HELP: MB Lease Credit Check queries

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1

Hi,

I’m about to fill in a credit check application requested by one of the Mercedes dealers in California, for a deal to lease 2019 C-Class.
Quick background: Non-US/Alien, graduated recently (Masters) from a really good school in US, in a really good paying job at a tech start-up in the Bay (three months employment history), US Visa till 2022, Credit history of 1 year with one credit line, and 0 hard checks ever, credit score of 735 (as per Credit Sesame and Nerdwallet). Can provide each and every document.

Queries -

  1. Can I just provide the dealer with a credit report that I can order myself? That way, I can use the copies of credit reports to provide multiple dealers, helping my just get one hard check on my credit.
  2. What is the Tier 1 like for being qualified (especially for Mercedes)? I’m dreading I might not qualify for Tier 1 and they demand 40-50 USD more per month to get the lease done. Any insights here?
  3. Am I entitled to get a copy of the credit check and decision made by a dealer? Or, they have the right to keep it internal, and just share verbally?
  4. If a MB dealer does a credit check and I want to go to another MB dealer, do I need to undergo another check, or the MB credit checks work universally?

Any help or insight is appreciated. Really stressed here.

2

Questions 1 and 4 are similar. You can provide the dealership with a report, but Mercedes financial services will have to run their own report, and since all the dealerships use Mercedes Benz financial services, you won’t get multiple hard reports, if one rejects you, they’ll all reject you.
As far as tier 1, not positive of the current mf, and I think with Mercedes it varies from model to model and what trim you get (4matic or not), so you can check that out at Edmonds.
Lastly, you should be entitled to a report if you ask for it, but the dealer isn’t going to lie about you being rejected, they want to sell you a car, the issue would be if they quote you a higher money factor than the buy rate is, they may tell you that you do not qualify for base rate, and that’s something I’m not sure if you can fight. If Mercedes Benz financial services says because of your limited history, you are only tier 2, the dealer can’t change that.

3

I would say there are high chances of not getting approved.

4

Any particular reason that stand out to you as to why I won’t be approved at all?

5

Limited credit history, no auto loan history

6

@jakhfue What I’m concerned about is that the dealer might play tricks saying I didn’t qualify for Tier 1 and then I end up paying more for the lease. Which is why I wanted to know if I’m entitled to see the decision/report they generated to make the decision.

7

In any case, they may request a cosigner

8

@vhooloo Wouldn’t that pull me down to Tier 2/3, or that generally calls for a complete denied case. I’m sorry, I’m new to leasing.

9

Got it, thanks! Any workaround to avoiding a co-signer? What would you recommend in my situation?

10

YOu can actually submit the credit request to MBFS directly and have them forward to dealer. That way you will know all the details. Google MBFS credit check for the link and number to fax/email

11

The dealer requested me to fill in an online form available on its own dealership website.

12

Yes so you can fill that and send tp MBFS directly - so you will know if they approve you or not

13

I was also in the same boat 3 yrs ago. Mercedes disagreed to lease due to my credit.Peobably you will have to buy that car If you like it or try a different luxury brand.so I leased bmw

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14

Got the lease deal done at a MF of 0.0012 instead of 0.0007 (Tier 1). Had the TransUnion Auto score of 755.

Thanks everyone!

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16

Why? 755 should qualify you for Tier 1. Did they mark up the MF?

17

Congrats. That does seem marked up. Depending on what state you’re in you could also have done MSDs to lower the MF.

18

I could’ve lowered my MF by 0.00007 with each MSD worth 650, but I chose not to put in money.

I’m in CA state.

19

Not too sure. But the credit report they shared with me put me in the second last bracket. The final bracket was 800+

Also, I was told that I had limited credit history (just 1 year) with just one account (one credit card), and since I’m a foreign national, hence despite 755 I got a MF of 0.0012 instead of 0.0007

20

The difference in payment is one latte/month. Don’t worry about it. Make more Mission Impossible movies!

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