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Need Help Will I Be Approved or Not

New Member

Need Help Will I Be Approved or Not

Currently thinking about assuming the lease on an 2015 BMW 3 Series Gran Turismo. The payment is at $395.16 a month and the car has an original MSRP or $58k. From what I've heard  BMW pulls Experian. Chase says my Experian score is at 670 with 100% percent payment history, %35 percent credit utilization, length of credit (25 months), 5 credit inquiries, and 7 open accounts. Disover gave me an Experian score of 668 , 8 open accounts, 4 years length of credit, 2 inquiries, 32 percent utilization and 0 missed payments. It is worth noting that I've never missed an payment in my life but, but i do have an unpaid medical bill a few years back (3 or 4 year ago I think and only shows up on Experian). I've had an previous $9k car I financed at about $350 a month. It was a 2 year loan, i made 18 payments and then paid the rest cash and closed the account. I then proceded to finance an 2014 Toyota Camry for 5 year at 0 percent for $350 a month in 2014 (needed a cosigner). I have about $9800/$19500 left but, will be giving this car to a family member (car is staying in my name) . So I now need another car. I make $88,000 cash a year. I live with my parents so I don't have any bills. My Equifax score is at 707 and my TransUnion is at 712. I guess I can buy the auto enhanced scores, they'll be higher right? I have multiple credit card debt ($4000/$11600) , auto loan ($9800), and student loans ($21000, still a student). What are my chances, don't feel like wasting money and time and pulling hard pulls to get denied. Will I get accepted or denied, and explain why. Thanks 

9 REPLIES
Valued Contributor

Re: Need Help Will I Be Approved or Not

You will get approved.  BMWFS will likely put you at the preffered tier. They only do Experian auto, anything over 670 is preffered they finance all they way down to the low 600's upper 500's.  I am on my second BMW, beware that once you start driving a BMW you get spoiled for just about anything else.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Valued Contributor

Re: Need Help Will I Be Approved or Not

Also, if I were you I would get prequalifed through a good credit union, they will likely beat the interest rate that BMWFS will offer. 

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
New Member

Re: Need Help Will I Be Approved or Not

Thanks for the reply. I know soo much and yet, I don't know anything haha. I'm assuming a lease so why would there be an interest rate? Also, my Experian auto score is proabably a lot higher right? I've been employed 8 months and am paid cash, will they ask for income verification (I can have them call the owner of the business I work at, or I guess I could ask for a check). 

New Member

Re: Need Help Will I Be Approved or Not

Thanks for the reply. I know soo much and yet, I don't know anything haha. I'm assuming a lease so why would there be an interest rate? Also, my Experian auto score is proabably a lot higher right? I've been employed 8 months and am paid cash, will they ask for income verification (I can have them call the owner of the business I work at, or I guess I could ask for a check).
Sorry posted this as a regular comment first not a respond comment, new member Smiley Happy
Valued Contributor

Re: Need Help Will I Be Approved or Not


wkalout wrote:

Thanks for the reply. I know soo much and yet, I don't know anything haha. I'm assuming a lease so why would there be an interest rate? Also, my Experian auto score is proabably a lot higher right? I've been employed 8 months and am paid cash, will they ask for income verification (I can have them call the owner of the business I work at, or I guess I could ask for a check). 


I assume because its a 2015 its used, if so a lease is out.  There are some used car leases but not many and BMW doesn't do them.  Your Experian auto is probably higher but FICO scores don't always follow logic so you don't really know until you know.  What I can tell you is that its not likely far off unless you have auto lates.  Income verification varies but with your scores I would guess that it won't be required.  It tends to only be required when scores are lower 600's or less.   Lease interest rates are generally about the same as your rates for a good loan but payments on leased cars are less because your only financing a portion of the car.  If you decide to lease a car I would read up on all of the details of leases because they are not as straight forward as a regular purchase.  

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Established Contributor

Re: Need Help Will I Be Approved or Not


workingfor850 wrote:

You will get approved.  BMWFS will likely put you at the preffered tier. They only do Experian auto, anything over 670 is preffered they finance all they way down to the low 600's upper 500's.  I am on my second BMW, beware that once you start driving a BMW you get spoiled for just about anything else.


OP actually shouldn't be subject to tiered pricing on a lease transfer - assuming a lease means exactly the same terms that applied to the original lesee will apply to the new lessee, right down to the exact same payment.  So it's really just a yes/no question as to whether BMW will determine them likely to default or not.

New Member

Re: Need Help Will I Be Approved or Not

I'm aware of the aspects and technical aspects of leasing (MF, residual, etc). Yeah I'm transferring a lease from someone which means I'tll be the exact same terms, price, etc. When the interest rate was mentioned I got confused.
Established Contributor

Re: Need Help Will I Be Approved or Not


wkalout wrote:
I'm aware of the aspects and technical aspects of leasing (MF, residual, etc). Yeah I'm transferring a lease from someone which means I'tll be the exact same terms, price, etc. When the interest rate was mentioned I got confused.

Technically there is an interest rate involved in a lease (it's called the 'rate factor'), however since that's already been set for the lease you're assuming it's a non-issue for your situation

 

That said, if your current credit situation doesn't qualify for the rate enjoyed by the previous lessee, that might affect approval chances

Valued Contributor

Re: Need Help Will I Be Approved or Not

Sorry OP, read right past the lease transfer part.  Multiply the money factor by 2400 and that is the interest rate.  Make sure you take a close look at the lease terms and inspect the car for any damage so you don't get stuck with any costs for damage. BMW is pretty loose, the current leasee should have a kit that has a template that determines  if any dings would result in a cost.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698