[Jblack4083]

I'm working on buying a used car to replace my E46. Being the age I am I did not get approved due to insufficient credit history. This was applying independently on my own on the bank's website. I've had credit for a few years now but I guess that's not enough.

If I walk into a dealership, do you think it will be easier to get approved (of course with a higher rate but thats okay). I just need the approval, the rate and payment are irrelevant.

[egtlover74]

BMW is now running 2.9 % finance on new cars.

[BriMc]

If payment and rate are irrelevant, I'll loan you the money at 2000% APR. Vig payable weekly or else!

Seriously though, pull your score, if its over 650 you should be ok. You probably won't get the 2.9 rate unless you are over 700, but they'll be able to do something decent for you.

If its under 650, don't borrow any money from anyone till you get it over that, its just not worth it, they'll bang you for 10% or more.

[Jblack4083]

Originally Posted by BriMc

If payment and rate are irrelevant, I'll loan you the money at 2000% APR. Vig payable weekly or else!

Seriously though, pull your score, if its over 650 you should be ok. You probably won't get the 2.9 rate unless you are over 700, but they'll be able to do something decent for you.

If its under 650, don't borrow any money from anyone till you get it over that, its just not worth it, they'll bang you for 10% or more.

I'm a little above 650 however I'm getting denied due to insufficient credit history although I have been making payments to multiple credit accounts since 2 years ago.

Can I also refinance at some point?

[Marcus-SanDiego]

Originally Posted by Jblack4083

I'm a little above 650 however I'm getting denied due to insufficient credit history although I have been making payments to multiple credit accounts since 2 years ago.

Can I also refinance at some point?

Do you have any experience with car payments? In other words, have you ever financed a car?

Auto lenders pull auto-enhanced FICO scores. More weight given to previous experience with auto financing. You're probably being dinged there a bit, too, if you have never financed a car before.

[sn0wwhite335]

Originally Posted by Jblack4083

I'm working on buying a used car to replace my E46. Being the age I am I did not get approved due to insufficient credit history. This was applying independently on my own on the bank's website. I've had credit for a few years now but I guess that's not enough.

If I walk into a dealership, do you think it will be easier to get approved (of course with a higher rate but thats okay). I just need the approval, the rate and payment are irrelevant.

the dealer can alter the amount of money youre financing, making it easier for you to get approved with a trade in.

[Chriztofor]

Originally Posted by Jblack4083

I'm working on buying a used car to replace my E46. Being the age I am I did not get approved due to insufficient credit history. This was applying independently on my own on the bank's website. I've had credit for a few years now but I guess that's not enough.

If I walk into a dealership, do you think it will be easier to get approved (of course with a higher rate but thats okay). I just need the approval, the rate and payment are irrelevant.

I went from e46 with 184,000 miles to an e90 with 48,000 miles (still under warranty) for $17,400. If you don't have credit, buy used and build up your credit. I bought used for a 1,000 other reasons.

[Jblack4083]

Originally Posted by Marcus-SanDiego

Do you have any experience with car payments? In other words, have you ever financed a car?

Auto lenders pull auto-enhanced FICO scores. More weight given to previous experience with auto financing. You're probably being dinged there a bit, too, if you have never financed a car before.

I've never had a car payment. I've been paying little stuff on a credit card and student loans for 2 years.

This is for a used car btw. And a 14,000 used E46 coupe at that.

[Chriztofor]

^ Opps, sorry didn't see the word USED.

[JuppiOne]

you can try different banks, if you are over 650, some banks are willing to give you a loan, although with the banking crisis lately, things got a bit tighter than it used to be. you can also go to BMW Bank (finance) web site, I think you can get a pre-approve there.

[chromisdesigns]

Find a credit union you are eligible for, and JOIN NOW! They will give you better rates than any bank, and probably make the loan for you, even as a new member. May not be as good as dealer promotional rates, but you probably won't get those either -- what you will get is a call back after you make the deal along the lines of "sorry, we couldn't qualify you for the best rate, but how about...". That is a call you don't want to get, believe me.

Credit unions are great -- why everybody doesn't belong to one is beyond me.

[lucas.kent]

Originally Posted by chromisdesigns

Find a credit union you are eligible for, and JOIN NOW! They will give you better rates than any bank, and probably make the loan for you, even as a new member. May not be as good as dealer promotional rates, but you probably won't get those either -- what you will get is a call back after you make the deal along the lines of "sorry, we couldn't qualify you for the best rate, but how about...". That is a call you don't want to get, believe me.

Credit unions are great -- why everybody doesn't belong to one is beyond me.

^ I second the credit union comment.

[BriMc]

Originally Posted by lkw15

^ I second the credit union comment.

I third it!

Credit Unions are your best bet.

