Credit sucks. Will BMW let me pay lease in full in advance?

[BMWCali]

Here's the deal: As a result of what took place with the economy a couple of years ago, my credit took a nose dive. I'm looking into leasing a new E90 M3 before production stops this year, but there's no way BMW would approve a lease with my 500 something credit rating. Question is, what if I paid the lease in full upon signing the contract/or taking delivery? If the lease is $29K total over 36 months and I just pay all $29K upfront, will BMW give me the lease?

[NYCMCBM3]

I can't see why not

[Crazy Bimmer]

Whats the difference between paying upfront vs using that money as a downpayment on a lease?

Not trying to be a smartass, i really dont know how prepaying works.

[J08M3]

ask them, how would we know?

[arirochmann]

Originally Posted by BMWCali

Here's the deal: As a result of what took place with the economy a couple of years ago, my credit took a nose dive. I'm looking into leasing a new E90 M3 before production stops this year, but there's no way BMW would approve a lease with my 500 something credit rating. Question is, what if I paid the lease in full upon signing the contract/or taking delivery? If the lease is $29K total over 36 months and I just pay all $29K upfront, will BMW give me the lease?

You are probably much better off buying a car with that cash. Unfortunately the cheapest e90 M3 I could find online is $42.5k: http://bit.ly/mOa0X4. However, you should be able to find an M3 coupe for around that price as they are less rare.

[Templar]

I would have to agree with most people here. I would think you'd want to work on fixing your credit (i.e. lowering debt or getting rid of balances completely) before you lease another car.

If you're already there though, it might be a good idea to take on some debt and pay it off responsibly in order to start bringing the score back up. Your score will rise if they see you have debt but you're paying it off.

[Grail05]

if your going to put that much on a lease why not just buy it.

yes put that as a down.

oh and yes BMW OR OTHER FINANCE WILL SELL IT TO YOU WITH THAT KIND OF AMOUNT.

your rate might be around 6% + but with 30k down. your monthly aint too bad.

and start building your credit by paying off the finance..

[wwjd15]

It would not work not unless you have enough credit. That's the way it works.
If you can lease it, you can get a loan to buy it. If you can get a loan to buy it, you can lease it. The same.

[kibosh]

sound like the OP has the cash, but not the credit (implying that financially he is fine now, just his credit still sucks from a few years ago). I'm going to make the assumption that he doesn't want to purchase the car since otherwise he'd have just put like $15-20k down and be done with the conversation.

I think what he is asking, is if he can prove he has all the lease payments in cash, can he just pay them upfront and drive the car for three years. Then when the lease is up he can walk away, buy the car, trade up, etc...

I'm not sure it makes sense to do it this way since part of the lease payment includes interest due to deferred payments (so you are getting "overcharged" by paying in advance). However, I can't see BMWFS not taking your money. You might have to speak with someone directly at BMWFS rather than go through the dealer finance person to get that type of arrangement worked out.

[koxal]

even if you pay $39K upfront, they wont lease it to you..!

[chrischeung]

What happened to your credit? My credit score was not impacted at all by what happened with the economy. My understanding is that credit changes by what you do individually (or your spouse), and is not tied to how the economy is doing. I'd get it reviewed if you didn't do anything negatively. Naturally if the economy improves, that is not going to help your credit either.

[IrishCoffee]

It sounds to me like several people on here are trying to tell you how to spend your money. I don't know why.

My assumption is that your credit is screwed because you walked away from a house or something similar. I don't see how buying a car with your cash vs leasing it and paying for it ouright will fix or change your credit. If anything buying a car with cash won't help because you aren't using or building any credit history.

Some manufacturers will accept all payments right up front for a lease. The only thing that is dangerous about this is that if you total the car you will lose a sizeable chunk of change. That's why most people will use money up front for Multiple Security Deposits. However, with bad credit they prob won't loan you any money.

My advice is to talk to one of the sales associates on this message board or go to your dealer and ask these questions. This way you won't get the usual lease vs. buy arguments from people on here.... and you can avoid people crapping on you for having low credit.

