BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > M3 (E90 / E92 / E93) > New and Preowned M3 Pricing, Ordering, Tracking / European Delivery / Dealer Reviews
 
Post Reply
 
Thread Tools Search this Thread
      04-29-2020, 12:29 PM   #1
jamba
Captain
jamba's Avatar
Philippines
141
Rep
736
Posts

Drives: M3 E90 Jetblack
Join Date: Oct 2013
Location: WA

iTrader: (4)

Garage List
2009 BMW E90 M3  [0.00]
Banks that finance vehicle for more than KBB

I'm not really sure where else to ask this so I'll post here.

I have a buyer lined up for my car, but he wants to finance most of it. Since I am selling for pretty much double MSRP due to mods (Harrop, BBK, Suspension, etc), the credit union that he was working will approve him for the amount but not my car since they don't mess with vehicles that are modified.

That said, does anyone have any experience with other lenders?
__________________
check out my YouTube feature film:
Appreciate 0
      04-29-2020, 12:49 PM   #2
Bpark1977
Second Lieutenant
Bpark1977's Avatar
United_States
123
Rep
254
Posts

Drives: E93 M3
Join Date: Mar 2012
Location: Orange county, ca

iTrader: (0)

Quote:
Originally Posted by jamba View Post
I'm not really sure where else to ask this so I'll post here.

I have a buyer lined up for my car, but he wants to finance most of it. Since I am selling for pretty much double MSRP due to mods (Harrop, BBK, Suspension, etc), the credit union that he was working will approve him for the amount but not my car since they don't mess with vehicles that are modified.

That said, does anyone have any experience with other lenders?
He's more than likely going to need to get a personal loan and then buy it.
You need to look at it from the banks POV. If there is a default on the payments they need to know that they can EASILY get their money back. While, to the car community, your car may be worth X amount of dollars...not so to the bank.
One can argue all day about "its worth this, these mods cost X, you can easily sell it for X" and the bank reply will always be "if it was so easy to sell at that price, you wouldn't need a bank loan".
Any established lender is always going to cover their ass and there just isn't data comprehensive enough for it to be worth it for them.

There may be some lender out there who will take the loan but I guarantee there will be a huge down required, some exorbitant fees, and a stupid high interest rate.

From my experience, a serious buyer of a highly modded car wouldn't need the sellers help finding a loan. Ymmv of course.
Appreciate 0
      04-29-2020, 12:51 PM   #3
Bpark1977
Second Lieutenant
Bpark1977's Avatar
United_States
123
Rep
254
Posts

Drives: E93 M3
Join Date: Mar 2012
Location: Orange county, ca

iTrader: (0)

Honestly you'd probably find it easier to return it to stock and sell the parts.
Appreciate 0
      04-29-2020, 01:00 PM   #4
SAMM3Y
Lieutenant Colonel
SAMM3Y's Avatar
1567
Rep
1,768
Posts

Drives: 2008 m3
Join Date: Feb 2018
Location: NorCal

iTrader: (1)

I would imagine first you'd have to have the car appraised through someone like AAG. Then have it financed and insured through a classic car credit company.
__________________
9ers
Appreciate 0
      04-29-2020, 01:20 PM   #5
BayE30
Lieutenant Colonel
United_States
1261
Rep
1,866
Posts

Drives: 2011.75 E90 M3 ZCP
Join Date: Jul 2014
Location: San Francisco

iTrader: (5)

Sounds like buyer needs to nut-up and put enough down payment to cover the delta between selling price and KBB.
__________________
I am never able to post pictures on forums, all my pics are on IG @baye30 https://www.instagram.com/baye30/
Current Garage - [2011 E90 M3 ZCP] [2005 E53 X5 3.0 Sport] [1988 E30 325IS 24V]
Appreciate 2
Bpark1977123.00
IanMan337.50

      04-29-2020, 02:55 PM   #6
mikejnc
Private
United_States
18
Rep
67
Posts

Drives: 09 AW E90 M3, 16 XC90 R Design
Join Date: Jun 2017
Location: Rancho Cucamonga, CA

iTrader: (1)

Someone mentioned Lightstream to me before. Apparently, their used car loan process is different... It's more like a personal loan. They deposit the money into your bank, you buy the car from whomever, you keep the pink slip... The downside is the interest rate seems higher.

Since it's more like a personal loan and not a lien against the vehicle, I don't think the car's value matters as much.

