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Epic Contributor
Creditaddict
Posts: 21,724
Registered: ‎10-23-2007
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One More - LOL = BMW Finance

I know i yet again went to look at another "Different" car, I am getting little closer I think but wanted to share.

Went originally to drive used BMW's because they were all $10k-$15k and under 80k miles...

Basically looked at the one BMW and that was just a no - Just came off lease and "not cleaned yet because it is just arriving" I totally get the needs to be cleaned and buffed up once you buy, but once you get to a certain level I just felt like this is a sign of how much they cared about the car in this lease and I had listen to my stomach.

Anyway so chose a 2007 TL Fully Loaded with Nav. and only 25k Miles.

Anyway short story is they pulled 662 as highest and they shopped around (I got 2 calls "She is working hard, Ill be back in touch soon" to finally get the last call, "Are you sitting? She worked SO hard and I can't believe it, she got BMW to take it and they are so conservative, etc. etc.

 

12.9% on 60 Months

He tried to tell me about a couple of those "lots" (buy here pay here type lots) had declined me so getting BMW to take it was like AMAZING... I was like it's fine if you can only get me 12.9 (im not going to say I understand it (if you have seen my other posts you know, I had approval with VW Tier 2, Approval Kia Tier 3, Infiniti Tier 1) so fine bad rate but don't be insulting or stupid to try to tell me these supposed lots that offer finbancing with 20-24% declined me, That just makes you sound dumb!

We ended on friendly note and I said I would call back if anything changed but probably won't work out so thank you for working on this.

 

Side note - I guess I missed the memo becasue back in 2006-2007 my score was in the 640-660 I could not get approved for a lease but they would finance me all day long and most at decent rates... Why has financing become so hard and leasing so easy? What am I missing?

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
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New Contributor
Cellice
Posts: 148
Registered: ‎07-04-2012
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Re: One More - LOL = BMW Finance

The country is in a recession. There is a much larger risk on giving someone a loan for 5/6 years vs giving someone a small loan for 2/3years.

 

Since you are going shopping crazy. I would recommend making one thread and keeping your "stories" limited to that thread. There is not really a reason to make a seperate thread each time to shop a different car. It will make it easier for anyone following WTH you are doing.

Valued Member
blackie1
Posts: 36
Registered: ‎06-26-2012
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Re: One More - LOL = BMW Finance

I can see why you are not getting financed, from reading you rprevious posts you must have bookoo inquiries!!

2fst4u
Frequent Contributor
jd5189
Posts: 470
Registered: ‎08-14-2012
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Re: One More - LOL = BMW Finance

Aside from the whole car fiasco... What you are missing is... USED CARS!!!!!! The amount of used cars available greatly influences financing to buy vs lease rates... 

Back in 2006-2007 credit was flowing like an unstoppable river. Leases were more difficult to get because people wanted new cars ("Bling Bling - I'm making bank there is no way anyone is going to see me driving around a car that is more than 2 years old!") so there became a surplus of used cars. Increasing the number of leases increases the number of used cars down the road and drops the value of used cars. Therefore, manufacturers wanted to put people in new cars with the intent to own. Credit algorithims were much looser as well.

Now, fast forward 6 years (No more bling-bling era :smileysad: ), people are finding the value in used cars more benificial for their financial well-being. Less depreciation, less cost, and cars are more reliable. The quantity of used cars is much lower because of this and in demand, therefore, manufacturers are pushing leasing to create more used cars. Also, credit algorithims have tightened significantly to reduce risk.

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Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Epic Contributor
Creditaddict
Posts: 21,724
Registered: ‎10-23-2007
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Re: One More - LOL = BMW Finance


Cellice wrote:

The country is in a recession. There is a much larger risk on giving someone a loan for 5/6 years vs giving someone a small loan for 2/3years.

 

Since you are going shopping crazy. I would recommend making one thread and keeping your "stories" limited to that thread. There is not really a reason to make a seperate thread each time to shop a different car. It will make it easier for anyone following WTH you are doing.


I guess the only reason I have been opening new posts for each brand or bank is because it can be located in a search if someone is looking for scores getting what percentage of approvals, or BK friendly, etc.

 

other question posted - 

I can see why you are not getting financed, from reading you rprevious posts you must have bookoo inquiries!!

 

Me - I do have a lot of INQ. I had a large number (over 20 I think) when I applied for a lot of my credit back in nov and dec and then again in april may and my scores moved up and down by less than 10 points.

