Chances of taking over lease on a Mercedes Benz G-Wagon?

[LadyBug002]

Looking to take over a lease on a 2019 Mercedes G-Wagon! I think my chances may be low... but of course NOBODY know until we pull the trigger. But from anyone who leased or financed a huge car.

My credit score is a 738 -

Discover SECURED: $400 - 2 years

Deserve: $300 - 13 months

Credit Union credit card: $400 - 1 year

Cap One: $900 - 17 months

Commenity: $1500 (CLOSED due to lack of activity but I still have a $200 balance that reports every month ) - 19 months old

First Access: $500 - 9 months old

Personal Loan: $2500 - 9 months old

Personal Loan: $700 - Paid off 

Car Loan (2017 Dodge Charger) - $24,000 loan - 16 months old

Bank Of America Authorized User card - $27,000 - 9 years old

Never missed a payment. No baddies.

I am looking to take over a lease on a 2019 Mercedez Benz G-Wagon - $2,170 per month for 30 months. 

Someone I work with is trying to get out of the lease, and has already gotten the go ahead from Mercedez Benz Financial that he could shop for a new leasee and they'll complete  transfer to a qualified applicant. He asked the rep what do they look for.. they didn't really give him any specific details except for what all of them say "Atleast a 640 credit score". Which turns out to be lies. However, 30 months is just 2 years in a half. Which is just a little over $65k for the whole term. 

I however have a solid healthy score but don't know if my credit report itself is mature enough. I make about $10,000 - $13,000 per month with my salary income and my business. Only hang up is I just started my job about 68 days ago. And my business been booming for the last 7 years, almost fell into tremendous debt with the business cause I neglected it due to personal reasons... but it picked back up and is now doing really really well. However, though it's been solid for 7 years. I can probably only show 1 year proof of income! I didn't put the business on paper until 2019. The business is a courier business for a pharmecutical factory, this industry is recession proof and coronavirus proof as well. 

I have $57k in my savings. $9k in my checkings and I make weekly deposits of $500- $1000 into my bank account every week. 

My monthly bills equals out to: $1,800 month. I haven't had a life for years, been pretty much "BUILDING",... but that is coming to an end and ready for some fun. 

I also have no mortgage yet. I'm still living in my duplex that I own... and will be soon turning back into a rental property once I figure out where I'll be living and shopping for a home. 

[sccredit]

There are 2major issues I see.  First is your young profile.  Second is lack of comparable credit.  MBZ is going to look at the total outstanding amount (residual value plus lease payments) for the credit extension.  So if MBZ is trying to figure out if you can pay for a $150k vehicle nothing in your profile shows them that.  IMO that will be the single largest hurdle, even more than the age of your profile.  

[Anonymous]

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(Mod Cut- while we may not agree with everyones choices of how they manage their money etc, we will all be respectful in our responses and how we address each other. Follow our FSR policy on Myfico. It is mandatory. -Jag73) why dont you take the $2000+ per month and invest it in Vanguard/Fidelity/Schwab index funds...at least you'll have something to show in 3 years. 

what do you need a G Class wagon for....seriously and one you don't own, just rent. 

[Brian_Earl_Spilner]

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@Anonymous wrote:

<mod snip>

what do you need a G Class wagon for....seriously and one you don't own, just rent. 

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Most people won't say it because it's walking a fine line of violating our Friendly, Supportive, and Respectful (FSR) rule, here. It's non-negotiable.

[Anonymous]

Agreed with @Brian_Earl_Spilner . The further point is that she has the income to support that payment from what has been laid out in the first post, and it's not anyone's place to judge how OP chooses to spend her money. Point of the post is to see opinions on whether she can get approved or not, not whether one of us feels it's a dumb move. 

In my opinion, @sccredit is correct - the lack of a similar-value loan, which shows M-B that you've been able to handle a high-dollar vehicle loan in the past, will be your biggest challenge to overcome. That being said, the rest of your financials should be ok. You have a young file but strong income and a home that is owned outright, and those may mitigate some of the youthful credit file.

