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Penfed auto approval? BMW M5

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Creditplz
Valued Contributor

Re: Penfed auto approval? BMW M5

Looks like an approval with a large enough down payment.. although I've never financed a car that's more then my salary... I just got a 22' M550, I have a M8 Comp for the weekends. 

 

the bigger question I have is.... every dealer around (and I know plenty) are charging ADM on these M5 Comps... I see plenty here that are MSRP at 113-125 going for $10-15k ADM (additional dealer markup/ market adjustment). 

I can tell you without a LARGE down payment and previous auto paid it won't get done... if they are charging a ADM + tax/title reg fee your looking at wayyyy more then 118k.

 

I considered getting a M5CS a few weeks back but couldn't justify it considering I want a R8 this upcoming summer.

 

best of luck!

Message 11 of 19
Anonymous
Not applicable

Re: Penfed auto approval? BMW M5


@Creditplz wrote:

Looks like an approval with a large enough down payment.. although I've never financed a car that's more then my salary... I just got a 22' M550, I have a M8 Comp for the weekends. 

 

the bigger question I have is.... every dealer around (and I know plenty) are charging ADM on these M5 Comps... I see plenty here that are MSRP at 113-125 going for $10-15k ADM (additional dealer markup/ market adjustment). 

I can tell you without a LARGE down payment and previous auto paid it won't get done... if they are charging a ADM + tax/title reg fee your looking at wayyyy more then 118k.

 

I considered getting a M5CS a few weeks back but couldn't justify it considering I want a R8 this upcoming summer.

 

best of luck!


Thanks a lot! I ordered this M5 back in August 2021. Was originally going to go with a lease considering the rates and buyout at the end since the rates were desirable. That has changed now. I do plan to keep this car for a very long time. I actually got the car under sticker, no ADM. 

 

delivery day is 2 weeks away so I'm weighing all my options. Something I probably should have mentioned earlier is to "test" myself I've been putting away double of what the quoted payment would be to see how it would impact my financially. Wanted to make sure I didn't need to sacrifice anything such as contributing to other savings, retirement, and overall QOL to get this car. 

Message 12 of 19
Gladius
Frequent Contributor

Re: Penfed auto approval? BMW M5


@Anonymous wrote:

@Creditplz wrote:

Looks like an approval with a large enough down payment.. although I've never financed a car that's more then my salary... I just got a 22' M550, I have a M8 Comp for the weekends. 

 

the bigger question I have is.... every dealer around (and I know plenty) are charging ADM on these M5 Comps... I see plenty here that are MSRP at 113-125 going for $10-15k ADM (additional dealer markup/ market adjustment). 

I can tell you without a LARGE down payment and previous auto paid it won't get done... if they are charging a ADM + tax/title reg fee your looking at wayyyy more then 118k.

 

I considered getting a M5CS a few weeks back but couldn't justify it considering I want a R8 this upcoming summer.

 

best of luck!


Thanks a lot! I ordered this M5 back in August 2021. Was originally going to go with a lease considering the rates and buyout at the end since the rates were desirable. That has changed now. I do plan to keep this car for a very long time. I actually got the car under sticker, no ADM. 

 

delivery day is 2 weeks away so I'm weighing all my options. Something I probably should have mentioned earlier is to "test" myself I've been putting away double of what the quoted payment would be to see how it would impact my financially. Wanted to make sure I didn't need to sacrifice anything such as contributing to other savings, retirement, and overall QOL to get this car. 


You are a very smart young man.  Very wise and mature actions.  Post pics of your new ride when it comes in!

Message 13 of 19
Anonymous
Not applicable

Re: Penfed auto approval? BMW M5

 


@Gladius wrote:

@Anonymous wrote:

@Creditplz wrote:

Looks like an approval with a large enough down payment.. although I've never financed a car that's more then my salary... I just got a 22' M550, I have a M8 Comp for the weekends. 

 

the bigger question I have is.... every dealer around (and I know plenty) are charging ADM on these M5 Comps... I see plenty here that are MSRP at 113-125 going for $10-15k ADM (additional dealer markup/ market adjustment). 

I can tell you without a LARGE down payment and previous auto paid it won't get done... if they are charging a ADM + tax/title reg fee your looking at wayyyy more then 118k.

 

I considered getting a M5CS a few weeks back but couldn't justify it considering I want a R8 this upcoming summer.

 

best of luck!


Thanks a lot! I ordered this M5 back in August 2021. Was originally going to go with a lease considering the rates and buyout at the end since the rates were desirable. That has changed now. I do plan to keep this car for a very long time. I actually got the car under sticker, no ADM. 

 

delivery day is 2 weeks away so I'm weighing all my options. Something I probably should have mentioned earlier is to "test" myself I've been putting away double of what the quoted payment would be to see how it would impact my financially. Wanted to make sure I didn't need to sacrifice anything such as contributing to other savings, retirement, and overall QOL to get this car. 


You are a very smart young man.  Very wise and mature actions.  Post pics of your new ride when it comes in!


Thank you, that means a lot. As I stated before I know there are definitely other cars I can get without having to think twice about and the monthly payment would be a lot lower however I also understand in life you need balance. I choose frugality in all other aspects of life because it is what I prefer. I've never been one to be flashy, never cared for jewelry or designer brands you know? But cars.... cars are my one "vice" haha. I will definitely post pics if all things go well. Fingers crossed! 

Message 14 of 19
iced
Valued Contributor

Re: Penfed auto approval? BMW M5


@Anonymous wrote:

Hi All, new to the forums so I am wondering what my odds of approval are for a Penfed Auto Loan. 

