How lenient is BMWFS?

[Zane.BMW]

Hi all,

I've been reading a lot on the forum. Lots of good info and came to a conclusion that I want to lease an M4. My question is, how lenient is bmwfs? I've posted something similar like this before but didn't give much detail. I'm 22 years olds. Making 85k/year. Self employed (4 years). Dti is 8%. My credit sits at about 680 experian. I know they pull experian usually. No collections or anything bad on my report. The problem is I've never had an auto loan. But I've had a loan for my motorcycle (Yamaha r6). What do you think my chance are for approval?

[Andrew115]

I may have some tips to get your credit score up if you want them. Pm me if your interested. It can't hurt to look into raising it a bit before they pull it.

[ufgtrs2007]

You'll likely be approved with a substantial cap reduction since you don't have any history of auto credit.

[Zane.BMW]

Originally Posted by ufgtrs2007

You'll likely be approved with a substantial cap reduction since you don't have any history of auto credit.

can you explain to me what "substantial cap reduction" is?

[MaynardZed]

Originally Posted by Zane_Ngo

can you explain to me what "substantial cap reduction" is?

Down payment.

[freezey]

Your CA will be able to bump you to BMW tier 1 which is the preferred for the best possible deal.

However I will say this. Keep your money and buy something that will give you a return on your investment. I know the car is cool and it will be awesome to drive around but making 85k and going to lease a 75k car it doesn't add up and isn't a solid financial move. I waited to lease an M class until I broke 300k and had multiple sources of income as well as property. Again the choice is entirely up to you but a lease payment with insurance you are looking at at least $1000 a month.

[Zane.BMW]

Originally Posted by MaynardZed

Down payment.

Thanks, wouldve been a lot easier saying that.

Originally Posted by freezey

Your CA will be able to bump you to BMW tier 1 which is the preferred for the best possible deal.

However I will say this. Keep your money and buy something that will give you a return on your investment. I know the car is cool and it will be awesome to drive around but making 85k and going to lease a 75k car it doesn't add up and isn't a solid financial move. I waited to lease an M class until I broke 300k and had multiple sources of income as well as property. Again the choice is entirely up to you but a lease payment with insurance you are looking at at least $1000 a month.

Thanks for the advice!

[mul1gan]

tough crowd, I personally would be sporting a GTthreeeeeee (used of course).

OP, like others have said, if you're willing to put a lot down and pay close to msrp I'm sure the CA will work with you. deflation on the rise, which means avg consumers are holding off on big ticket items imho.

Originally Posted by freezey

Your CA will be able to bump you to BMW tier 1 which is the preferred for the best possible deal.

However I will say this. Keep your money and buy something that will give you a return on your investment. I know the car is cool and it will be awesome to drive around but making 85k and going to lease a 75k car it doesn't add up and isn't a solid financial move. I waited to lease an M class until I broke 300k and had multiple sources of income as well as property. Again the choice is entirely up to you but a lease payment with insurance you are looking at at least $1000 a month.

[GrussGott]

Originally Posted by freezey

However I will say this. Keep your money and buy something that will give you a return on your investment. I know the car is cool and it will be awesome to drive around but making 85k and going to lease a 75k car it doesn't add up and isn't a solid financial move.

I wish there was an easy way to impart this wisdom into the < 25 YO brain ... People would be a lot happier and wealthier if there was.

Since there's not I say buy the car, drink heavily, go skydiving, get married, have kids, trust strangers, and co-sign for a loan for your drinking buddy! Live it up!

[dkhm3]

Originally Posted by freezey

Your CA will be able to bump you to BMW tier 1 which is the preferred for the best possible deal.

However I will say this. Keep your money and buy something that will give you a return on your investment. I know the car is cool and it will be awesome to drive around but making 85k and going to lease a 75k car it doesn't add up and isn't a solid financial move. I waited to lease an M class until I broke 300k and had multiple sources of income as well as property. Again the choice is entirely up to you but a lease payment with insurance you are looking at at least $1000 a month.

+1.

In hindsight, I stupidly put 100% down on a 02 e46 56k in my 20's. should have invested that money. the car was definitely nice, but make your money work for you first.