Might want to verify this info though as I don't have firsthand experience on it. The guy that mentioned it to me was trying to purchase an e9X M3 and put the cost of repairs (rod bearings, throttle actuators, etc.) into the loan, so it would be more than the vehicle's worth.
Appreciate 0
      04-29-2020, 04:12 PM   #7
jamba
Captain
jamba's Avatar
Philippines
141
Rep
736
Posts

Drives: M3 E90 Jetblack
Join Date: Oct 2013
Location: WA

iTrader: (4)

Garage List
2009 BMW E90 M3  [0.00]
Quote:
Originally Posted by mikejnc View Post
Someone mentioned Lightstream to me before. Apparently, their used car loan process is different... It's more like a personal loan. They deposit the money into your bank, you buy the car from whomever, you keep the pink slip... The downside is the interest rate seems higher.

Since it's more like a personal loan and not a lien against the vehicle, I don't think the car's value matters as much.

Might want to verify this info though as I don't have firsthand experience on it. The guy that mentioned it to me was trying to purchase an e9X M3 and put the cost of repairs (rod bearings, throttle actuators, etc.) into the loan, so it would be more than the vehicle's worth.
yeah - I read about this too when I searched the internet. I'm going to mention it to the buyer. thanks
__________________
check out my YouTube feature film:
Appreciate 0
      04-29-2020, 06:08 PM   #8
e90m3808
Enlisted Member
39
Rep
45
Posts

Drives: 2011 E90 M3
Join Date: Jul 2019
Location: Hawaii

iTrader: (0)

If he's military, usually Navy Fed/Pen Fed will do a higher % over book value. Most banks cap out at 120% of book value (i.e. if book value is $10k, approval for $12k). In this case if your sale price is double book there's a 0% chance he will get approved unless he puts enough down to get close to 120%, and thats assuming top tier credit. Never used lightstream, but if he doesn't get approved there I'd just convince him to fork up the down payment. It doesn't make sense either, high rate financing what I'm assuming is $~45k. would be like $15k finance charge. Screw that.
Appreciate 0
      04-30-2020, 11:28 AM   #9
Ab28
Lieutenant
408
Rep
585
Posts

Drives: .
Join Date: Jan 2017
Location: .

iTrader: (3)

Definitely Lightstream or PenFed.

They normally loan out based on income and credit.

It shouldn't matter that the car is over book value with them.


And not that it matters but hope the buyer has some funds on the side because even if your car is perfect, things can break!
Appreciate 0
      05-01-2020, 12:52 PM   #10
WWM3
Major
WWM3's Avatar
341
Rep
1,406
Posts

Drives: 2018 M3 ZCP 6MT
Join Date: Mar 2009
Location: PA

iTrader: (9)

Quote:
Originally Posted by Ab28 View Post
Definitely Lightstream or PenFed.

They normally loan out based on income and credit.

It shouldn't matter that the car is over book value with them.


And not that it matters but hope the buyer has some funds on the side because even if your car is perfect, things can break!
PenFed uses NADA guide for their loan decisions to my knowledge but I do not know if exceed 100% of a given value.
__________________
Past: 1999 M3 2003 M5 2006 330i 2007 335i 2009 M3
Appreciate 0
      05-01-2020, 01:31 PM   #11
Ab28
Lieutenant
408
Rep
585
Posts

Drives: .
Join Date: Jan 2017
Location: .

iTrader: (3)

Quote:
Originally Posted by WWM3 View Post
PenFed uses NADA guide for their loan decisions to my knowledge but I do not know if exceed 100% of a given value.
Hmm, has it always been that way?

My cousin bought (borrowed) a heavily modded Mustang for well over book value and that never even came up.

I suppose it can be case by case depending on the borrower.
Appreciate 0
      05-01-2020, 01:38 PM   #12
WWM3
Major
WWM3's Avatar
341
Rep
1,406
Posts

Drives: 2018 M3 ZCP 6MT
Join Date: Mar 2009
Location: PA

iTrader: (9)

Quote:
Originally Posted by Ab28 View Post
Quote:
Originally Posted by WWM3 View Post
PenFed uses NADA guide for their loan decisions to my knowledge but I do not know if exceed 100% of a given value.
Hmm, has it always been that way?

My cousin bought (borrowed) a heavily modded Mustang for well over book value and that never even came up.

I suppose it can be case by case depending on the borrower.
You could be right. Maybe they changed their policy. Either way I know for certain that they previously utilized NADA guide for the basis of their auto value decisions.
__________________
Past: 1999 M3 2003 M5 2006 330i 2007 335i 2009 M3
Appreciate 1
Ab28408.00

Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 03:45 PM.




m3post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2020, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST