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Valued Member
Posts: 35
Registered: ‎08-11-2014
0

BMW lease chances! help!

Hello All, Looking to get some advice, I am looking to lease a brand new bmw 430xi gran coupe. I want to know of any expeirence anyone has with leasing from bmw and your opinions my fico scores are as follow efx 699 tru 690 & xpn 707. I know the car is ranging from 45-50k. I have some negative equity in my porsche cayenne right now, betweeen 4-7k$  so no more loans for me.  what kind of down payment do you guys think will get the lease sealed from bmw financial's prespective, what are the chances? Please let me know your opinions!!

Valued Member
Posts: 39
Registered: ‎09-07-2015
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Re: BMW lease chances! help!

Bmw only pulls experian and 675 is the top tier score. I financed neg equity into a purchase with them. Not sure how lease works but it would probably jack the payment up quite a bit because you have to pay it off over the term of the lease as opposed to a normal 60 month finance term. Good luck and keep us posted.
Valued Member
Posts: 35
Registered: ‎08-11-2014
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Re: BMW lease chances! help!

hey @Doberninja thanks for your response! Very good to know!! Now with your information given, when you say their top tier is 675 XPN, would that mean thats the lowest they will accept or 675 & up qualifies for the best interest rates offered? and also being that youve purchased from bmw can you be kind enough to tell me more about how your situation going into the purchase was? maybe your current scores at the time, the vehicle you purchased, amount of money down (if any at all)  and what your negative equity was on the vehicle you were trading? also I know the payments will be jacked unfortunately lol Ive come to terms with it....3 years of painful payments to put me on a better track finacially with vehicle purchases for the rest of my life is a bullet im willing to take. life lessons lol. also from your experience and knowledge, what kind of down payment do you think I can get away with  given my situation, I dont want to have to put down thousands and thousands of dollars being that it STILL is a lease!

Established Member
Posts: 35
Registered: ‎09-23-2016
0

Re: BMW lease chances! help!


aa18leo wrote:

hey @Doberninja thanks for your response! Very good to know!! Now with your information given, when you say their top tier is 675 XPN, would that mean thats the lowest they will accept or 675 & up qualifies for the best interest rates offered? and also being that youve purchased from bmw can you be kind enough to tell me more about how your situation going into the purchase was? maybe your current scores at the time, the vehicle you purchased, amount of money down (if any at all)  and what your negative equity was on the vehicle you were trading? also I know the payments will be jacked unfortunately lol Ive come to terms with it....3 years of painful payments to put me on a better track finacially with vehicle purchases for the rest of my life is a bullet im willing to take. life lessons lol. also from your experience and knowledge, what kind of down payment do you think I can get away with  given my situation, I dont want to have to put down thousands and thousands of dollars being that it STILL is a lease!


BMW's tier 0 is 675 or higher so that means you will qualify for their lowest lease rates. You can check the Edmunds forum to see if there are currently any special lease rates this month for the 4 series. BMW goes down to low as 585 for leases and take into every situation, weighing heavily on past auto loans. With that kind of score you would be able to roll negative equity into the lease without a down payment but your payments would be unnecessarily higher. I would only put enough down to cover the negative equity as that would be the smart thing to do. Otherwise, I would never put down on a lease as this can be a waste for example if the car is totalled. You are better off putting down multiple security deposits, which would lower your money factor (Interest rate) and is refundable at the end of the lease. 

BK7 08/2016
Credit One $300 I CFNA $1200 (Survived BK7) I Starting Score 10/2016: TU 597 I EX(LP) 607 I EQ 592 I
Valued Member
Posts: 35
Registered: ‎08-11-2014
0

Re: BMW lease chances! help!


nykos5000 wrote:

 


BMW's tier 0 is 675 or higher so that means you will qualify for their lowest lease rates. You can check the Edmunds forum to see if there are currently any special lease rates this month for the 4 series. BMW goes down to low as 585 for leases and take into every situation, weighing heavily on past auto loans. With that kind of score you would be able to roll negative equity into the lease without a down payment but your payments would be unnecessarily higher. I would only put enough down to cover the negative equity as that would be the smart thing to do. Otherwise, I would never put down on a lease as this can be a waste for example if the car is totalled. You are better off putting down multiple security deposits, which would lower your money factor (Interest rate) and is refundable at the end of the lease. 

 

Thanks for thje response @nykos5000, This is wonderful information!! I will check edmunds now to see! Now this will be my first time leasing, so when you say multiple security deposites, could you further explain what that means and how that works? ( in regards to lowering the money factor and being refundable at the end of the lease) thanks so much buddy I really appreciate the feedback, honestly!

Established Member
Posts: 35
Registered: ‎09-23-2016
0

Re: BMW lease chances! help!