 

Age: Mid 20s (I put this in here, not sure if it is relevant)

Income: 105K

Current Credit Score: Experian (720) TransUnion (755) Equifax (754)

DTI (student loan/rent included/2 CC payments): 11.5%

Credit Limit: 18.5K

Usage: 1.6K

Individual Utilization of Cards: Card 1 (15%) Card 2 (2%) all other cards have no balance

Vehicle: 2022 M5 Comp

Vehicle Price: 118K 

Mileage: 0

Previous Auto Loan: 52K 

Desired Term: 72 months 

 

 

 

Never missed a payment on anything (car, CC, phone, etc.) , financed 2 cars to my name. Is it the wisest financial decision to be buying this car? Probably not. Can I afford to max out 401k & emergency fund while owning the car and paying for all other bills + associated cost of operation of the car (budgeting 500/month gas and 250/month tolls)? Yes. I have a lost cost of living and only spend on cars as I love driving and being a part of the car community and this car has been my dream. Monthly expenses - Rent ($750 - the steal of the century got it pre-covid) Student Loan ($120) 2 CCs ($50 a month interest combined) 

 

Would love to get your feedback on what my approval odds are and I thank whoever replies in advance for the feedback!!! 

 

 

 

 


Food for thought: this is a 72-month loan -- 6 years. You're in your mid-20s. That's about a quarter of how long you've been alive. You're looking at this in the present, that you can afford it today with your expenses, but what about in a year? 3 years? 5 years?

 

Will you get pay raises? Probably, maybe. Will your rent go up? Unless you're living at home with your parents, almost certainly. Will other expenses or things come into your life between now and your early 30s that you'd like to have budget for but now might not because of this?

 

Don't just think about the cost today; think about the opportunity cost and time sunk into this as well before you decide.

Message 15 of 19
Anonymous
Not applicable

Re: Penfed auto approval? BMW M5


@iced wrote:

@Anonymous wrote:

Hi All, new to the forums so I am wondering what my odds of approval are for a Penfed Auto Loan. 

 

Age: Mid 20s (I put this in here, not sure if it is relevant)

Income: 105K

Current Credit Score: Experian (720) TransUnion (755) Equifax (754)

DTI (student loan/rent included/2 CC payments): 11.5%

Credit Limit: 18.5K

Usage: 1.6K

Individual Utilization of Cards: Card 1 (15%) Card 2 (2%) all other cards have no balance

Vehicle: 2022 M5 Comp

Vehicle Price: 118K 

Mileage: 0

Previous Auto Loan: 52K 

Desired Term: 72 months 

 

 

 

Never missed a payment on anything (car, CC, phone, etc.) , financed 2 cars to my name. Is it the wisest financial decision to be buying this car? Probably not. Can I afford to max out 401k & emergency fund while owning the car and paying for all other bills + associated cost of operation of the car (budgeting 500/month gas and 250/month tolls)? Yes. I have a lost cost of living and only spend on cars as I love driving and being a part of the car community and this car has been my dream. Monthly expenses - Rent ($750 - the steal of the century got it pre-covid) Student Loan ($120) 2 CCs ($50 a month interest combined) 

 

Would love to get your feedback on what my approval odds are and I thank whoever replies in advance for the feedback!!! 

 

 

 

 


Food for thought: this is a 72-month loan -- 6 years. You're in your mid-20s. That's about a quarter of how long you've been alive. You're looking at this in the present, that you can afford it today with your expenses, but what about in a year? 3 years? 5 years?

 

Will you get pay raises? Probably, maybe. Will your rent go up? Unless you're living at home with your parents, almost certainly. Will other expenses or things come into your life between now and your early 30s that you'd like to have budget for but now might not because of this?

 

Don't just think about the cost today; think about the opportunity cost and time sunk into this as well before you decide.


Responses like this are exactly the reason I asked the question here. This is a great point. In the event that my QOL needs to change around the car, that is the day I get rid of it. 

Message 16 of 19
iced
Valued Contributor

Re: Penfed auto approval? BMW M5


@Anonymous wrote:


Responses like this are exactly the reason I asked the question here. This is a great point. In the event that my QOL needs to change around the car, that is the day I get rid of it. 


This comes with an element of risk as well. Right now's a good time to sell cars because of chip shortages and such, but generally speaking cars are depreciating assets. I haven't run the numbers on a M5 (I'm more of a Z4-type, well until the new designer ruined the grills, now I might be a M8 person), but make sure that you won't be underwater if you do have to get rid of it in say 3 years. Having to still owe money on something you don't even own isn't a great place to be. It looks like you're making a large enough down payment to probably mitigate this, but measure twice cut once as they say.

Message 17 of 19
Creditplz
Valued Contributor

Re: Penfed auto approval? BMW M5

That's great!! shoot... I love cars but I'd flip it after a few months drive Hhahaha, have you talked to the dealer about outside financing?. They make money on BMWFS... so if you run it by them you might get a unfavorable response... best of luck!! And enjoy the car!! I'm in my mid 30's and absolutely love cars and homes so I find a excuse to buy a car every 4-6 months.. 

 

best of luck! And drive safe (as safe as possible) cause once those turbos wind up.... Godspeed! 

Message 18 of 19
sweets2323
Established Member

Re: Penfed auto approval? BMW M5

What was yout interest?

Auto Score 8 Equifax 725
Auto Score 9 Equifax 734 Transunion 717 Experian 718
Auto Loan 5, 4, 2 Equifax 744 Transunion 730 Experian 748
Message 19 of 19
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