Recent college graduates ordering...

imported_Oreo · 05-19-2008, 05:40 PM

Recently I graduated, and I'm gonna start working this summer as an engineer, and I wonder, how has the ORDERING/FINANCING process for recent graduates been ? I know that for instance, I do have a good credit, but it isn't very substantial. Also, since we don't have a current job yet, how does the dealer go about this? If you're just starting to work full time...

Thanks in advance guys..

M3WannaBe · 05-19-2008, 05:49 PM

I'd think that financing the car without a current job will be nearly impossible unless you have someone co-signing for you.

x97Melbourne · 05-19-2008, 05:50 PM

you may want to be "pre-approved" at a 3rd party company....take the stress away from the dealership experience.

akak1997 · 05-19-2008, 05:55 PM

in terms of financing, if you haven't been working full time for at least 6 months, most financial institutions will not offer you a ~$30k loan with good interest rate or at all (regardless of your credit score). Unless you've saved up a lot for down payment (i.e. over 50% of the OTD price) I think your chance of getting a loan is slim.

There are just a lot of uncertainties when you first start working. I'd seriously urge you not to buy a car so soon. Give it a year or so, understand what you need to spend and see how much money you can afford to spend on a car before even start thinking about buying one. Oh, btw, you've to pay TAX now, don't forget that :P

imported_Oreo · 05-19-2008, 06:07 PM

yes i know about tax paying..it sucks..

the thing is, the current car I have will be gone beginning of 09, since it will go to my lil sister who's still at college (my dad payed for that car)....so I am left without a car for next year; therefore, I NEED to buy a car...I will have less than 6 months of work by then, probably close to it tho (but with all the ordering taking a couple months) I am doubtful I will be able to pull it off...

akak1997 · 05-19-2008, 06:26 PM

Get a used car, something like a VW GTi or a Subie WRX, both turbo car and for a 04 or 05 you should be able to get one for around 15k.

imported_Oreo · 05-19-2008, 06:37 PM

i would still need to get a loan...which is the problem

akak1997 · 05-19-2008, 06:54 PM

But it would be a much smaller loan. What other debt do you've? like Student Loan, or credit card debt? If you don't have a lot of debt, and can get someone to co-sign, you should have a much better chance getting a loan.

pgr135i · 05-19-2008, 06:58 PM

I'm not exactly a recent graduate; I graduated three years ago and have since been working. And still, I could only get a money factor of 0.003 (approx 7.2% rate) for my lease. Although I have a great credit score, they said I don't have enough "credit". The credit score based on your credit card use doesn't count. If you have previous car or home loan, it counts.

I doubt if they'll entertain you if you went there without a job.

Year1of1 · 05-19-2008, 07:45 PM

I have tier one credit, graduated last year, been working for 6 months and i had no trouble. Not sure what your exact concern is

Justin · 05-19-2008, 08:12 PM

How much do you want to finance? I don't know your whole financial picture, so don't think I'm being preachy, but I'd go for a less expensive ride. Engineering is a good profession, but if you can't afford to put down a nice down payment I'd hold back for now. Also, make sure you're maxing out your 401k. It'll pay off huge as your older... maybe you'll be able to get an m3 or something someday... it'll be a collectable by then

btw, I got quoted at 5.5% last week for 36 months. Not superb, but I hope to have it paid off in a year anyway.

imported_Oreo · 05-19-2008, 08:36 PM

what do you mean when you say "tier 1 credit score" Year1of1 ?
You've been kind of lucky, but I've read that if you have less than 6 months working full time its a pain to get a loan w/ decent interest.

Thx for your input Justin...as far as my credit, all I have is credit card credit..no home or car....and I have a student loan debt, which I will be paying in a couple months...even though I understand your point for going with a less expensive ride, if I'm maxing my 401k and have a couple K to put in downpayment and can afford the car I would go for it....

I'm just trying to see if it's possible..cuz it would be my first car, and not sure how all this process goes for recent college graduates...