Multiple security deposits are completely refundable. They are essentially loans to the bank in exchange for a lower interest rate and I believe BMW finance lets you put up to seven deposits down. This can lower your MF (interest rate) tremendously and beats a down payment as you would never see a down payment again but BMW will refund you your MSD at the end of the lease or if you lease another BMW you can roll this money into the new lease. 

BK7 08/2016
Credit One $300 I CFNA $1200 (Survived BK7) I Starting Score 10/2016: TU 597 I EX(LP) 607 I EQ 592 I
Valued Member
Posts: 35
Registered: ‎08-11-2014
0

Re: BMW lease chances! help!


nykos5000 wrote:

Multiple security deposits are completely refundable. They are essentially loans to the bank in exchange for a lower interest rate and I believe BMW finance lets you put up to seven deposits down. This can lower your MF (interest rate) tremendously and beats a down payment as you would never see a down payment again but BMW will refund you your MSD at the end of the lease or if you lease another BMW you can roll this money into the new lease. 


so with that being said, how does the dealership differentiate the MSD from an actual down payment? Ive always been under the impression that the security deposit is to hold the vehicle exclusively for a certain period of time, lol your really opening my eyes haha

Established Member
Posts: 35
Registered: ‎09-23-2016
0

Re: BMW lease chances! help!

MSD do not go towards the actual cap costs such as a down payment so essentially a down payment is a form of lowering your monthly payment by advancing a portion of your payment. It's the same as if you were to lease an apt and give the landlord an extra $5k to lower your monthly payments by a few bucks a month. On the other hand, MSD is like giving a loan to the bank in exchange for a lower MF. MSD are different from a holding security deposit. Holding security deposits are for dealerships to hold a vehicle such as for a custom ordered car. MSD deals directly with the bank. 


aa18leo wrote:

nykos5000 wrote:

Multiple security deposits are completely refundable. They are essentially loans to the bank in exchange for a lower interest rate and I believe BMW finance lets you put up to seven deposits down. This can lower your MF (interest rate) tremendously and beats a down payment as you would never see a down payment again but BMW will refund you your MSD at the end of the lease or if you lease another BMW you can roll this money into the new lease. 


so with that being said, how does the dealership differentiate the MSD from an actual down payment? Ive always been under the impression that the security deposit is to hold the vehicle exclusively for a certain period of time, lol your really opening my eyes haha


 

BK7 08/2016
Credit One $300 I CFNA $1200 (Survived BK7) I Starting Score 10/2016: TU 597 I EX(LP) 607 I EQ 592 I
Valued Member
Posts: 35
Registered: ‎08-11-2014
0

Re: BMW lease chances! help!


nykos5000 wrote:

MSD do not go towards the actual cap costs such as a down payment so essentially a down payment is a form of lowering your monthly payment by advancing a portion of your payment. It's the same as if you were to lease an apt and give the landlord an extra $5k to lower your monthly payments by a few bucks a month. On the other hand, MSD is like giving a loan to the bank in exchange for a lower MF. MSD are different from a holding security deposit. Holding security deposits are for dealerships to hold a vehicle such as for a custom ordered car. MSD deals directly with the bank. 



wow awesome!! so basically a MSD wont go towards the monthly payment, but It will go towards the price of the car (MF)in which would automatically effect the monthly payment? or am I confused...because if 675 and up qualifies me for the lowest interest rate possible then MSD wouldnt help much in regards to the interest rate because its already low


 

Established Member
Posts: 35
Registered: ‎09-23-2016
0

Re: BMW lease chances! help!

[ Edited ]

aa18leo wrote:

nykos5000 wrote:

MSD do not go towards the actual cap costs such as a down payment so essentially a down payment is a form of lowering your monthly payment by advancing a portion of your payment. It's the same as if you were to lease an apt and give the landlord an extra $5k to lower your monthly payments by a few bucks a month. On the other hand, MSD is like giving a loan to the bank in exchange for a lower MF. MSD are different from a holding security deposit. Holding security deposits are for dealerships to hold a vehicle such as for a custom ordered car. MSD deals directly with the bank. 



wow awesome!! so basically a MSD wont go towards the monthly payment, but It will go towards the price of the car (MF)in which would automatically effect the monthly payment? or am I confused...because if 675 and up qualifies me for the lowest interest rate possible then MSD wouldnt help much in regards to the interest rate because its already low


 


The MSD will go towards the MF (interest rate) and there is no such a thing as an interest rate being too low Smiley Happy Even qualifying for the lowest rate, leases are never 0% so if the current rate this month for a 4 series is 3%, MSD can lower that down to 1.5%. This would ultimately lower your monthly payment. A down payment would effectively do the same but you would never see your money again but MSD are refundable. 

BK7 08/2016
Credit One $300 I CFNA $1200 (Survived BK7) I Starting Score 10/2016: TU 597 I EX(LP) 607 I EQ 592 I

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