Bmw financial loan app results

[Loquat]

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@bigpoppa09 wrote:

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@micvite wrote:

Finally pulled the trigger on a 22 m5c, about 160k all in being financed, instant denial based off of a TU pull (my lowest score) awaiting POI and also no other comparable trade lines in the past. (30k max balance on auto loans before)

Just submitted my POI, waiting to see if they counter and ask for more money down (only put 5k down)

Can I ask them to pull EX, would it make any difference? Has anyone encountered a similar situation with bmw and what was the result? I'll update tomorrow with some concrete DP for all that are interested.

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I would be shocked if this gets overturned you said your higest reporting auto loan was 30K. You don't have comparable auto loan experience with these amounts. Going with a different bank will not make much of a difference. Look at it like this in there eyes you are trying to go from a Camry to a Lamborghini. You just aimed to high with this car choice.

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You'd be shocked but banks don't care about any of that stuff.  It's all about mitigating risk, nothing more, nothing less.  If the OP can reduce or eliminate their concern by way of more money down then that'll be all they need to seal this deal.

Most consumers thinks there's a lot "thinking" that goes into decisions like these...but it just isn't so.  Every approval or denial will have ABSOLUTELY NOTHING to do with the year, make, or model.  It'll be about your credit, income, and satisfying their risk algorithm.  Thankfully for those with less than stellar credit or those who have big taste and high income, most can satisfy the risk part with either more money down, a cosigner, etc.

Please don't think there is someone in a backroom starring at your application and pondering if his job will exist should you default.  That's just not the way it works.  

As I've mentioned before, in my prior career I was an F&I managers of over a decade and I promise you, get me enough money or a cosigner and I could get most deals hung without little effort. 

[micvite]

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@Loquat wrote:

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@bigpoppa09 wrote:

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@micvite wrote:

Finally pulled the trigger on a 22 m5c, about 160k all in being financed, instant denial based off of a TU pull (my lowest score) awaiting POI and also no other comparable trade lines in the past. (30k max balance on auto loans before)

Just submitted my POI, waiting to see if they counter and ask for more money down (only put 5k down)

Can I ask them to pull EX, would it make any difference? Has anyone encountered a similar situation with bmw and what was the result? I'll update tomorrow with some concrete DP for all that are interested.

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I would be shocked if this gets overturned you said your higest reporting auto loan was 30K. You don't have comparable auto loan experience with these amounts. Going with a different bank will not make much of a difference. Look at it like this in there eyes you are trying to go from a Camry to a Lamborghini. You just aimed to high with this car choice.

---

You'd be shocked but banks don't care about any of that stuff.  It's all about mitigating risk, nothing more, nothing less.  If the OP can reduce or eliminate their concern by way of more money down then that'll be all they need to seal this deal.

Most consumers thinks there's a lot "thinking" that goes into decisions like these...but it just isn't so.  Every approval or denial will have ABSOLUTELY NOTHING to do with the year, make, or model.  It'll be about your credit, income, and satisfying their risk algorithm.  Thankfully for those with less than stellar credit or those who have big taste and high income, most can satisfy the risk part with either more money down, a cosigner, etc.

Please don't think there is someone in a backroom starring at your application and pondering if his job will exist should you default.  That's just not the way it works.  

As I've mentioned before, in my prior career I was an F&I managers of over a decade and I promise you, get me enough money or a cosigner and I could get most deals hung without little effort. 

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Let me ask you then, would my wife as a cosigner do anything considering she only has say 30k a year income and no auto history just a few cc? Her scores are about 30-40 points higher than me though for fico8 at least. Not sure about auto scores. 

And yeah it's just a slider basically slide the down-payment up risk goes down or at least that's what the bank thinks, basically if I default on the loan they want to at least be able to cover repo costs and depreciation right?😅

[Loquat]

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@micvite wrote:

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@Loquat wrote:

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@bigpoppa09 wrote:

---

@micvite wrote:

Finally pulled the trigger on a 22 m5c, about 160k all in being financed, instant denial based off of a TU pull (my lowest score) awaiting POI and also no other comparable trade lines in the past. (30k max balance on auto loans before)

Just submitted my POI, waiting to see if they counter and ask for more money down (only put 5k down)

Can I ask them to pull EX, would it make any difference? Has anyone encountered a similar situation with bmw and what was the result? I'll update tomorrow with some concrete DP for all that are interested.

---

I would be shocked if this gets overturned you said your higest reporting auto loan was 30K. You don't have comparable auto loan experience with these amounts. Going with a different bank will not make much of a difference. Look at it like this in there eyes you are trying to go from a Camry to a Lamborghini. You just aimed to high with this car choice.

