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      03-01-2012, 08:58 PM   #1
jakc
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Getting Approved For Lease

Hey everyone,

I'm new to the forum and have been browsing for a few weeks now but haven't came across anything on getting approved for a lease. I'm fairly young (22) with decent credit but I'm not sure if I'll get approved. What exactly do they look for and if I don't get approved is there anything else I can do besides financing it?

Thanks!
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      03-01-2012, 09:20 PM   #2
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You could steal it. It's the Jersey financing option.



(I'm kidding, obviously)
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      03-01-2012, 09:26 PM   #3
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You could steal it. It's the Jersey financing option.



(I'm kidding, obviously)
Sounds good, that will be my plan B.
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      03-01-2012, 09:35 PM   #4
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Generally
you need to make more annually then the MSRP of the car
and have a credit score of 650+

if you have that you will be ok
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      03-01-2012, 09:37 PM   #5
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The bank is going to look at your FICO score and your credit history. You may have excellent credit where you pay your bills on time or even early, but that still does not mean you're an automatic approval. If you have never leased or financed a vehicle in sizable price of an M3, the banks are not going to like that because you lack "Comp Auto" or Comparable Auto Credit. Meaning you've never had a comparable loan of this degree so the analyst will more than likely turn you down. For example, a person who's most expensive car he/she has leased or financed was a $20K Honda Civic and now trying to get a $70K M3.

However, since the dealer wants your business, they'll fight with the bank as much as they can to get you approved. Usually it comes down to putting a significant down payment or if you have a large income, that you provide bank statements and pay stubs to prove you have significant cash flow or cash in bank.

Or, they'll approve you with a stipulation, such as having a strong co-signer.

BTW, I see that you live in Old Bridge. If you're looking for a salesman, I highly suggest going to Circle BMW in Eatontown and seeing Danny Wong. Got mine from him. He's professional and knowledgeable. I call him a car enthusiast more than a salesman! I'd stay away from Freehold BMW and Open Road BMW in Edison

Last edited by Ghetto2315; 03-01-2012 at 09:43 PM.
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      03-01-2012, 09:55 PM   #6
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Quote:
Originally Posted by dadealus View Post
Generally
you need to make more annually then the MSRP of the car
and have a credit score of 650+

if you have that you will be ok
Do they check that based on how much I report for taxes? I work in the digital advertising industry with pretty long net terms and Q4 profits (biggest quarter) only show up for the following year so my annual salary is usually around half of what it really is.

Quote:
Originally Posted by Ghetto2315 View Post
The bank is going to look at your FICO score and your credit history. You may have excellent credit where you pay your bills on time or even early, but that still does not mean you're an automatic approval. If you have never leased or financed a vehicle in sizable price of an M3, the banks are not going to like that because you lack "Comp Auto" or Comparable Auto Credit. Meaning you've never had a comparable loan of this degree so the analyst will more than likely turn you down. For example, a person who's most expensive car he/she has leased or financed was a $20K Honda Civic and now trying to get a $70K M3.

However, since the dealer wants your business, they'll fight with the bank as much as they can to get you approved. Usually it comes down to putting a significant down payment or if you have a large income, that you provide bank statements and pay stubs to prove you have significant cash flow or cash in bank.

Or, they'll approve you with a stipulation, such as having a strong co-signer.
I'm willing to put down $5-10K, will that be enough? This will be my first car lease and I have never had any financing in the past either.

My FICO last time I checked was around 735 but it's still a pretty short credit history. I have a lot of hard inquiries which dropped it down since I wasn't planning on buying an M3 until summer time when the next gen was suppose to come out but since it's not I thought I'd just settle for the current one.
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      03-01-2012, 10:01 PM   #7
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Quote:
Originally Posted by jakc View Post
Do they check that based on how much I report for taxes? I work in the digital advertising industry with pretty long net terms and Q4 profits (biggest quarter) only show up for the following year so my annual salary is usually around half of what it really is.



I'm willing to put down $5-10K, will that be enough? This will be my first car lease and I have never had any financing in the past either.

