[psperos]

I have a 335i ready to go, but the dealer is having trouble getting my lease approved by the bank because my income is less than what the car is actually worth. I have a crappy salary job, but i make more in investments, but i can't prove it income-wise. I'm still waiting to hear from the dealer as far as what to do, so hopefully things go OK.

has anyone else an issue like this and still go approved eventually? I really hope the dealer can work some magic. I explained to them my net worth is more than the car, and liquid capital is more than the total lease, but the dealer said if they tell the bank that , they will want a huge security deposit.

I have a felling this deal is going to fall through. Black saphire metalic, on coral red, manual, sports package, premium, navigation IN STOCK

hopefully i hear from them tomorrow.

[RiXst3r]

are you married? slap your wifes SSN on it...

[Chesmu]

besides your income, they are looking at your FICO score, outstanding debt, account values.

perhaps buying outright with a deposit?

[joebaggg]

i had the same problem.... stick with it, it took me 2 months.

[RiXst3r]

another problem is that since they have been "trying" to get you approved, that means that they probably have several inquiries on your credit now, which will lower your FICO score.

[darkcloud]

No offense but maybe you shouldn't be buying the car then. Or you should be in the process of filing your taxes, why don't you hand over a copy of that to prove your income is higher then normally seen.

[RiXst3r]

You can claim your investment income on the lease paperwork, under "other" as "self employed" as long as you can back it up with a printout of last years taxes.

Ussually income is not the problem... its mostly based on FICO score...
get your credit report, free once a year... www.annualcreditreport.com. If your score is lower than 670 on 2 of the 3 burues... then expect to have problems...

[bavarian19]

Maybe there is a reason for it... Either you need a better paying job, or its entirely possible that this car is not for you financially. I know that might be a tough pill to swallow, but that seems like the case...

[darkcloud]

Originally Posted by RiXst3r

another problem is that since they have been "trying" to get you approved, that means that they probably have several inquiries on your credit now, which will lower your FICO score.

That's the shitty part about the FICO scoring system. When you purchase something like a car or house by them checking out your credit it in turn lowers your credit for really no good reason.

[psperos]

no wife. I still live at home. i'm a cash monkey this is one of the reasons why my fico score is low... my credit is 603, mainly because i have never had mortgage and have only owned one car in my life ( financed jetta, trading it in, got it through a cosign )

I don't want to buy the car , i would rather lease it pay it slowly and beat the hell out of it for a few years and see what happens. Maybe buy it out half way down the road if its in good shape. If i buy it, or even finance half the cost and somehting hapens to the car, i'll devalue my cash too fast... basically i don't want my cash in the car. My income will cover the lease, i would rather risk wasting that.

joebaggg, 2 months? dont know if i can handle that!

[BuckJon]

When I bought my first car, I had a 2nd job in the "entertainment" industry and I just had to show proof of deposits to the bank to get my car. Don't you have some way to prove what you are making from your investments? I just had to show them a pattern of deposits that would make up for what my regular job lacked according to them.

[RiXst3r]

603? aint gonna be easy... good luck though... but most banks would not even consider giving you money without some crazy interest rates, or major down payments.

When I bought my first car, I was 20, and I had nothing but a cell phone reporting to my credit, but it was still 685.

I would suggest trying to figure out why exactly its at 603, because short history is not enough reason. If you can create a nice letter stating your financial status, and proving better credit than what your score shows, then make sure the bank has everything to back that up... then you might have a shot.

[BuckJon]

Does your income just cover the lease or cover the lease and everything else in life you need to pay for?

I don't think that score is so bad. I got my Audi with a score of 630. Nothing down on any car ever. I did buy it though and a lease is tougher to get from what I hear. If you really want it just try to buy it.

[darkcloud]

Originally Posted by RiXst3r

You can claim your investment income on the lease paperwork, under "other" as "self employed" as long as you can back it up with a printout of last years taxes.

Ussually income is not the problem... its mostly based on FICO score...
get your credit report, free once a year... www.annualcreditreport.com. If your score is lower than 670 on 2 of the 3 burues... then expect to have problems...

