Line of credit $10k ; Discover IT $7500; BML$1000; Citi TYP $5000; Chase Freedom $4000

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