I've been working hard on my credit for the past year- came from mid 500's to high 600's in 12 months or so.
looking into leasing a BMW (my first lease ever) Current auto 8 scores are below:
I applied online via Dealer Website. Was approved pretty quickly for Tier 1 Lease 36 month/10K miles year. BMW X1 xdrive28i
I live 8 miles from my job and average 7500 miles a year so 10k miles/year is perfect.
I only got alerts from Transunion and Equifax for credit pulls. Picking up vehicle tomorrow!
FICO 8: 681 (EXP), 676 (TU), 676 (EQ)
FICO Auto 8: 712 (EXP) 697 (TU), 703 (EQ)
income 78K/year (7 years with company)
DTI ~11% (13K credit card debt, 70K student loan debt)
Based on 20 years with BMWFS, I can say that your score looks good, income good, and car you are leasing is reasonable.
You should be good but the final rate is dependent on what the dealer wants to roll you.
Remember, the dealer can pad the MF on top what BMWFS quotes.
To lower the MF, you can also put up cash to buy down the MF (multiple security deposits) and get that money back at the end.
Your relationship with the dealer, sales manager, and how hungry they are for the sale would determine what you get.
Sometimes I have gotten very lucky with a base MF and $10K discount on an outgoing model.
Currently, I am about to end financing with my BMW 528 that has been a dream.
After financing it, I don't think I will be going back to BMW for another lease - although the 3 year new car leases were fun....
@Boston_lck @Awesome congrats on your new car!! Can I assume your in Boston? I am as well so was curious which bmw dealer you went to. Our scores are very similar- personal question but any lates on your report from 12+ months? That's the thing I'm most worried about! It would be awesome if I could get tier 1!!
@4sallypat thanks for the reply and insight! Hoping I have no issues! I did actually mention the msd to the manager and he downplayed the benefits of it. I'm pretty ok with the monthly payment so I think I'll only put down msd if I don't get tier 1. Can't believe how much I didn't know about leasing. I've always financed!
It's been awhile since I leased a BMW, but you should check what is the base MF granted by BMWFS.
Last time I leased from BMWFS, the MF was 0.00125.
I think recently I checked and it was 0.00186 ?
The dealer has some pull with BMWFS - they can help buy down the rate if they wanted to especially if you are teetering from Tier 2 to Tier 1.
I remember a BMW dealer doing that for me on an outgoing X5 diesel and I had a score in the high 600s...
Ever since that time, I had returned to the same salesperson (at different dealerships) for 2 more leases and he went to bat for me and got me the best terms.....
Eventually he got promoted to sales director and I got my most recent BMW from him on a finance ($0 down, 0.9% APR)....
Remember, the MF can be padded by the dealer as well - BMW dealerships can mark up the MF by up to .0004.
Know your lease numbers, Auto FICO score and don't put a down on a lease as you may end up losing it if you total it or gets stolen.
Only put down your money for the multiple security deposits to buy down the MF.
Double check to make sure they are not putting your money into a down....
@Kp629 I went to Herb Chambers on Comm Ave -- everyone I dealt with from start to finish was great and would highly recommend all of them! Most recent late for me was 13 months ago for a credit card. I wasn't as nervous about the credit card late. I had late car payments from just shy of 7 years ago when I was finishing grad school. All of them roll off this year but still show up on two of my credit reports so that made me nervous. Finance manager at Herb Chambers said that they use Fico Auto 8 and tier 1 was 700+ but it did sound like if you are within range they will bump you to the next tier. I also don't think they checked POI. I didn't provide any documentation for income and listed both salaried income and 1099 income so I was prepared for them to ask for documentation for 1099 income.
@Boston_lck awesome good to know- I actually did inquire with them as well but the BMW in Peabody ended up having a manager demo car that was a better deal for me since I have negative equity on my current vehicle. Just trying to get rid of it. I submitted my app yesterday via email to the sales manager so waiting to hear back this morning!
@Kp629 Totally get it! I was trading in a car I was financing, only had about 7 payments left. I was nervous they were going to undervalue the vehicle since it had visible damage, but they didn't. I think with the pandemic a lot of dealerships are looking to make sales right now, so if your credit is in good shape they seem to be more inclined to work with you. Good luck!