Difficulty obtaining financing

[Anonymous]

Credit Score: 810

AAoA: 6 years

# of positive trade lines: 8

# of negative trade lines: 0

Income: 0; Full-time student w/ 55k sign-on bonus (rec'd 4/2014) and 100k annual salary beginning 8/2014, plus 50k-100k annual bonus

Lenght of Employment: 7 years

Previous Loan Experience: Student loans of 50k, all current

Debt-to-Income (DTI): <1%

Year of Car: 2014 BMW X5, $60k

Miles: 0

Purchase/Refinance: Purchase or lease

Requested loan term (XX Months): 60 months

Down payment amount: 5k

Co-borrower/Co-Signer: No

Other:

I recently applied for an auto loan and was denied because 1) I have no currrent income and they will not take into account one-time bonuses or signed offer letters indicating future salary information and 2) I have no installment debt other than credit cards and student loans (I do not have a mortgage and I have never had an auto loan or lease).

According to this particular credit union, I would need to show two months of current income before being considered for a loan. Unfortunately I cannot wait that long....

What are my options???

[Remember0]

Look into captive lenders' graduate programs.

http://www.bmwusa.com/Standard/Content/SalesandPrograms/CollegeGraduateProgram.aspx

You'll have no issues there. IMO just go to the dealer since you have really good credit. Don't accept any rate more than 3.5% ish really.

[Anonymous]

That's what I thought too! When searching for apartments last month, every landlord gave me first priority among other applicants. The problem here seems to be with current income, which I don't have. Dealership and  financial instutitions aren't willing to lend at ANY rate :-/

[Remember0]

The BMW dealership turned you down? Did you explain you had an offer letter in hand, will start work in a month or two, and want to go through the BMWFS' college grad program?

If so, go try another dealer. The one you got is most likely clueless if I say so myself.

[ExplicitElicit]

As Remember0 said, if one dealership turned you down I would just go to the next one. Honestly if I were you I would go to a dealership and get yourself into the financing office, if they ask for paystubs tell them you were not aware you needed them. If they give you problems just tell them you don't want to go all the way back home. if you do you'd have time to change your mind and are thinking of another vehicle. The managers of dealerships have good enough relationships with the lenders they should be able to get around that. Your student loans should populate as installment loans, granted some banks view loans different they should have several that count them as installment loans. Your scores are high enough, if you were in Texas I would finance you through my bank in a heartbeat!

[Anonymous]

Thanks everyone for the input. I will check with BMW on the college graduate program. I was hoping to get a better rate than the 3-4% offered by BMW here in SoCal but I guess I have no other choice unless I get a cosigner (which just seems silly in my opinion).

[Cookie2120987]

What? With a income like that (you have not recieved it yet but you have a letter stating your income) a amazing score you shouldn't have ANY problem. I was told all I need even without check stubs was a letter stating my salary and Chevrolet and BMW would both fiance me.. I guess I COULD see them being a bit scared since you're unemployed now but you could try moving your first payment back? Just a thought. Seems ridiculous to get stuck with a intrest rate higher than what you should have

[Anonymous]

Denied again from another bank! Starting to feel hopeless here...

[Remember0]

Reason for denial? And what bank?

TBH if you start your convo w/ every bank saying I'm unemployed right now but I have an offer, I don't think you're going to be very successful. If you don't give them a reason to (ie mention student or unemployed status), many won't even ask you for income verification. If I were you I'd put that I was employed and list your future employer for the field where it asks Employer.

Have you tried at a different BMW dealer as suggested? Remember: there you want to say you're a student graduating who will start work this summer and you want to participate in BMWFS' grad program.

[Anonymous]

To be honest I really don't want to pay the 3-4% offered by the BMW grad program, and I feel like going in as a "student" is leverage for them to remain firm on pricing, which I am confident I can negotiate quite well. I also believe I should otherwise qualify for loans in the 1-2% range offered by other financial institutions, given my credit history/score and ability to repay.

The most recent denial was Chase and it will be a week before I receive the letter indicating why. I'm sure it's because of the student status. Perhaps I will do as you suggested and indicate I am currently employed, and hope that they don't require current  income verification.