Will I get approved for a bmw/lexus lease?

[Anonymous]

Hi,I've been reading alot on these forums and since my family member is getting their license I was thinking about giving him my car and I was gonna lease but im not sure if i will get approved..I either want a bmw 5 series M package or a lexus gs 350 f sport..my credit scores are
TU - 762

EQ - 762

FICO - 761
Not sure about my EX i can't find it for some reason..i make about 40k cash per year but i don't have Ws or pay stubs, and have no proof of income will i get approved or should i wait and find a co signer ?  0 late payments , 0 derogatory marks , 4 total accounts 3 amex 1 capitol 1 ,longest being 2 years 1 month and shortest being 4 months ( opened it for the miles deal ) what do you guys think? thanks 

[Kevin5974]

Credit cards won't likely cut it to carry a note that high with no prior auto loan experience. Cash down may get you in the door, but expect to provide 3 months bank statements for POI.

[Anonymous]

Just a guess, but my guess is no. Credit has tightened over the last year and auto defaults are up a bit, and to be honest, your credit history is still quite thin for a car, especially that car. 

But tthat's just my guess; perhaps a trip to the dealership, bring your credit file, and ask. I would NOT let them pull credit, for fear of a  shotgun approach. Have you tried any other avenues to be approved?

Remember, this is just my guess; I could be all wet. But, here is what I see... You want a car that's 50 grand (a bit more likely), you have never had a car loan, your credit history is good but still relatively new and thin, and worst of all you have no employer but rather a cash deal/business of some sort. That's also quite a low income to be driving that car. I know there may be maintenance attached, but if not, I have some news. My BMW was in the shop quite a bit, and regardless of how minor the issue, I never had a bill under 800 dollars. A missing emblem on a wheel? 800 bucks.  Just my 2 cents, nothing more...

[pipeguy]

You said you make $40k a year gross so I'll assume that may be a bit under $30k a year net after taxes, FICA, etc. While most dealers do not really ask for proof of income, the BMW is $70k to 100+k depending on the model, The Lexus is $50k to $80k plus again depending on the model. Luxury and high-performance models depreciate quickly, BMW I know drops 50% +/- in the first 3 years and this is figured in your residual value calculations that determine the cost of the lease. Using a rough guesstimate of $40k cost for the lease over 36 months at 5% interest you are looking at $1200 payments before insurance and other costs ($14,400 a year basic lease) which is 50% of your net income.

Even if you somehow get qualified for the lease do you think it is wise to dedicate 50% of your net income to a car payment for the next 3 years?   

[Anonymous]

Thanks for the input,I agree my credit is too thin and probably won't get approved after reading your comments..so what can i do just wait a year or 2? and i thought leases have no interest on it im confused.  I was planning on most likely getting a gs350 f sport MSRP is around 56k-60k that was about 600 a month without insurance..well thats what it said on their website

[Anonymous]

Get the Lexus / BMW when you have paid off your house, funded the retirement, and want a fun second car. 

[JGGM]

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@Anonymous wrote:

Thanks for the input,I agree my credit is too thin and probably won't get approved after reading your comments..so what can i do just wait a year or 2? and i thought leases have no interest on it im confused.  I was planning on most likely getting a gs350 f sport MSRP is around 56k-60k that was about 600 a month without insurance..well thats what it said on their website

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With regard to leases having "no interest". I think this is a common mis-conception a lot of people have - probably due to the fact that when you sign a  lease (at least in Texas), it does not show you anything about interest on the paper work. Technically speaking, leases have what's called a "money factor" built into them. If you lease something that has a money factor of .0025, then that comes out to about 6% interest. Money factor X 2400 will give you the interest rate.

[Anonymous]

I have over 800 credit score and no previous auto loan or lease experience either.  I can afford to pay the lease in full all cash.  There is no reason a leasor should reject you with a positive credit history.  Now obviously the issue will be whether you qualify for the lowest manufacturer lease rates or if you get charged more based on credit history.  Previous auto loan or lease is not a requirement for leasing a car.  You just won’t qualify for certain incentives as well like previous lease from the same auto maker and so on.  

If you took a loan rather than lease, I have seen banks add a markup to the loan rate because you didn’t have a previous loan to increase their profit margins.

Don’t listen to the naysayers on here. Some of us have paid all cash for our cars in the past or didn’t require direct ownership even though we could easily have paid it in full.    

[Anonymous]

I work at a dealer also, and I hear they cap your maximum payment at 20% of your gross monthly income. They can approve you for $667 a month. Maybe a bit more if you have good credit.

[Anonymous]

Yeah I think an M5 may be streching it based on income reported.  But a lease in itself is doable on a lesser one.  

A BMW 540i with Xdrive that I saw was 679 a month with 5104 total down with everything included for a manufacturer special lease.