The forums at FatWallet.com are a great source of info on this, heres a thread from today about Pentagon Federal Credit Union (penfed) offering auto loans at 2.99
http://www.fatwallet.com/forums/finance/1013949/

[kgb1637]

Your bank is also looking at your income as well, if you have a lower income and have bills to pay, they will want your payment to be lower to lower the chance of you not making a payment.

[Sara]

I went to the dealership when I was 18 and did not have enough credit history. My ass got denied for a car. I went back 2.5 years later and got approved through the dealership. At first the bank wanted a 5% interest rate on my loan. But instead I went through BMW North America Financial and got 0.9% interest.

[chromisdesigns]

Originally Posted by BriMc

I third it!

Credit Unions are your best bet.

The forums at FatWallet.com are a great source of info on this, heres a thread from today about Pentagon Federal Credit Union (penfed) offering auto loans at 2.99
http://www.fatwallet.com/forums/finance/1013949/

PenFed has had some great rates lately -- they are being very aggressive. And they will take ANYONE, even if you don't have any military or federal gov't connection, if you work for just about any federal contractor, you are good, otherwise just join the Military Family association for the minimum period, that qualifies you. Anyone can join, and you don't have to stay a member to keep PenFed membership, either.

We joined Navy Federal Credit Union years ago, one of the smartest financial decisions we ever made. Got our home mortgage from them, no fuss, no muss, no hassling with mortgage brokers.

Credit unions rule!

[Jlomb436]

Heya OP.

I'd recommend that you go with a credit union as well. Working at different financial institutions the last couple of years, banks are going to be a little tight. Penfed.org is a fantastic place to start, and if not there, try a local credit union.

I'd say a dealership would be easier to get approved, but by how much I couldn't tell you. Also, you need to make sure that your debt to income ratio is in line. If your credit score is 650ish, your probably looking at 42%. 700 or 740+ borrowers will typically allow 50%.

Take your rent/mortgage, credit card payments, car payments, etc and divide that number by your gross income. If that number is under 42%, your good to go.

Hope stuff works out, have fun shopping!

[WWONG]

I just purchased my 2010 335i Coupe last month. I'm 21.

Before shopping at the dealer I bought my car from, I went to Merecedes-Benz for a $55k E-Class coupe with a 20k down payment (so 35k loan) and the banks would not even bother with me. They called multiple banks and they all declined. I have the perfect credit score, but it's just with credit cards. I brought along my dad (which has terrible credit but excellent car payments with 4 cars being paid off already) to co-sign and the result was the same.

I went to the BMW dealership next door. They approved me but they gave me a 3.9% interest rate on a 328i Coupe. Troll'd.

I finally went to a different and larger BMW dealership in downtown. With my dad as a co-signer, they approved me with 1.9% interest for a 335i and 15k down.

So basically, shop around. Some dealerships will try to troll you, but the trick with buying a car is patience. BMW is one of the better brands to deal with, as they have their own bank. Avoid outside banks because they will screw you with interest. 1.9% interest on a 50k car over 5 years is almost $2,000. They'll probably give you a 4-5% interest rate, which is in the grand scheme of things... almost 5k, or probably <10% the value of your car (which depreciates per miles!). Not worth it IMO.

EDIT: BTW, they were all 5 yr loan applications

[John 070]

I believe the dealership has some power with various banks. They told me no matter what rate I can get from my credit union, they will beat it. At the time, in Dec. '06, I got 5.5% from my credit union (sounds like a joke but Capital One was like 6.5% at the time), and they went lower assigning me to BoA. When the rates fell I just paid the car off around 35 mos., though I coulda done it a year sooner. I let money sit doing nothing at 2.5% as a security blanket. Funny, I've never missed the security blanket but people are funny that way....

[Jblack4083]

Originally Posted by chromisdesigns

Find a credit union you are eligible for, and JOIN NOW! They will give you better rates than any bank, and probably make the loan for you, even as a new member. May not be as good as dealer promotional rates, but you probably won't get those either -- what you will get is a call back after you make the deal along the lines of "sorry, we couldn't qualify you for the best rate, but how about...". That is a call you don't want to get, believe me.

Credit unions are great -- why everybody doesn't belong to one is beyond me.

I'm not a federal or state employee. I actually work for a dealership myself.

[mike-y]

is it possible to pay off one of those credit cards? showing that you have paid off outstanding debts does a lot for your rating. Conversely, having a high number of open accounts may raise a red flag for some institutions.

[bmrm396]

ya but credit cards are all "unsecured debt" - the dealers probably shunning him because he has no history of security debt or collateral debt ... previous car payments, a mortgage, etc

anyway good luck dude, i was in the same position as you once i had to bring my dad to co-sign as a friggin formality basically ... bought a house few years later then went back for another car and had no problems

youll work it out