Now Auto Loan shopping when done during a certain time frame are counted as 1 INQ when the system is calculating out score.  I have seen some very different EX scores pull but my TU has pretty consistantly pulled in the 660-690 mostly 660-668.  No one has even mentioned the INQ being any issue.  

Lastly I always thought it would be better to give someone a lease vs purchase because payments are usually lower but in the past I couldn't get leases and Finance was no problem (My Infiniti 2006 QX56 was a lease special at $699 39-48 months, I forget... The finance was 4.9% for 72 months and put my payment at $971. They would not approve the lease!! That's Tier 1 also.

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
New Contributor
Cellice
Posts: 148
Registered: ‎07-04-2012
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Re: One More - LOL = BMW Finance

Your monthly payment is not the primary concern to a lendor. Their primary concern is how much money you will loose if you default on that loan. On a 50K car they loose 50K if you financed but only 10K if you leased. Which one seems less risky to you?

 

Your assumption that all those inquiries only count as 1 is wrong. They only count as 1 for Fico scoring. However, they still show up on your credit portfolio. Therefore, if a bank is looking at yout file and see 22 inquiries you look like a major risk to them. Most of these banks will reject you based on their internal software.

Epic Contributor
Creditaddict
Posts: 21,724
Registered: ‎10-23-2007
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Re: One More - LOL = BMW Finance


Cellice wrote:

Your monthly payment is not the primary concern to a lendor. Their primary concern is how much money you will loose if you default on that loan. On a 50K car they loose 50K if you financed but only 10K if you leased. Which one seems less risky to you?

 

Your assumption that all those inquiries only count as 1 is wrong. They only count as 1 for Fico scoring. However, they still show up on your credit portfolio. Therefore, if a bank is looking at yout file and see 22 inquiries you look like a major risk to them. Most of these banks will reject you based on their internal software.


My statement was not disputing they are on my report.  Further more I further stated that my scores have not change more than 10 points, I have never had an auto bank say WOW you have 25 pulls around town for cars, I mean depending what you are trying to get and what the lot is trying to get I have seen over 7 and sometimes more pulls with 1 dealership!

Credit Cards is a different story but again after so many you are not usually effected in scoring but yes many banks with the auto processing of application will kick it for INQ, some don't as long as your util. and such are down, some will hold it against you till death, others on a manual review with overlook if all is good... it's hard to say at what number the computer says no, and at what number a bank says no because it's VARIED so much and getting a letter that says you have to many INQ happens time and time again with people that only have 1 INQ.  You have to consider the bank auto create letter on denial or denial again after recon. the computer/the person has about 20 choices of statements and it needs or usually will send you 3-4 reasons... so I think denial letters are a complete waste up until when the law passed that banks send us scores... at least when you get a real one not some stupid 0003 out of 1140!!

and one last thing I totally understand what you are saying about loosing $50k vs. $10k but that is oppisite of how it was, that's all I am saying.

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
New Contributor
skyisthelimit
Posts: 227
Registered: ‎06-09-2012
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Re: One More - LOL = BMW Finance

"My Infiniti 2006 QX56 was a lease special at $699 39-48 months, I forget... The finance was 4.9% for 72 months and put my payment at $971. They would not approve the lease!! That's Tier 1 also."

 

You know what you qualify for with your current standings, so either purchase a vehicle; or do not apply for 2 years so everything drops off.  Your score will be 50-100 pnts higher then what it is right now, due to INQ's and age difference.  Well no one ever takes my advice, so just wanted to give it.  GL!

Epic Contributor
Creditaddict
Posts: 21,724
Registered: ‎10-23-2007
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Re: One More - LOL = BMW Finance


skyisthelimit wrote:

"My Infiniti 2006 QX56 was a lease special at $699 39-48 months, I forget... The finance was 4.9% for 72 months and put my payment at $971. They would not approve the lease!! That's Tier 1 also."

 

You know what you qualify for with your current standings, so either purchase a vehicle; or do not apply for 2 years so everything drops off.  Your score will be 50-100 pnts higher then what it is right now, due to INQ's and age difference.  Well no one ever takes my advice, so just wanted to give it.  GL!


Okay either I confused people or you are confusing me!

I am most likely looking to lease now, I stated what is right above based on the conversation that Lease is not way easier then Purchase and whyt hat would be from bank side.  I was showing why I feel newly it makes sense now that I understand it based on the almost $400 less I could have paid as a lease back on this QX56 above.

What is dropping off in 2 years that is making my score 50-100 points higher? (INQ?) My INQ are not going to give me 50 let alone 100.... Now my BK dropping off, my settled Santander/Cap1, those would probably give me that!

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:

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