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      09-13-2010, 08:38 PM   #1
DefBringer
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BMWFS - How do they approve based on income?

I know different lenders use different formulas. Does BMW go as far as 20% of monthly gross that can go towards a lease payment? Or is it more like 15% or even 10%?

I own my home free and clear and have no debt and decent credit to boot.

I was approved for a 335i lease last year but I have heard that BMWFS's guidelines have changed and now I'm just curious how much car I should be shopping for.
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      09-28-2010, 07:25 PM   #2
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It's based on your credit score.
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      09-28-2010, 08:36 PM   #3
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Quote:
Originally Posted by DefBringer View Post
I know different lenders use different formulas. Does BMW go as far as 20% of monthly gross that can go towards a lease payment? Or is it more like 15% or even 10%?

I own my home free and clear and have no debt and decent credit to boot.

I was approved for a 335i lease last year but I have heard that BMWFS's guidelines have changed and now I'm just curious how much car I should be shopping for.
I'd suggest to shop for as much car as you can easily afford. Being a "car guy", I understand the temptations/self-justification process. Believe me...

But, that last thing you want to do is be "car-poor" - where you have the sick ride, but are skimping on dining out and other simple pleasures. A lot of people also find themselves "house-poor" after buying a McMansion that they really can't afford. It all comes down to each person's own understanding of their financial position. Considering the bigger, long-term picture is what it's all about.

Now, like I sort of disclaimed above, I'm definitely prone towards having a little more car than needed. But, in the end, it's your money. Make sure that you're happy with the way that you spend it.

Good Luck! I would think that I'm in a better place to decide if I'm able to afford something than some bank that only knows me via my credit report/score. Consider everything, cover all of your bases (twice) and I'm sure you'll make the right decisions.
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      11-01-2010, 03:18 PM   #4
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I think you need 650 score to be approved
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      02-12-2011, 11:49 PM   #5
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It is solely based on your credit score, you could put your annual income as 1 million a year it wouldn't matter. If your score is 400 with a million income denied, 750 credit score making 35k a year approved
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      06-20-2011, 10:19 PM   #6
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I was told when doing the paperwork for my wife's 328i lease that a score of 670 or higher is good enough for BMWFS.
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      07-29-2011, 12:41 AM   #7
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BMW FS has 3 tiers...

690+ for Elite rates (advertised rate)
660-689 - Progressive Plus rate (ad rate plus 1point)
620-659 for Progressive (ad rate plus 2 points)

Same concept for a lease.

As long as your PTI (payment to income) ratio is 15-20%, haven't repo'd a car within the last year, and a good finance manager... you will get approved.

Nice thing about BMW FS is that if you have a horrible score under 400, but haven't repo'd a car and you have a direct relative co-x for you, that qualifies (see above) you will be approved...

Good luck
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      07-29-2011, 02:02 PM   #8
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Quote:
Originally Posted by 335IS_Mineral View Post
BMW FS has 3 tiers...

690+ for Elite rates (advertised rate)
660-689 - Progressive Plus rate (ad rate plus 1point)
620-659 for Progressive (ad rate plus 2 points)

Same concept for a lease.

As long as your PTI (payment to income) ratio is 15-20%, haven't repo'd a car within the last year, and a good finance manager... you will get approved.

Nice thing about BMW FS is that if you have a horrible score under 400, but haven't repo'd a car and you have a direct relative co-x for you, that qualifies (see above) you will be approved...

Good luck

Does it apply to canadian clients as well ?
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      07-30-2011, 05:43 PM   #9
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Quote:
Originally Posted by M3godz View Post
Does it apply to canadian clients as well ?
No it does not... I have no idea what the Canadian BMW FS stipulations are...

If you are asking if a Canadian Resident come to US to lease a car... the answer is no.
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      07-30-2011, 07:23 PM   #10
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Make your you have a long credit history. Thats what killed me when doing my app.

My Credit score was over 750. Took out an auto loan in 2009 of 42,000 made payments till about March 2010 (about 12 months, then paid the loan off completely. Had less than a 10% debt to credit ratio. Never once late on previous loan, or credit cards and BMWFS denied me first shot. Being im 22 it was the length of my credit history not being long enough. Somehow my finance guy pushed it through tho.
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      07-30-2011, 07:26 PM   #11
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I was declined last year for lease takeover, I had 690-710 score at the moment
Financed through Chase with 6.5% apr
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      08-02-2011, 03:01 AM   #12
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The thing about BMW FS, they are a very loyal bank but if you slow pay them... your done with them... (make your payments on time people)
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