Hello, I am about to apply for the BMW credit application for a 2018 BMW M3 at $899/m. I applied once and got rejected, here are the stats I applied with
Me, 19 years old, 700 FICO 8 score, zero loan/lease history, $45k/yr income.
My mom as a cosigner. 650ish score, $45k/yr income
I now know it’s pretty obvious why I was rejected. So after some convincing I will be able to get my dad to cosign. Found out his credit score isn’t that bad. Here are his stats I will be applying with.
My dad, 700 FICO 8 score, 730 transunion, and $200k+ yearly income. Has good history with BMW financial from leasing BUT this was about 20 years ago.
So here are my questions:
Do I have a good chance at getting approved?
Does it matter who’s name is put down first on the application? Would this make them the primary or something? If so, should I make my dad the primary even though I will be paying for the car from my bank?
Aside from a hard inquiry, will this hurt my dad’s credit score assuming I do not miss any payments? Since he will be the cosigner.
What credit bureau does BMW financial look at the most? Or do they look at FICO 8 score the most?
All admins, this is different than my previous thread. Thanks so much to everyone that helps! I really appreciate it.
Okay, I am a financial advisor and will chime in. I was once 19 and my eyes were bigger than my wallet.
This IS NOT personal advice to you and ultimately you’ll need to make your own decision. But, I’ll leave some generally accepted guidelines for budgeting.
I can’t comment on if you’ll be approved or who should be the primary. But at $45k/year, your monthly payment of $899 will eat up 24% of your income.
Generally, one’s debt to income (housing ratio 2) should be 36% or less of their gross income. In this scenario, you’d be left with 12% of your gross income for housing, insurance and other housing expenses. This is a foolish financial decision at your age/income level.
Honestly, no one can really tell you if that will work, all you can do is try if your dad is willing to be the primary. COVID has changed the game in terms of financing and approvals and BMW has no reason to take on the risk when they have an owner already for the car.
Holy sh*t I get the same BS on every question I ask. My finances are in order and I have 6 figures in my bank. YES I can afford this car pretty easily. Just please help me out with what I am asking. I am annoyed at this point with all the judging of my choices
Buy the car. You won’t find a financier willing to do this. We had a drug dealer type situation where someone with 6 figures in cash, couldn’t prove income and wanted a m340. That was pre Covid too. We’re telling you the same thing we did to him.
Good luck finding a financier, 40k for a 17 cpo m3 with 26k, mod it, beat it, cuz it’s yours. Leasing isn’t the mean all end all, espeacialy if you don’t have 1. POI, 2. T1 credit.
Also I will judge the hell out of you, I’m 17, and I reserve that right, espeacially on the Internet. I will gladly enjoy my Volvo and my low insurance bill. You do you dude, I just won’t understand why.
No. BMW is extra strict on lease transfers, so tier 2 or lower is rolling the dice of getting approved, much less without asking you to back up what you put in the application.
Also, since your dad is going to be the primary, make sure he is aware of the hit to his dti since you said he was trying to buy a house. You don’t want to be the reason his mortgage app falls apart.
Dude general rule of thumb for BMWFS (I’ve done several leases through them)
The income of the primary applicant needs to be substantially above the MSRP of the car irrespective of the payment. Dad as primary applicant + you as cosigner should go through w/o any issues whatsoever.
