[M3godz]

My brother has a deposit on a 2008 335i. It is a certified pre-owned car with about 47 000 KM. The total price including taxes is about 44K.

The colour combo is black on saddle brown interior. It has every option possible except for the comfort package.

My brother is making a base salary of about 47 000$ + comission (average of 65K) a year.

He tried to pass with BMW finance and the loan was declined based on not long enough credit history. He is 22 and had credit since he was 18. They are now requirng a co-signor. I cannot co-sign for him since i am buying a bigger house and will need to qualify for a bigger mortgage.



What can he do in term of contesting BMW finance decision ?

ps: The parents are out of town untill octobre so they cannot co sign either.

[Ctm309]

FedEx

[tiemedown]

More down payment?

[reaper335]

another family member? family friend? i was in the same boat although that price tag is a bit high imo. i had my aunt co sign for me

[doubleIN]

Doesn't he have a bank account somewhere? go get a loan from the bank and purchase the car

[reaper335]

wait till the new 3 series comes out and get a crazy deal on a used e90?

[kdphan]

44k does seem high for that year.

Local dealership by me offered a 2007 335i coupe with 43k miles + 100k miles CPO for $25,700.

I think the loan amount might be too high for $65k/salary

[John 070]

How much down is he putting? You cannot blame BMWFS, he's in essence attempting to purchase a car, used mind you, for an amount equal to his salary (bonus is not counted).

Why does he need to drive a 335i when he is 22? You don't have a mortgage interest deduction in Canada, which tells me you have to work even harder to own a home. Is he ready to enjoy the good life already?

[JunkStory]

Originally Posted by kdphan

44k does seem high for that year.

Local dealership by me offered a 2007 335i coupe with 43k miles + 100k miles CPO for $25,700.

I think the loan amount might be too high for $65k/salary

OP is in Canada. $44k with tax is fair.

Without extremely good credit, getting loans tough are tough now because of what happened to the economy. I know someone who also recently got declined a loan to buy a new SUV.

[Jayp0d]

They are probably looking at the base salary - commissions and bonuses are not gauranteed. Also, a 4 year credit history is somewhat short.

I believe they also ask for living expenses - like rent or mortgage. If he is only making $47K and paying $1000/mo rent, he will be putting himself in a tough situation regardless of whether he gets approved or not!

But, alas, opinions are only worth what you pay for them...

[jngjng72]

ah good ol Ottawa. Ogilvie Motors or Otto's?

Unfortunately BMW (or any lendor for that matter) doesn't just look at your income but also looks at your trend in expenses and any credit history. It can be a nightmare. I tried to co-sign a car loan for my father in law in Gatineau and wasn't able to do it because I live in the States and they wouldn't accept me as a co-signer, so I had to pay cash for him.

It would be pretty hard to get a loan for 44k given that his salary is 47k (ignore comissions since it is a floating amount). The only thing I can suggest is to put down a substantial down payment (which MAY show the lender you are more committed to satisfying the loan) or as everyone said, a cosigner.

Good luck!

[Saintor]

They are probably looking at the base salary

Exactly.

And he can thank them for refusing this.

With his salary, he shouldn't buy a car more than 25K$ taxes included. And this 335i is grossly overpriced even for Canadian market.

[AddictedToBavarian]

Been in almost that exact situation. My wife ended up co-signing.

[JunkStory]

Originally Posted by Saintor

And this 335i is grossly overpriced even for Canadian market.

How so? It's CPO'ed and fully loaded. $44k with taxes and everything works out to be $38k which is a fair price. I'm sure they've done their homework already.

I wish I could get a deal like that when I was shopping for my 335i.

[Taipei-TT]

Loans on a 2008. It does get a bit scary from both a lender and buyer perspective. The car has probably been on the road for 4 years...so if it is a 4 year finance....which might make the numbers more manageable...the car will be 8 years old when out of finance. That is probably playing into the decision too.

Perhaps consider a newer 328? Might work out better. Or hang on for a few more months with whatever he is driving now and go back for another car with more down payment.

[John 070]

Originally Posted by Taipei-TT

Loans on a 2008. It does get a bit scary from both a lender and buyer perspective. The car has probably been on the road for 4 years...so if it is a 4 year finance....which might make the numbers more manageable...the car will be 8 years old when out of finance. That is probably playing into the decision too.

Perhaps consider a newer 328? Might work out better. Or hang on for a few more months with whatever he is driving now and go back for another car with more down payment.

Never understood why people did that. imho everybody deserves a BMW. But everybody does not have the bank account to buy a BMW. So why doesn't everyone do themselves a favor and give themselves a bank account to buy a BMW? That's how it basically works imho. You want something, you do what it takes to get it.

I know with a house there is simply no exception, because we don't have leases on homes. Or at least we don't have that situation where when you lease or rent a home, you call it yours, the way that people do with car rentals.

Otherwise, why doesn't everyone who can buy a new 335is, which is nearly 60k new, buy a 4-5 y.o. Porsche instead? The reason is they cannot afford the Porsche. But we've seen people here on this forum go from a 3 to a Porsche, have we not? Not everyone of those people lease, certainly we must have had someone purchase a Porsche from this forum.

[Saintor]

Originally Posted by JunkStory

How so? It's CPO'ed and fully loaded. $44k with taxes and everything works out to be $38k which is a fair price. I'm sure they've done their homework already.

I wish I could get a deal like that when I was shopping for my 335i.

Easy... there are plenty of 2008 335i sub 50000km at BMW dealers at Quebec and most of them, the asked price is 38K$.... very ordinary price. In 2 years, he will have problems getting even 22K$. It can be easily more expensive than a new car!

38K$/55K$ ---> 70% of initial value after 3 years is too high when the lease residual is like 55% these days, maybe 60 because of low mileage.

[ABerry]

sux... I was 22 when I got my E92 (last year).. base salary is identical (in Oregon that salary is awesome), but no commission and I didn't need a cosignor but I probably have way more credit history

to be honest.. if you need a cosignor, just pass, get something that is cheaper man.. there is a reason the banks don't want to lend, even if you can't see it.. sure your making 65 with commission, but banks don't care about your commission, you're making 45k to them.. and what happens if you have a bad year, and just knowing all of my friends with sales jobs, if you have a bad year, or more likely a bad half year, your probably kicked out the door.. then your royally fked in the lending realm for the next 10 years of your life all because you wanted a car you couldn't afford

[M3godz]

Originally Posted by Saintor

Easy... there are plenty of 2008 335i sub 50000km at BMW dealers at Quebec and most of them, the asked price is 38K$.... very ordinary price. In 2 years, he will have problems getting even 22K$. It can be easily more expensive than a new car!

38K$/55K$ ---> 70% of initial value after 3 years is too high when the lease residual is like 55% these days, maybe 60 because of low mileage.

Try to find a 6MT fully loaded for less then 44K + tax here and lemme know lol