BMWhokie · 05-19-2008, 08:39 PM

I ordered mine 2 months out of college. I interned with my company over the summer, then carried it over as part time when I was away at school. Getting a loan @ 5.0% for 60 months was no problem. I was also offered 3.5% for 36 months. I do plan on paying it off early anyways. The only reason I purchased the 135i so soon is because I'm entering the leadership development program @ my company. It's a 2-3 year program. So there's some job security in that.

imported_Oreo · 05-19-2008, 08:52 PM

that's some good news..nice...

i have interned and part time..but not continuously....let's see what happens...

i'm entering into a new eng. program as well in the company..so I'm in a similar situation as you were..

Just wondering, did anyone have to co-sign in ur loan?

Year1of1 · 05-19-2008, 09:47 PM

Quote:

Originally Posted by Oreo

what do you mean when you say "tier 1 credit score" Year1of1 ?

tier 1 is 750 or higher. I built my credit during college, credit cards, car payments, college payments and job.

ihatepostmodernism · 05-19-2008, 10:11 PM

the financing companies give special deals to people when they get loans right out of school--6 mo to a year out I think. Its a stupid policy in my opinion, but good for those getting loans.

pschnei3 · 05-20-2008, 06:29 AM

i established no credit when i was in college and only worked 4months before i purchased my 325i 2006. i went through BMWBNA and received the 2.9apr for 60months.

roldan · 05-20-2008, 10:36 AM

BMW FS also has a college graduate program that can compensate for a shorter credit history by providing a final transcript and/or copy of diploma along with a letter from your employer - that's what I'm planning to do.

Sounds like we're in a similar boat - I'm starting an electrical engineering job in a couple weeks. I haven't finished all the paperwork for the college grad program yet, having just graduated on Sunday, but I'll certainly let you know how it goes in terms of rate and things.

coco_m3 · 05-20-2008, 12:14 PM

BMW is so hard to get financed threw,
here is my specs and they turned me down:
Age: 19
Credit: Very Good
Time @ Job: 1.5 years
$ per month: 3500
my BMW monthly payment 430.00
and i was turned down.
i had to have my dad with his near 800 credit score to co sign...
not very logical.

Jewpac · 05-20-2008, 01:46 PM

Quote:

Originally Posted by pgr135i

I'm not exactly a recent graduate; I graduated three years ago and have since been working. And still, I could only get a money factor of 0.003 (approx 7.2% rate) for my lease. Although I have a great credit score, they said I don't have enough "credit". The credit score based on your credit card use doesn't count. If you have previous car or home loan, it counts.

I doubt if they'll entertain you if you went there without a job.

Im in the same boat, but only been working for 18 months, I got approved on 20K at 5% no co-signor.

HardTech · 05-20-2008, 02:26 PM

Quote:

Originally Posted by silverbullet135i

BMW is so hard to get financed threw,
here is my specs and they turned me down:
Age: 19
Credit: Very Good
Time @ Job: 1.5 years
$ per month: 3500
my BMW monthly payment 430.00
and i was turned down.
i had to have my dad with his near 800 credit score to co sign...
not very logical.

lol, it was age. BMW FS is so easy to get approved.

Age 25
Credit Very Good
Time @ Job <1 month

They told me to drive off with the car, because with BMW you either get in or you don’t. And he’s seen people with credit in the 650's get in with no issues. So he would be shocked if I got denied.

To the OP if you have been paying student loans in your name, your credit should be golden. I had a 715 credit score in my second year of college. The reason why the score was low was income to debt ratio (which at the time I had no income). By the time I bought my car my credit was sitting at 770-775 and again according to the credit places, they had no record of me working yet to it was still a income to debt ratio. (Still didn’t have a job till basically 8 months out of college, woohoo for CC and managing them properly.)

I went out and bought my first car (5k down) and had no issues. Granted it’s no 40k car, but I was pre-approved by USAA for 47k. So it should not be an issue.

imported_Oreo · 05-21-2008, 12:19 AM

what about leasing? would it be any different rather than purchasing it ?

