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BMW M5 F90 (2018+) General Forums F90 M5 Pricing, Ordering, Tracking, and European Delivery    Only way I can get approved to lease a 2019 M5 is a "one pay lease"...

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      10-26-2019, 02:01 AM   #1
zerosum8
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Question Only way I can get approved to lease a 2019 M5 is a "one pay lease"...

New member here... so here's the situation..

I'm a successful business owner and have very strong credit 750+, but according to BMW, I don't have enough "credit history" to be approved to lease.

They said I needed a co-signer, so my father jumped in and said no problem. He's also a successful business owner, owns several properties, several houses, over $3M in machinery, several cars, etc, etc... BMW financial said that although he has "elite credit" as well as I do, that he ALSO doesn't have enough credit history... my father, being as successful as he is, just pays for everything in cash, including his houses and properties, cars, etc. He doesn't finance, never leased, you get the idea...

I have several hundred thousand in the bank, and can easily buy the car outright, but I'd rather just lease. The best option they could come up with is a "one pay lease", meaning I pay ~$45k for the 3-year lease upfront.

I'm not worried about the money, but I'm more concerned because I'm at the age where I would like to start looking into purchasing a relatively expensive home/property soon. Every car I've ever owned has been gifted to me, my college has been paid-in-full upfront by my family, and I don't really have anything that I've ever paid through installments. I was told that a "one pay lease" of this size would essentially help me in the short future when it comes to future car and home purchases because it would show that I am capable of paying a substantial installment payment.

I know that the "one pay" for a 2019 M5 COMP would be roughly $45k, which is essentially about a down payment for a house, and I'm not sure if I'm being lied to about the credit bonuses since I'd be paying this upfront.

Like I said before, the money isn't the issue as much as whether or not it will actually help me build credit for future substantial purchases.

What do you guys think?
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      10-26-2019, 09:38 AM   #2
David.J
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Quote:
Originally Posted by zerosum8 View Post
New member here... so here's the situation..

I'm a successful business owner and have very strong credit 750+, but according to BMW, I don't have enough "credit history" to be approved to lease.

They said I needed a co-signer, so my father jumped in and said no problem. He's also a successful business owner, owns several properties, several houses, over $3M in machinery, several cars, etc, etc... BMW financial said that although he has "elite credit" as well as I do, that he ALSO doesn't have enough credit history... my father, being as successful as he is, just pays for everything in cash, including his houses and properties, cars, etc. He doesn't finance, never leased, you get the idea...

I have several hundred thousand in the bank, and can easily buy the car outright, but I'd rather just lease. The best option they could come up with is a "one pay lease", meaning I pay ~$45k for the 3-year lease upfront.

I'm not worried about the money, but I'm more concerned because I'm at the age where I would like to start looking into purchasing a relatively expensive home/property soon. Every car I've ever owned has been gifted to me, my college has been paid-in-full upfront by my family, and I don't really have anything that I've ever paid through installments. I was told that a "one pay lease" of this size would essentially help me in the short future when it comes to future car and home purchases because it would show that I am capable of paying a substantial installment payment.

I know that the "one pay" for a 2019 M5 COMP would be roughly $45k, which is essentially about a down payment for a house, and I'm not sure if I'm being lied to about the credit bonuses since I'd be paying this upfront.

Like I said before, the money isn't the issue as much as whether or not it will actually help me build credit for future substantial purchases.

What do you guys think?
I believe you still qualify for the lease incentives regardless of paying it all in one payment, also your Money Factor drops for paying all in 1. I had the same situation when I leased my M4, credit score was 800+ but did not get approved due to insufficient history. had a family member that leased a car before co-sign. Now I recently applied for an M5 and got approved since I do have the history on my credit report.
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      10-27-2019, 06:12 PM   #3
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I also had a hard time getting approved. With 0 debt, a 760 credit score and high income they would not approve me without 7 MSD's! They said it was because my Auto credit score was low. I've never had a car loan/lease, usually just pay cash. Luckily my GF was there and with her cosigning they didn't require MSD's. Which is funny because she has over 10k a month going out for a mortgage/student loans/2 BMW leases.
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      10-27-2019, 07:32 PM   #4
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They don't care how successful you are, you have no car credit and neither does your co-signer.
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      10-27-2019, 08:00 PM   #5
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you have several hundred thousand in the bank, but want an m5?

lol...
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      10-27-2019, 08:22 PM   #6
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Quote:
Originally Posted by TrevorM3 View Post
you have several hundred thousand in the bank, but want an m5?

lol...
Yeah he wants to keep most of it ....
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      10-27-2019, 09:27 PM   #7
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Do not get offended by the outcome. When a bank sets a set of standards for their credit approvals, they have to abide by them regardless of a prospective clients situation. You may have all the money in the world but you don't have a track record for an auto loan which is a requirement. Even if you show them your bank account, they still have to obey by these rules or else they run the risk of being hit by the Department of Banking in the state they work for. Granting one person a loan but not another with the same auto credit history could be grounds for a discrimination suit (which actually did happen to a major automaker, thus causing many laws and requirements to change).

Take the one pay lease, in your situation it works great. Not only is it essentially the same as a regular lease (same residuals and rebates available), but your money factory (interest rate) is reduced which nets you a lower payment/cost.

The other benefit, which I've had clients in your situation take advantage of, is that on your credit report it looks like a regular lease. At the end of the lease, banks see 36 payments made with no derogatory marks. At this point, not only do you have history, but also a record of payment for a pricey car.

Next time you lease, it'll be an auto approval for a traditional lease.
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      10-28-2019, 01:37 PM   #8
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make sure the deal spells out the bonuses and incentives.

You're not alone. I've heard of these types of shenanigans. My brother who is very very successful couldn't show any w2 income due to how his tech company is managed. The guy could literally buy 10 dealerships in cash although they didn't care. Underwriting finally budged when he relinquished his securities statement. It was unbelievable but I guess it makes a little sense from the bankers' perspective surrounding rules and regulations. Good Luck.
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      10-28-2019, 04:33 PM   #9
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My friend just ran into a similair issue, he was financing a porsche and leasing an M3 ($880 payment and $750 ) sold porsche and lease ended on m3, he was denied on the fact that they could not prove he could make the $1300 payment due to lack of history of a high payment.

They didnt care that he has two years of paying over $1600 a month, they said they need to see one large payment not two that equal the same or more, 770 credit, 6 years of auto finance history, $180k income, paid off home. But who knows if he can survive paying $300 less monthly then he did before
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Last edited by Quinn A; 10-28-2019 at 04:41 PM..
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