---

You'd be shocked but banks don't care about any of that stuff.  It's all about mitigating risk, nothing more, nothing less.  If the OP can reduce or eliminate their concern by way of more money down then that'll be all they need to seal this deal.

Most consumers thinks there's a lot "thinking" that goes into decisions like these...but it just isn't so.  Every approval or denial will have ABSOLUTELY NOTHING to do with the year, make, or model.  It'll be about your credit, income, and satisfying their risk algorithm.  Thankfully for those with less than stellar credit or those who have big taste and high income, most can satisfy the risk part with either more money down, a cosigner, etc.

Please don't think there is someone in a backroom starring at your application and pondering if his job will exist should you default.  That's just not the way it works.  

As I've mentioned before, in my prior career I was an F&I managers of over a decade and I promise you, get me enough money or a cosigner and I could get most deals hung without little effort. 

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Let me ask you then, would my wife as a cosigner do anything considering she only has say 30k a year income and no auto history just a few cc? Her scores are about 30-40 points higher than me though for fico8 at least. Not sure about auto scores. 

And yeah it's just a slider basically slide the down-payment up risk goes down or at least that's what the bank thinks, basically if I default on the loan they want to at least be able to cover repo costs and depreciation right?😅

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@micvite Your wife being on as a cosigner does indeed help.  It actually helps a lot despite her lower income.  Again, it's all about mitigating risk.  And having your wife who has decent credit just gives the lender an additional person to go after and sue/garnish in the event of default...which in turn mitigates risk even more.  So yes, having your wife will definitely help. 

[micvite]

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@Loquat wrote:

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@micvite wrote:

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@Loquat wrote:

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@bigpoppa09 wrote:

---

@micvite wrote:

Finally pulled the trigger on a 22 m5c, about 160k all in being financed, instant denial based off of a TU pull (my lowest score) awaiting POI and also no other comparable trade lines in the past. (30k max balance on auto loans before)

Just submitted my POI, waiting to see if they counter and ask for more money down (only put 5k down)

Can I ask them to pull EX, would it make any difference? Has anyone encountered a similar situation with bmw and what was the result? I'll update tomorrow with some concrete DP for all that are interested.

---

I would be shocked if this gets overturned you said your higest reporting auto loan was 30K. You don't have comparable auto loan experience with these amounts. Going with a different bank will not make much of a difference. Look at it like this in there eyes you are trying to go from a Camry to a Lamborghini. You just aimed to high with this car choice.

---

You'd be shocked but banks don't care about any of that stuff.  It's all about mitigating risk, nothing more, nothing less.  If the OP can reduce or eliminate their concern by way of more money down then that'll be all they need to seal this deal.

Most consumers thinks there's a lot "thinking" that goes into decisions like these...but it just isn't so.  Every approval or denial will have ABSOLUTELY NOTHING to do with the year, make, or model.  It'll be about your credit, income, and satisfying their risk algorithm.  Thankfully for those with less than stellar credit or those who have big taste and high income, most can satisfy the risk part with either more money down, a cosigner, etc.

Please don't think there is someone in a backroom starring at your application and pondering if his job will exist should you default.  That's just not the way it works.  

As I've mentioned before, in my prior career I was an F&I managers of over a decade and I promise you, get me enough money or a cosigner and I could get most deals hung without little effort. 

---

Let me ask you then, would my wife as a cosigner do anything considering she only has say 30k a year income and no auto history just a few cc? Her scores are about 30-40 points higher than me though for fico8 at least. Not sure about auto scores. 

And yeah it's just a slider basically slide the down-payment up risk goes down or at least that's what the bank thinks, basically if I default on the loan they want to at least be able to cover repo costs and depreciation right?😅

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@micvite Your wife being on as a cosigner does indeed help.  It actually helps a lot despite her lower income.  Again, it's all about mitigating risk.  And having your wife who has decent credit just gives the lender an additional person to go after and sue/garnish in the event of default...which in turn mitigates risk even more.  So yes, having your wife will definitely help. 

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Good to know, I'll give them that option as well then. It'll be good to build her scores up too with some auto history. I just didn't think it would do anything because she only has 2 years history and 2 ccs and a store card AAoA is 1 year. Thanks for the advice and will keep everyone updated.

[Anonymous]

With those stats you should be fine. I think it's just a matter of negotiation with BMW financial and the dealer. Try to get a discount on the car (you appear to have a highly optioned M5C, they dealer is making some money here) and put little more money down. This way you mitigate the risk on both ends. 