My FICO last time I checked was around 735 but it's still a pretty short credit history. I have a lot of hard inquiries which dropped it down since I wasn't planning on buying an M3 until summer time when the next gen was suppose to come out but since it's not I thought I'd just settle for the current one.
$5K would cover taxes and inception fees on a M3 lease so $10K would be more than sufficient. Like I said, the dealer wants your business so they'll try their hardest to get you approved for the lease. Only one way to find out is by going to the dealer and getting a deal submitted. Are you in the market for the M3 now? PM me and I'll give you info for Danny at Circle BMW.
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      03-01-2012, 10:17 PM   #8
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Quote:
Originally Posted by jakc View Post
Do they check that based on how much I report for taxes? I work in the digital advertising industry with pretty long net terms and Q4 profits (biggest quarter) only show up for the following year so my annual salary is usually around half of what it really is.



I'm willing to put down $5-10K, will that be enough? This will be my first car lease and I have never had any financing in the past either.

My FICO last time I checked was around 735 but it's still a pretty short credit history. I have a lot of hard inquiries which dropped it down since I wasn't planning on buying an M3 until summer time when the next gen was suppose to come out but since it's not I thought I'd just settle for the current one.
most places if they want income proof they will want to see a current pay stub or they may take last years W2 since its so close.

if your leasing I would go for the least amount down. In which I just ordered mine and my sign and drive is like 1780$ MSRP was 76k
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      03-01-2012, 10:22 PM   #9
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In which I just ordered mine and my sign and drive is like 1780$ MSRP was 76k
Your lease payment is $1780/month? Damn.
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      03-01-2012, 10:25 PM   #10
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Quote:
Originally Posted by dadealus
Quote:
Originally Posted by jakc View Post
Do they check that based on how much I report for taxes? I work in the digital advertising industry with pretty long net terms and Q4 profits (biggest quarter) only show up for the following year so my annual salary is usually around half of what it really is.



I'm willing to put down $5-10K, will that be enough? This will be my first car lease and I have never had any financing in the past either.

My FICO last time I checked was around 735 but it's still a pretty short credit history. I have a lot of hard inquiries which dropped it down since I wasn't planning on buying an M3 until summer time when the next gen was suppose to come out but since it's not I thought I'd just settle for the current one.
most places if they want income proof they will want to see a current pay stub or they may take last years W2 since its so close.

if your leasing I would go for the least amount down. In which I just ordered mine and my sign and drive is like 1780$ MSRP was 76k
BMWFS will never approve a sign and drive lease for him
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      03-01-2012, 10:38 PM   #11
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Quote:
Originally Posted by Ghetto2315 View Post
$5K would cover taxes and inception fees on a M3 lease so $10K would be more than sufficient. Like I said, the dealer wants your business so they'll try their hardest to get you approved for the lease. Only one way to find out is by going to the dealer and getting a deal submitted. Are you in the market for the M3 now? PM me and I'll give you info for Danny at Circle BMW.
Yeah I plan on ordering and doing euro delivery sometime this month... I can't PM yet but I'll definitely shoot you one when I can, thanks!

Quote:
Originally Posted by dadealus View Post
most places if they want income proof they will want to see a current pay stub or they may take last years W2 since its so close.

if your leasing I would go for the least amount down. In which I just ordered mine and my sign and drive is like 1780$ MSRP was 76k
A problem with that is I run my own business consulting for other companies so I get multiple smaller checks per month and my income shows as 1099 MISC non-employee compensation and not a W2. But I think I have enough proof to work something out with the dealer. I'll just have to go and see.
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      03-01-2012, 10:44 PM   #12
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Your lease payment is $1780/month? Damn.
no, my out the door cost was 1780$.
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      03-01-2012, 10:49 PM   #13
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no, my out the door cost was 1780$.
So that's not a Sign & Drive if you paid $1,780 due at signing. A Sign & Drive is you paying not a single cent out of your pocket. Just your signatures.
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      03-01-2012, 11:24 PM   #14
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I suspect a good, steady income is also important - preferably a few years I think.

(in addition to a high enough income and significant cash flow).