[CRtoE92]

I think a bit differently than most of you all
I was never money saver and still am not
Been working as a ER/CCU RN for a quiet long time i encountered a lot of situations where people dies spontaneously, especially young people from accidents
That made my perspective to change and would rather enjoy the life for now than worrying about later which i think maybe it will never come
i hardly ever have any money left getting close to my pay day

At least i have had a M4 if i die tomorrow
My money in my bank will not buy me another life

[jeff4598]

Wow. If you hang in ER's you see bad things happen to people. SLIGHT selection bias. Follow up with some of the people who live to go home but lose their job and income to their injuries and have no back up. I won't directly insult anyone here so I AM DONE! Bye bye.

[freezey]

Call me crazy but I love my car don't get me wrong it's one of my prized possessions. However I love looking at large numbers in multiple bank accounts and investments working in my favor. One lesson I learned at a young age that was a great lesson is
"If you have a single source of income you will never get rich"
Read into it how you will but driving the M4 will be great but parking it at an apt you don't own or a house you live in with your parents isn't the best move.

[aquarius08]

Why don't you just try to help the guy out rather than acting like his dad?

[jeff4598]

Helping him out is not the same as acting like his dad?

[Sephiroth]

I doubt you'll get a loan at a good rate.

[Zane.BMW]

Originally Posted by 1love

I doubt you'll get a loan at a good rate.

not looking for a loan, looking for lease and if the MF is a bit higher because of my credit history, i'd be fine with it. even if i had to put a down payment. not a big deal.

[MRCUR]

I don't think you'll have an issue getting approved. The finance people at whatever dealer you end up using should be able to give you a good indication once you fill out the app.

Enjoy the car. You'll absolutely love it. Don't let the old folks in the thread get to you.

[GrussGott]

Originally Posted by freezey

Call me crazy but I love my car don't get me wrong it's one of my prized possessions. However I love looking at large numbers in multiple bank accounts and investments working in my favor. One lesson I learned at a young age that was a great lesson is
"If you have a single source of income you will never get rich"
Read into it how you will but driving the M4 will be great but parking it at an apt you don't own or a house you live in with your parents isn't the best move.

yeah. I've posted the math before, but basically if you take $170k and invest it assuming 8% interest you can have a $1200 payment for M4s for life.

As to the party-now! philosophy, I did that in my early 20s and regret it because:

(1.) Any thrills I had at < 25 are long forgotten plus due to so many other things happening (parties with friends, etc) the comparative enjoyment was much smaller. i.e., my best memories from my 20s are friend-related not car-related. Maybe sadly, I can't really say that these days

(2.) Like freezy, jeff4598 & dkhm3 , when you start seeing that passive income roll in a few light bulbs go on

(3.) Once you get a decent chunk saved you realize that saving is just spending deferred. While I'm working I don't have a ton of free time to enjoy what I'm buying so I've learned to use my time to save ... because when I retire (early hopefully) I'm gonna have plenty of time and a LOT of desire to spend spend spend

as to "helping" this kid, he'll either get the loan or he won't. If he does he'll just regret it later unless he's got a trust fund or family money.... or unless the car helps him see CRtoE92 professionally

[afadeev]

Originally Posted by Zane_Ngo

not looking for a loan, looking for lease and if the MF is a bit higher because of my credit history, i'd be fine with it. even if i had to put a down payment. not a big deal.

BMW FS allows one to get pre-approved before you start haggling with a dealer:
https://creditapp.bmwusa.com/Apply

Once pre-approved for a certain amount at a certain rate, all the guessing will be over.

Good luck,
a

[dantm3]

It's about balance.. You need to enjoy life, but find a balance. I work as a financial advisor and see older guys with millions... I ask what there plans are with the money, and they just don't know how to spend because they lived frugally all there life, or are too old to travel or don't desire fast uncomfortable cars.. They will die with that money and there kids or charity will get it.. U need to enjoy what you can but find a balance between not spending, and spending too much and feeling stressed every month about bills.. If the payment won't stress you.. Then do it

[Vigilant]

OP...the real question is if you pay approximately $1000 a month on the lease for three years with nothing to show for it upon return, are you comfortable with that? You can use some of that money for investment purposes and potentially have a yield that allows you to comfortably acquire a F8x in the future.

I applaud you for being self employed at 22...maybe opt for the lease of a vehicle that allows you to sleep at night without worry about your next meal or utility bill.