[Grail05]

Originally Posted by koxal

even if you pay $39K upfront, they wont lease it to you..!

OH TRUST ME they will....

also other banks will finance as well with that much down. its no brainer...The bank will lease or finance it even with low credit score even with BK on your file.

[Grail05]

Originally Posted by cullan

Some manufacturers will accept all payments right up front for a lease. The only thing that is dangerous about this is that if you total the car you will lose a sizeable chunk of change.

this is the reason why i say finance it. better option in my opinion.

[koxal]

Originally Posted by Sean05

OH TRUST ME they will....

also other banks will finance as well with that much down. its no brainer...The bank will lease or finance it even with low credit score even with BK on your file.

I tried it buddy. I am not guessing. I had that experience in a different way.

Also there is no such a thing to pay the lease upfront in their (BMW) systems.

If you can get a co-signer, they will let you lease with regular payments. But co-signer has to be your either mother or father or sister/brother.

[status38]

If you prepay the lease like that and then someone T-bones you and totals your car you're out a ton of cash. If you finance it instead at least you'll get an insurance check.

[Grail05]

Originally Posted by koxal

I tried it buddy. I am not guessing. I had that experience in a different way.

Also there is no such a thing to pay the lease upfront in their (BMW) systems.

If you can get a co-signer, they will let you lease with regular payments. But co-signer has to be your either mother or father or sister/brother.

so you tried putting 30k down on a lease and they said no? if so you must have a repo or something that might give them not to make a deal.

like STATUS38 mentioned its stupid for the dealer to not to lease with that much down. If you get t bone the insurance will cut the check to the bank who lease the vehicle to.

[Grail05]

Originally Posted by status38

If you prepay the lease like that and then someone T-bones you and totals your car you're out a ton of cash. If you finance it instead at least you'll get an insurance check.

Exactly.

[koxal]

Originally Posted by Sean05

so you tried putting 30k down on a lease and they said no? if so you must have a repo or something that might give them not to make a deal.

like STATUS38 mentioned its stupid for the dealer to not to lease with that much down. If you get t bone the insurance will cut the check to the bank who lease the vehicle to.

OP says that he offered to pay the total lease amount. Not the amount for down payment.

by other words, lets say you put $10K down and your 3 years lease comes to $600 per month which makes a total of $31,600.00 for 3 years.

Op is asking if he pays $31,600 upfront, will they let him to lease the car?

Answer NO because, if he has bad credit, no matter what they wont lease it to you. Your only option is to buy the car.

This only goes to people who has not enough credit history / bad credit / no credit.

i know, it is totally stupid but you have to be approved by BMW first. Then you can negotiate the deal. if they dont approve ur credit, then u have no other option than buying the car.

[MangoConChile]

lol no way is that a good idea. if you total your car when you drive off the lot you are out 30k. i would spend the money on getting your credit repaired if possible, or get use e46

[335OK]

workout a 1 time payment lease deal with your dealer.
but ultimately, you still need to build it back up.

[Grail05]

Originally Posted by koxal

OP says that he offered to pay the total lease amount. Not the amount for down payment.

by other words, lets say you put $10K down and your 3 years lease comes to $600 per month which makes a total of $31,600.00 for 3 years.

Op is asking if he pays $31,600 upfront, will they let him to lease the car?

Answer NO because, if he has bad credit, no matter what they wont lease it to you. Your only option is to buy the car.

This only goes to people who has not enough credit history / bad credit / no credit.

i know, it is totally stupid but you have to be approved by BMW first. Then you can negotiate the deal. if they dont approve ur credit, then u have no other option than buying the car.

trust me they will i had a friend that lease a 2010 535 with less than 600 score and was approve paid close to 5k down.... also it depends on your finance ratio if you can afford the car or not. so not sure where your getting your info from but i know people that works at the dealers.

like i said it depends if you had a previous car loan that was not paid or repo. which will cause the dealer or you to get denied.

this is case by case not all low credit will get denied.