cancel
Showing results for 
Search instead for 
Did you mean: 

Will I get approved for BMW Financial?***UPDATE***

tag
Jon85
Frequent Contributor

Will I get approved for BMW Financial?***UPDATE***

Hi, everyone!

I'm looking to lease a new car, and would love to lease the 2014 BMW X3. 

 

However, I don't have the greatest credit. My score is about 630 (I know, sucks)... I know I will not approved on my own, since I have no auto loan history.


My question is, with my score (I have 4 revolving CC for the last year, 0% Utilization), do you think I will be approved for a lease with a co-signer who has a 700+ score? The reason why my credit is low is because I defaulted on 5 SLs 4 years ago, but have since rehabbed them. My uncle said he would co-sign for me, because he knows even though I made mistakes with my SLs, I was never late with the auto loan I currently have. 

 

I'm 29, 80K a year, and fresh out of college, I financed a Mercedes, but it wasn't under my name (because the only thing I had on my CR at that time were my SLs, in deferment and no auto loan history ever)--my sister put it strictly under her name, and added me as an authorized driver for insurance.

 

I was never once late on the $600+ payments for the last 5 years, and I only have three months left. Even though my name isn't under that loan, can I use that history as leverage? 

 

Just wondering what my chances were.. and I have about $3,500-$4,000 cash to put down, and wont be trading my current car in. 

 

Thanks in advance for your thoughts...

Message 1 of 17
16 REPLIES 16
Remember0
Valued Contributor

Re: Will I get approved for BMW Financial?

Can't use those payments as leverage.

 

What is your rent/mortgage? Aggregate min. monthly payments on credit cards? Aggregate student loan payments?

 

I have the feeling that you actually can get approved by yourself esp. given its BMW and your down payment (try not to do a dp on a lease, but rather have it categorized as a security deposit. More here on negotiating leases: http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289... )

 

With a cosigner, yes, definitely you'll have no issues. The only thing is it may be an issue if that car you won't trade has a loan in your name...but as I see it this car is NOT in your name, correct?

Message 2 of 17
Jon85
Frequent Contributor

Re: Will I get approved for BMW Financial?

Hi Remember:

 

I actually don't pay rent or mortgage; my family has a two-family house, and I live here upstairs, and they never asked me to pay rent, even though I've tried, haha.

 

My student loan payments a month are $100, they're all consolidated for 25 years.

 

I don't have any credit card payments, I have a Barclay card, Capital One, another Capital One, and Discover It, all zero balance, and the limite are $1,300, $600, $500, and $300. 

 

The current car that I have is not in my name, you are correct. I only have a few months left on that car, and will be paying it all off at once next month. 

 

The reason why I thought I'd need a cosigner is because my credit score is low, never had a auto loan, and because when I applied online at BMW.COM last month, I was denied. 

 

Thank you for your thoughts you--you really think I wouldn't have too big of a problem?

Message 3 of 17
Remember0
Valued Contributor

Re: Will I get approved for BMW Financial?

Yes, I really do think you'll be fine. Go apply at a dealer this time.

 

Negotiate price first though...in your case, don't negotiate MF, but everything else NEEDS to be done. See here for tips: http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

 

When discussing lease approval at the dealership you better mention you have that substantial a dp (preferably security deposit) before he submits...so mention this while filling out the app. A co-signer will help reduce your MF though, so mention that too.

 

I do think BMW would approve even without to be honest. I'd guess 80% chance. But with a co-signer who has a 700+, there's no doubt this will get approved in my opinion (let's say 99%, because I'm not the underwirter).

Message 4 of 17
Jon85
Frequent Contributor

Re: Will I get approved for BMW Financial?

Wow, Remember, thank you so much! You really put my mind at ease.

 

I was just really discouraged by my current credit score and past credit mistakes.. (you did that I'm only at a 630 right!? LOL!)

 

And if I could do it on my own, as opposed to with a co-signer, it would be perfect! Thank you so much again for the tips, and will be reading the links you provided.

 

I'll be headed over to the dealership in the AM and will let you know! 

Message 5 of 17
Remember0
Valued Contributor

Re: Will I get approved for BMW Financial?

Yes, I did get the 630 part lol. Honestly it'll depend on the auto enhanced they pull. If they get ~630 or so, it's a done deal, just lower interest if you get a cosigner. If they pull something in the 500's then you might need a co-signer.

 

By the way, going into the dealership and negotiating is probably a good way to over pay. You really want to try and get price hammered down before mentioning lease or going there. If you need to see the cars, sure, go there and browse. Come home and do online shopping with an alias+new gmail account which you should do anyways since you don't want spam. EDIT: Whoops, relalized I provided the same link to the Guide as before. It's the link 2 posts above OP titled Guide to Financing, Leasing, etc...

 

Oh and if they ask just say the car you drive currently is your sister's and not for trade. Don't mention the arrangement you have with payments...no need.

Message 6 of 17
dhilton
New Visitor

Re: Will I get approved for BMW Financial?

Did you go into dealer and get approved? 

Message 7 of 17
Jon85
Frequent Contributor

Re: Will I get approved for BMW Financial?


@dhilton wrote:

Did you go into dealer and get approved? 


Hi there... I actually haven't yet. I took some time researching what the user Remember told me to read up on and did some of those things.

 

I also wanted to wait until my utilization was updated to below 3%... I'm going in tomorrow. 

Wish me luck!

The good thing is between the time I wrote the original post and now, my EX went from 630 to 665.. so I feel just a little bit more confident since I heard BMW likes to pull EX. 

 

Will keep you updated, thank you for asking!

Message 8 of 17
j_casteel
Valued Contributor

Re: Will I get approved for BMW Financial?

I'm curious if you live at home with your parents and make $80k a year then why not save and just buy something? Pay more on your SL's instead?

Learning from my past and rebuilding..

BK discharged 1/10/17
scores: EQ 659 | TU 630 | EX 659

QS 3.8K | WF 500 | Cabela's 3k | ACU 500 |

Message 9 of 17
Jon85
Frequent Contributor

Re: Will I get approved for BMW Financial?


@j_casteel wrote:
I'm curious if you live at home with your parents and make $80k a year then why not save and just buy something? Pay more on your SL's instead?


Hi! 


Well, because I spent 5 years paying off a $65K car, so I kind of learned the hard way that it's not worth it for me to buy a car, if I want to take the Benz or BMW route. Leasing is a better option for me, because then my payments will only be for 3 years, and I can trade it in for a new car after the term. I know some people think leasing is a waste of money, but it fits my lifestyle.


Also, don't want to pay more on my SLs because with the type of work I'm in, my SLs will be forgiven after a certain amount of time.

Message 10 of 17
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.