[ridgebackpilot]

Your credit score isn't the problem. As others have pointed out, I see a couple of issues here:

1. Your credit file is relatively young and thin;
2. Mercedes Benz Financial may view your debt-to-income ratio as too high (that is, your income is too low to support such a large lease payment).

Other choices in SUVs may make more sense, from both a financial perspective and auto ratings standpoint. Fortunately, there are lots of other choices out there. Good luck!

[LadyBug002]

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@ridgebackpilot wrote:

Your credit score isn't the problem. As others have pointed out, I see a couple of issues here:

1. Your credit file is relatively young and thin;
2. Mercedes Benz Financial may view your debt-to-income ratio as too high (that is, your income is too low to support such a large lease payment).

Other choices in SUVs may make more sense, from both a financial perspective and auto ratings standpoint. Fortunately, there are lots of other choices out there. Good luck!

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My debt to income ratio is not too high. I make $10k (being the least) every month... the I make 5 times the lease payment and also my monthly bills is just $1,800 

[Harvey26]

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@LadyBug002 wrote:

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@ridgebackpilot wrote:

Your credit score isn't the problem. As others have pointed out, I see a couple of issues here:

1. Your credit file is relatively young and thin;
2. Mercedes Benz Financial may view your debt-to-income ratio as too high (that is, your income is too low to support such a large lease payment).

Other choices in SUVs may make more sense, from both a financial perspective and auto ratings standpoint. Fortunately, there are lots of other choices out there. Good luck!

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My debt to income ratio is not too high. I make $10k (being the least) every month... the I make 5 times the lease payment and also my monthly bills is just $1,800 

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Your DTI with that car payment included is 41% with 10K a month income. Thats pretty high espcially for someone with such a young profile and no comparbales but Stranger things have happened !  the only I can say is give it a go and see what they say worst thing they can say is no. Keep us updated of what happens. 

[sccredit]

I have long tried to avoid giving personal financial advice and speak only to the credit aspect.  If you feel you can afford it, the insurance and maintenance do your thing.  I am still highly doubtful that MBFS will approve the transfer/assumption.  

[LadyBug002]

UPDATE: I WAS APPROVED!!!!

HOWEVER. I decided to not go the "LEASE TRANSFER" route. I went online, built a G-WAGON on MB website, and the MSRP was $132k. I applied for credit on Monday. Got a call from a finance manager/rep same day, and they told me that I was APPROVED but with $27k down, and estimate of $1,600 per month. Much cheaper than the lease transfer. 

I asked the finance officer how in the world did I get approved when I have nothing to match the value of the G-WAGON. Cause I'm not going to lie I just knew I wasn't going to get approved, after what you all told me on here and from what I personally knew. I was preparing to just save up at least half the amount for the G-WAGON. I just wanted to hear it from the horse's mouth. Cause I really want one! The finance officer told me that every credit report and situation is different, no matter how similar or the same they may look. Underwriters have a different perspectative for each situation. She told me that the fact that I had no current loans with the same value as the G-WAGON did not disqualify me. You do not have to currently have a $150k loan in order to be approved for a $150k loan. If that's the case, no one would be able to qualify for homes. She said she worked in a Mercedes Benz dealership just last year and she's seen people come in and trade their $17,000 Ford Fusion in for a $70k BENZ. She's seen people with previous bankruptcies come in and drive off in luxury cars. Large down payments were needed in some cases, while in some cases just 20% was needed and in some cases much less. $27k on a $132k truck is not bad to me...if you don't have $27k then you shouldn't be trying to finance a $132k vehicle. My score was actually higher than I thought... It was 747, and she said that my income was around 7-8 times the car payment, I own my home, I sent over my bank statement that shows I have $57k in my savings, it shows my previous salary with my last position, and it shows direct deposit from my new job which is just 2 months worth. I sent over proof of my business income 11 months worth. Got a call back yesterday, stating that I can move forward.

However, I might not move forward because of the whole coronavirus thing going on... she said that we could make the process contact-less as possible. But I just feel like I better wait until this crap has died down... I won't be able to enjoy it right now anyhow. But to know I was approved is everything.