05-19-2008, 05:40 PM	#1
imported_Oreo New Member 4 Rep 22 Posts Drives: Join Date: Apr 2008 iTrader: (0)	Recent college graduates ordering... Recently I graduated, and I'm gonna start working this summer as an engineer, and I wonder, how has the ORDERING/FINANCING process for recent graduates been ? I know that for instance, I do have a good credit, but it isn't very substantial. Also, since we don't have a current job yet, how does the dealer go about this? If you're just starting to work full time... Thanks in advance guys..
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05-19-2008, 05:49 PM	#2
M3WannaBe Loiterer 2 Rep 44 Posts Drives: Join Date: May 2008 iTrader: (0)	I'd think that financing the car without a current job will be nearly impossible unless you have someone co-signing for you.
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05-19-2008, 05:50 PM	#3
x97Melbourne Molar World 47 Rep 916 Posts Drives: 2016 435i Coupe Join Date: Apr 2008 Location: Florida iTrader: (0)	you may want to be "pre-approved" at a 3rd party company....take the stress away from the dealership experience.
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05-19-2008, 05:55 PM	#4
akak1997 Major 64 Rep 1,159 Posts Drives: BMW 135 @ 135mph Join Date: Aug 2008 Location: Los Angeles iTrader: (2) Garage List 2008 135i [0.00]	in terms of financing, if you haven't been working full time for at least 6 months, most financial institutions will not offer you a ~$30k loan with good interest rate or at all (regardless of your credit score). Unless you've saved up a lot for down payment (i.e. over 50% of the OTD price) I think your chance of getting a loan is slim. There are just a lot of uncertainties when you first start working. I'd seriously urge you not to buy a car so soon. Give it a year or so, understand what you need to spend and see how much money you can afford to spend on a car before even start thinking about buying one. Oh, btw, you've to pay TAX now, don't forget that :P
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05-19-2008, 06:07 PM	#5
imported_Oreo New Member 4 Rep 22 Posts Drives: Join Date: Apr 2008 iTrader: (0)	yes i know about tax paying..it sucks.. the thing is, the current car I have will be gone beginning of 09, since it will go to my lil sister who's still at college (my dad payed for that car)....so I am left without a car for next year; therefore, I NEED to buy a car...I will have less than 6 months of work by then, probably close to it tho (but with all the ordering taking a couple months) I am doubtful I will be able to pull it off...
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05-19-2008, 06:26 PM	#6
akak1997 Major 64 Rep 1,159 Posts Drives: BMW 135 @ 135mph Join Date: Aug 2008 Location: Los Angeles iTrader: (2) Garage List 2008 135i [0.00]	Get a used car, something like a VW GTi or a Subie WRX, both turbo car and for a 04 or 05 you should be able to get one for around 15k.
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05-19-2008, 06:37 PM	#7
imported_Oreo New Member 4 Rep 22 Posts Drives: Join Date: Apr 2008 iTrader: (0)	i would still need to get a loan...which is the problem
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05-19-2008, 06:54 PM	#8
akak1997 Major 64 Rep 1,159 Posts Drives: BMW 135 @ 135mph Join Date: Aug 2008 Location: Los Angeles iTrader: (2) Garage List 2008 135i [0.00]	But it would be a much smaller loan. What other debt do you've? like Student Loan, or credit card debt? If you don't have a lot of debt, and can get someone to co-sign, you should have a much better chance getting a loan.
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05-19-2008, 06:58 PM	#9
pgr135i Enlisted Member 0 Rep 37 Posts Drives: Join Date: Apr 2008 iTrader: (0)	I'm not exactly a recent graduate; I graduated three years ago and have since been working. And still, I could only get a money factor of 0.003 (approx 7.2% rate) for my lease. Although I have a great credit score, they said I don't have enough "credit". The credit score based on your credit card use doesn't count. If you have previous car or home loan, it counts. I doubt if they'll entertain you if you went there without a job.
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05-19-2008, 07:45 PM	#10
Year1of1 Lieutenant 32 Rep 573 Posts Drives: 2020 X5 M50 Join Date: Jan 2008 Location: New Jersey iTrader: (0)	I have tier one credit, graduated last year, been working for 6 months and i had no trouble. Not sure what your exact concern is __________________ 2008 128 - retired 2010 X5 - retired 2013 535 - retired 2015 X1 - retired 2020 X5 M50i - On Order
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05-19-2008, 08:12 PM	#11
