I’ve locked in a deal on a 26’ BMW I’m ordering (agreed dealer discount, base MF, $DAS etc.). I know I’ll be subject to the lease program at delivery if it takes >60 days, but I got alignment on pricing & structure.
The dealer sent over a purchase order and credit app. On the PO, in large bold letters, it says:
“Quoted terms are based on Tier 1 credit. To qualify for Tier 1, applicant must have a credit score of 800 or higher.”
This raised a red flag for me. I monitor my credit closely and I’m over 800, so I don’t expect an issue, but I thought BMWFS Tier 1 typically starts in the 750 range.
Is it normal for a dealer to define Tier 1 as 800+? Could they use this to bump the MF if someone’s score is 799, even if BMWFS would still consider that Tier 1?
Feels a bit like a preemptive justification to markup the MF later, but maybe I’m overthinking it.
Would love to hear if others have seen this before or know BMWFS’s actual Tier 1 criteria.
Thanks in advance!
On which model? If you’re looking at Kredit Kamera, for example, no one uses those scores. If you’re looking at FICO 9, 800 is a participation trophy because the scale goes up to 900.
I believe BMWFS uses a FICO Auto 8 (enhanced FICO score for the auto lending industry, which weights installment loans [particularly auto finance trade lines] higher than the standard FICO 8].
The dealer doesn’t determine the credit tier, the lessor does.
I would be surprised if it’s that high, or put another way, I would be surprised if this is the threshold where BMWFS starts charging more for money. Median generic FICO 8 iirc is around 680.
@Worldtimer BMW Tier 1 is anything above 720 so clearly this shows the intentions of the dealer and what to expect at time when the car arrives.
I can most likely beat the discount you are getting and will get you base MF and low doc fees of $499 on any BMW order assuming we have allocation for it and will get it shortly. Unless its an M unit I don’t see a reason why we won’t have an allocation.
It’s also very possible that this is an expectation-setting tactic, so expectations can be exceeded.
I’m sure people walk in confidently all the time, with their fake Kredit Kangaroo scores that no one uses at the top of their minds, and then accuse the dealer of shadiness because the score that BMWFS actually uses to assign a risk tier comes in quite a bit lower.
If I’m right it’s still a pretty crude tactic, just saying that the ignorance about how credit works is comprehensive. Some of the worst credit information I’ve encountered has come from bankers, mortgage loan officers, and - OMG - real estate agents.
It is likely a standard stamp for the dealer on every PO that covers their “own” financing options with their preferred banks, etc. as some of those lenders may consider applicants to be Tier 1 only when above an 800.
Instead of posting on here first why not just ask the dealer?
Lots of noise here for no reason OP, you will be fine.