One question, are you trying to roll over a previous car loan or is the dealer charging you markup? a highly optioned M5C should be around 125k MSRP + taxes. 

[micvite]

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@Anonymous wrote:

With those stats you should be fine. I think it's just a matter of negotiation with BMW financial and the dealer. Try to get a discount on the car (you appear to have a highly optioned M5C, they dealer is making some money here) and put little more money down. This way you mitigate the risk on both ends. 

One question, are you trying to roll over a previous car loan or is the dealer charging you markup? a highly optioned M5C should be around 125k MSRP + taxes. 

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Already got 1k off they said it was the best they could do and most places were selling at or above sticker that I did call. Not rolling anything over, msrp is just 149k plus tax 

[micvite]

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@Anonymous wrote:

Best of luck! Hopefully the F&I manager can get a recon and counter approval from BMW FS. Keep u s updated.

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After adding my wife on and bmw grumbling about the fact that we're still waiting for her greencard lol was able to get approved for a down-payment of 24.5k plus whatever warranty I'm going to get. 

Without my wife they wanted nearly 40k (39 and some change)

Waiting to submit POI for my wife once we figure out where her paystubs are and then we're good to go apparently.... wife didn't help much because she only has 3 cc on her own everything else she's an AU on for my cards. 

[micvite]

So they asked for proof of income, I sent them what I had, now they want bank statements too and I don't really feel comfortable having to give them my full statement is there any way around this or am I going to have to decide whether giving them the bank statements is worth it or not? They only asked for my wife's but we have a joint account and I don't really feel too comfortable giving them access to see where and how I spend my money...

[ridgebackpilot]

I'd suggest finding another lender that is less demanding. Have you tried NFCU or PenFed CU?

I suspect it's not your credit scores and income that has BMW Financial worried; it's your relatively thin file. As you point out, your wife's thin file doesn't really help with that.

The only reason I ever deal with "captive" lenders like BMW Financial is if they can give me a better interest rate on my car loan than other lenders. What did BMW offer you in terms of APR on your loan? Sometimes they can undercut other lenders with subsidized interest rates because they want to sell their cars.

Good luck! I've had two BMW M5s and they're really fun to drive. I'll warn you, however, that my M5s were maintenance hogs; they were in the shop more than on the street! All BMWs suffer from that, but the M5 is a more complex car than most. Once I switched to Tesla, I never looked back at BMW. Teslas are faster and almost maintenance-free!

[micvite]

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@ridgebackpilot wrote:

I'd suggest finding another lender that is less demanding. Have you tried NFCU or PenFed CU?

I suspect it's not your credit scores and income that has BMW Financial worried; it's your relatively thin file. As you point out, your wife's thin file doesn't really help with that.

The only reason I ever deal with "captive" lenders like BMW Financial is if they can give me a better interest rate on my car loan than other lenders. What did BMW offer you in terms of APR on your loan? Sometimes they can undercut other lenders with subsidized interest rates because they want to sell their cars.

Good luck! I've had two BMW M5s and they're really fun to drive. I'll warn you, however, that my M5s were maintenance hogs; they were in the shop more than on the street! All BMWs suffer from that, but the M5 is a more complex car than most. Once I switched to Tesla, I never looked back at BMW. Teslas are faster and almost maintenance-free!

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my last loan was through penfed and they were even more demanding last time i applied.... I'm gonna send in these statements and if they dont wanna finance me then so be it... I'll get a zl1 instead. NFCU and penfed would have me putting down over 70k (they cap at 100k for auto loans unless I'm mistaken) on a depreciating asset... I'm already kinda annoyed at having to put down 25k. I've had m5's before, and I know about the maintenance costs, but it doesn't affect me, first of all I'm getting a 125k mile warranty, and secondly I can get lifetime warranty on any parts I replace through FCPEURO. On top of that labor is free because well... I own a repair shop and can do it all myself My last 2013 m5 didn't have any issues until 110k miles when I needed to replace some rubber hoses that got brittle and a water pump that shat itself. Other than that perfectly reliable doing 0-60 in 2.4 seconds on drag radials and pushing 800 hp to the wheels. 

I'll admit teslas may be faster from a launch, but after that nothing will beat an m5, the tesla up top just feels sluggish, and there's no feeling of excitement after say 60-80 mph like the m5, but to each their own... plus tesla would annoy the crap out of me having to stop 30+min to charge instead of 5 min for gas haha... I drive sometimes thousands of miles in a day so I need something that I can just keep on going with.