topic Re: Will I get approved for BMW Financial? in Auto Loans

Will I get approved for BMW Financial?UPDATE

Jon85 — Thu, 24 Apr 2014 00:25:27 GMT

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...

Re: Will I get approved for BMW Financial?

Remember0 — Sun, 30 Mar 2014 22:39:00 GMT

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/2898720 )

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?

Re: Will I get approved for BMW Financial?

Jon85 — Sun, 30 Mar 2014 22:46:30 GMT

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?

Re: Will I get approved for BMW Financial?

Remember0 — Sun, 30 Mar 2014 22:54:10 GMT

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/2898720

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).

Re: Will I get approved for BMW Financial?

Jon85 — Sun, 30 Mar 2014 23:07:43 GMT

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!

Re: Will I get approved for BMW Financial?

Remember0 — Sun, 30 Mar 2014 23:55:31 GMT

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.

Re: Will I get approved for BMW Financial?

Anonymous — Tue, 08 Apr 2014 20:34:52 GMT

Did you go into dealer and get approved?

Re: Will I get approved for BMW Financial?

Jon85 — Mon, 21 Apr 2014 04:12:52 GMT

@Anonymous 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!

Re: Will I get approved for BMW Financial?

j_casteel — Mon, 21 Apr 2014 03:52:13 GMT

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?

Re: Will I get approved for BMW Financial?

Jon85 — Mon, 21 Apr 2014 03:59:30 GMT

@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.

Re: Will I get approved for BMW Financial?

NotTellinYou — Mon, 21 Apr 2014 22:35:45 GMT

Or you can buy a 3 year old BMW.

Re: Will I get approved for BMW Financial?

Jon85 — Tue, 22 Apr 2014 16:21:08 GMT

@Remember0 wrote:
Yes, I really do think you'll be fine. Go apply at a dealer this time.

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).

Hi Remember!

I just wanted to give you a quick update about my experience--first off, thank you for the help.

So I went to the dealership yesterday, came to a nice term with monthly payment and down payment, and he pulled my credit. I didn't get approved, due to lack of auto loan history

He said he couldn't see my exact score from the analyst, but that it was between 660-685.

I proved my income of 80K plus an additional 15K I get a year that I didn't know I could claim for the loan, so after veryfying that my income was 95K, downpayment of $2,800, and monthly payment of $500, fully loaded 2014 X3.

He said if I get a strong co-signer, I will definitely be approved... just kind of bummed because I wanted to do it on my own.

Re: Will I get approved for BMW Financial?

Remember0 — Tue, 22 Apr 2014 19:49:50 GMT

I'm honestly surprised and sorry to hear that. I didn't think prior auto loan mattered that much...esp. at BMW who is known to be easier for some people?

Re: Will I get approved for BMW Financial?

Jon85 — Tue, 22 Apr 2014 19:54:32 GMT

@Remember0 wrote:
I'm honestly surprised and sorry to hear that. I didn't think prior auto loan mattered that much...esp. at BMW who is known to be easier for some people?

I think may be my SLs neggies from 2 years ago might have been a factor too, even though they've been rehabbed and in good standing since.

He left me a voicemail last night saying that if his manager resubmitted the application, with a 6 or 7K down payment, then he could possibly get them to override it... otherwise, I'd need a strong cosigner.

Sucks! But thank you again for your help.

Re: Will I get approved for BMW Financial?

Remember0 — Tue, 22 Apr 2014 20:30:37 GMT

Yeah, no problems. Sorry it couldn't get done unfortunately w/o the 6 or 7k or the co-signer.

Re: Will I get approved for BMW Financial?

Jon85 — Thu, 24 Apr 2014 00:28:48 GMT

Hi Remember (and anyone else who is interested!)

So, I told you how I wasn't approved a few days ago... well, today, I had the itch to try another BMW dealership near my house that I heard wonderful things about (even though all dealerships go through BMW Financial).

Well, I went, told my salesperson upfront what had happened... and he said let me see what I could do... and came back with his finance manager.

She said "well, the bad news is you don't have any auto loan history, and plus with your student loan lates a few years back, it didn't look too good. But the good news is, I was able to get you approved. The other half of the bad news is the terms and numbers you originally discussed has changed because of the tier you fell into."

She said I was approved, with $3,000 down, $520 a month (lease), if I wanted it.. the discussed thing was $3,000 down and $440 a month, before they ran my credit again.

I asked if they could just go lower with the monthly payment to perhaps $480 (even though I could afford the one they gave me), and she said it's out of her control, it's the bank's terms.

Remember, do you think I could try and drop them lower, or do you think she is being sincere when she says it's out of her control and it's like a "take it or leave it" type thing, since she did get me approved? I don't want to risk playing hardball, if it's not even worth it...

Re: Will I get approved for BMW Financial?

Remember0 — Thu, 24 Apr 2014 02:47:20 GMT

Yeah, I think she is given the feedback you got from the 1st dealership. If they do NOT call you tomorrow with a magical we got it lower, I'll be even more inclined to think they're telling the truth that it's out of their hand for the most part.

That said, the only way I can for sure tell is if you got them to give you these numbers:

1) purchase price of car+doc fee+state taxes (if applicable)+dmv fees+bmw lease acquisition fee = (try to get it broken up, not one figure!)

2) MSRP on Car (on window sticker, so you can see it yourself without asking)=

3) Down payment =

4) MF =

5) Residual =

6) Term of lease =

7) Net capitalized cost of loan =

8) Credit score pulled = (would help, but not mandatory since we can take an educated guess)

Like I said before, my inclination is yes, they are being honest esp. when you got denied elsewhere. I can see how BMW could have put you in a worser tier. IMO what will really be telling (except if you could get the figures above) is if you don't call them tmrw and they call tmrw saying oh we managed to get it lower!

topic Re: Will I get approved for BMW Financial? in Auto Loans

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

Re: Will I get approved for BMW Financial?

Re: Will I get approved for BMW Financial?

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Re: Will I get approved for BMW Financial?

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Re: Will I get approved for BMW Financial?

Will I get approved for BMW Financial?UPDATE