OP, I don't understand. Why would your annual salary look like half what it really is.... wouldn't that even out after the first year? If part of your first year's income gets counted in your second year and so on?
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      03-02-2012, 01:02 AM   #15
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OP, I don't understand. Why would your annual salary look like half what it really is.... wouldn't that even out after the first year? If part of your first year's income gets counted in your second year and so on?
Yes you're correct, it should eventually even out but since I started this business 3 years ago with no past experience, I spent the majority of my profits back into the business learning what works and what doesn't rather than focusing on generating higher profits since it was enough for the bills I had to pay which was really all I wanted in the beginning. As time went on I spent it to build our infrastructure to handle higher volumes for clients and I would time it for the Q4 holiday season where I pretty much see most of the profits and revenue. So far we're more than doubling profits each year but I don't report that on taxes until the following year because of extended net terms on our payments.
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      03-02-2012, 07:45 AM   #16
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Yes you're correct, it should eventually even out but since I started this business 3 years ago with no past experience, I spent the majority of my profits back into the business learning what works and what doesn't rather than focusing on generating higher profits since it was enough for the bills I had to pay which was really all I wanted in the beginning. As time went on I spent it to build our infrastructure to handle higher volumes for clients and I would time it for the Q4 holiday season where I pretty much see most of the profits and revenue. So far we're more than doubling profits each year but I don't report that on taxes until the following year because of extended net terms on our payments.
I wish you luck OP, both for your car negotiations and business.
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      03-02-2012, 02:58 PM   #17
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Quote:
Originally Posted by jakc View Post
Yes you're correct, it should eventually even out but since I started this business 3 years ago with no past experience, I spent the majority of my profits back into the business learning what works and what doesn't rather than focusing on generating higher profits since it was enough for the bills I had to pay which was really all I wanted in the beginning. As time went on I spent it to build our infrastructure to handle higher volumes for clients and I would time it for the Q4 holiday season where I pretty much see most of the profits and revenue. So far we're more than doubling profits each year but I don't report that on taxes until the following year because of extended net terms on our payments.
I wish you luck OP, both for your car negotiations and business.
Thanks a lot!
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      03-02-2012, 03:10 PM   #18
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Call Ryan Amico at Steve Thomas BMW. He'll help you out with this perfectly. I'm getting my 2nd M3 from him next week Tell him Patrick sent ya.

In any case, it sounds like your down that you are willing to put and your score will get you the car. Again, call Ryan and he's a wiz at all this stuff and will also get you the best deal out there.
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      06-22-2012, 03:06 PM   #19
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Hey everyone, it has been a while since I last posted, so here's an update.

I went to Paul Miller BMW about two weeks ago to get a lease on a 2013. I said I can put 10K down and he estimated monthly payments to be around $900 on the configured car which was $75K. We went over my credit and was told it was good but didn't have a long enough history for the bank to allow the lease but that I would be fine with a co-signer. I get my mom's info for the co-sign and then a week later I get a call back saying the bank wasn't able to approve it either. I tried offering 15K down but it didn't seem to make much of a difference and now I'm out of options for the M3.

I'd much rather have an M3 than an S5/RS5, is there anything another dealership can possibly do for me differently to get me approved or will I just have to go with another car?

Last edited by jakc; 06-22-2012 at 03:14 PM.
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      06-22-2012, 05:59 PM   #20
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Hey everyone, it has been a while since I last posted, so here's an update.

I went to Paul Miller BMW about two weeks ago to get a lease on a 2013. I said I can put 10K down and he estimated monthly payments to be around $900 on the configured car which was $75K. We went over my credit and was told it was good but didn't have a long enough history for the bank to allow the lease but that I would be fine with a co-signer. I get my mom's info for the co-sign and then a week later I get a call back saying the bank wasn't able to approve it either. I tried offering 15K down but it didn't seem to make much of a difference and now I'm out of options for the M3.

I'd much rather have an M3 than an S5/RS5, is there anything another dealership can possibly do for me differently to get me approved or will I just have to go with another car?
why not just buy a used m3?

You can use that $15k downpayment and buy an '08 for under 40k?

That $15k down payment leaves about $25k to be financed.
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      06-22-2012, 06:15 PM   #21
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Does your Mom have good credit and make enough to cover entirely the lease should you not be able to pay a cent?

Banks are willing to lend too much usually. I'd be cautious about trying to get a new M if you've already been turned down under those conditions. Even if you could come up with a substantial increase to the downpayment, I think you'd be living too close to the edge.

An Audi RS isn't much less, is it?
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      06-22-2012, 06:20 PM   #22
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Not sure if you saw my thread in the other section, but my friend's dealer just took in a 09 E90 M3 Sedan with roughly 21K miles. PM me if you're interested in that. It's the same guy as I previously mentioned in this thread.
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