I claimed under "self employed" cuz I am but I wasn't really full time that way until June and I bought the car in August. My job before that was a shitty $8/hr job with the Cleveland Indians cuz I was trying to chase a dream that's really freaking hard to get and being paid $8/hr with a college degree just blows.

Anyways I think I mainly got approved so easily cuz my FICO score is top notch due to having credit cards and such since I was 16. I have the ability to go out and get approved for whatever I want w/o a co-signer.

[valeram]

Just buy it and put at least 20% down.

[psperos]

Originally Posted by bavarian19

Maybe there is a reason for it... Either you need a better paying job, or its entirely possible that this car is not for you financially. I know that might be a tough pill to swallow, but that seems like the case...

From the way the system works, its not for me financially but in real terms, somone making twice as much as me with rent expenses is more risky in my opinion.


I still need to hear what they say, but i think it will come down to me having to show some tax information on other assets from 2004-2005. It will be hard to show because i acutally posted a loss last year, more of my gains are from this year.

[psperos]

Originally Posted by BuckJon

Does your income just cover the lease or cover the lease and everything else in life you need to pay for?

I don't think that score is so bad. I got my Audi with a score of 630. Nothing down on any car ever. I did buy it though and a lease is tougher to get from what I hear. If you really want it just try to buy it.

my income can cover the lease and all my monthly expenses and i will still have a few 100 left over.

[darkcloud]

Personally I wouldn't go through all this trouble over a car. You're putting your FICO score which is essentially your buying power scale through the ringer just to get a BMW. Why not trade your Jetta in for something a little nicer but not so expensive and get the BMW next car around. You might be able to get the new M3 then instead of the 335i.

You're also putting a lot of trust in your investment which you just said had a loss last year. Who's to say you won't tank out the rest of the year? We sound kinda in similar situations, but a few $100's left over every month isn't gonna cut it. I have between 1-2k left over each month and I still feel like I want more left over. All this over a car just doesn't seem worth it.

[RiXst3r]

53 percent is ussually the magic number they want to see in the payment to income ratios... "a few 100 left over" might not be enough in their eyes.

I was in your same scenario when I bough my first house... I was only 19, had zero credit history, and the only possible way I got approved was to write up so much info to prove that I could do it, I felt like the loan guy knew all my darkest secrets... but in the end, i got the loan.

[valeram]

Originally Posted by psperos

From the way the system works, its not for me financially but in real terms, somone making twice as much as me with rent expenses is more risky in my opinion.


I still need to hear what they say, but i think it will come down to me having to show some tax information on other assets from 2004-2005. It will be hard to show because i acutally posted a loss last year, more of my gains are from this year.

If it was a loss last fiscal year then the bank will think that it is also a loosing investment. Just like you, when you invest in some stocks. High risk high gain...

[psperos]

Originally Posted by darkcloud

Personally I wouldn't go through all this trouble over a car. You're putting your FICO score which is essentially your buying power scale through the ringer just to get a BMW. Why not trade your Jetta in for something a little nicer but not so expensive and get the BMW next car around. You might be able to get the new M3 then instead of the 335i.

That to me sounds like the right thing to do. I think i wil let it go. If the dealer tells me im all set, then i'll go finalize the deal. if they say i need to go through hoops with security deposits to get it then ill just tell them to cancel it.

the M3 is a car i would not mind paying cash for, or putting down 30-40%, but not the 335.

[John 070]

Originally Posted by darkcloud

Personally I wouldn't go through all this trouble over a car. You're putting your FICO score which is essentially your buying power scale through the ringer just to get a BMW. Why not trade your Jetta in for something a little nicer but not so expensive and get the BMW next car around. You might be able to get the new M3 then instead of the 335i.

You're also putting a lot of trust in your investment which you just said had a loss last year. Who's to say you won't tank out the rest of the year? We sound kinda in similar situations, but a few $100's left over every month isn't gonna cut it. I have between 1-2k left over each month and I still feel like I want more left over. All this over a car just doesn't seem worth it.

I agree, this is a good example of what leasing is about. So many insist they lease because it's a wise way to manage their cash flow, but I suspect this example is part of the real motivation to do so...my .02. Nobody would go through this for an apartment rental, except maybe in Manhattan. Why do it for a rental of a 335?