Justin Private First Class 21 Rep 161 Posts Drives: Join Date: May 2008 iTrader: (0)	How much do you want to finance? I don't know your whole financial picture, so don't think I'm being preachy, but I'd go for a less expensive ride. Engineering is a good profession, but if you can't afford to put down a nice down payment I'd hold back for now. Also, make sure you're maxing out your 401k. It'll pay off huge as your older... maybe you'll be able to get an m3 or something someday... it'll be a collectable by then btw, I got quoted at 5.5% last week for 36 months. Not superb, but I hope to have it paid off in a year anyway.
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05-19-2008, 08:36 PM	#12
imported_Oreo New Member 4 Rep 22 Posts Drives: Join Date: Apr 2008 iTrader: (0)	what do you mean when you say "tier 1 credit score" Year1of1 ? You've been kind of lucky, but I've read that if you have less than 6 months working full time its a pain to get a loan w/ decent interest. Thx for your input Justin...as far as my credit, all I have is credit card credit..no home or car....and I have a student loan debt, which I will be paying in a couple months...even though I understand your point for going with a less expensive ride, if I'm maxing my 401k and have a couple K to put in downpayment and can afford the car I would go for it.... I'm just trying to see if it's possible..cuz it would be my first car, and not sure how all this process goes for recent college graduates...
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05-19-2008, 08:39 PM	#13
BMWhokie Private 8 Rep 92 Posts Drives: BMW 135i Join Date: Feb 2008 Location: Fairfax,VA iTrader: (0)	I ordered mine 2 months out of college. I interned with my company over the summer, then carried it over as part time when I was away at school. Getting a loan @ 5.0% for 60 months was no problem. I was also offered 3.5% for 36 months. I do plan on paying it off early anyways. The only reason I purchased the 135i so soon is because I'm entering the leadership development program @ my company. It's a 2-3 year program. So there's some job security in that.
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05-19-2008, 08:52 PM	#14
imported_Oreo New Member 4 Rep 22 Posts Drives: Join Date: Apr 2008 iTrader: (0)	that's some good news..nice... i have interned and part time..but not continuously....let's see what happens... i'm entering into a new eng. program as well in the company..so I'm in a similar situation as you were.. Just wondering, did anyone have to co-sign in ur loan?
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05-19-2008, 10:11 PM	#16
ihatepostmodernism Private 9 Rep 96 Posts Drives: Join Date: Oct 2007 iTrader: (0)	the financing companies give special deals to people when they get loans right out of school--6 mo to a year out I think. Its a stupid policy in my opinion, but good for those getting loans.
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05-20-2008, 06:29 AM	#17
pschnei3 Second Lieutenant 66 Rep 205 Posts Drives: 135i AW Join Date: Feb 2006 Location: ohio iTrader: (0)	i established no credit when i was in college and only worked 4months before i purchased my 325i 2006. i went through BMWBNA and received the 2.9apr for 60months.
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05-20-2008, 10:36 AM	#18
roldan Second Lieutenant 8 Rep 238 Posts Drives: '08 135i Join Date: Apr 2008 Location: Somerville, MA iTrader: (0)	BMW FS also has a college graduate program that can compensate for a shorter credit history by providing a final transcript and/or copy of diploma along with a letter from your employer - that's what I'm planning to do. Sounds like we're in a similar boat - I'm starting an electrical engineering job in a couple weeks. I haven't finished all the paperwork for the college grad program yet, having just graduated on Sunday, but I'll certainly let you know how it goes in terms of rate and things.
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05-20-2008, 12:14 PM	#19
coco_m3 Brigadier General 167 Rep 4,311 Posts Drives: Supercharged E90 M3 Join Date: Mar 2008 Location: SL,UT iTrader: (1) Garage List 2008 BMW M3 [0.00] 2010 BMW E90 335i [0.00]	BMW is so hard to get financed threw, here is my specs and they turned me down: Age: 19 Credit: Very Good Time @ Job: 1.5 years $ per month: 3500 my BMW monthly payment 430.00 and i was turned down. i had to have my dad with his near 800 credit score to co sign... not very logical. __________________
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05-21-2008, 12:19 AM	#22
imported_Oreo New Member 4 Rep 22 Posts Drives: Join Date: Apr 2008 iTrader: (0)	what about leasing? would it be any different rather than purchasing it ?
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