[chaserdreams]

Im going to the dealer soon to order a 2024 G82 M4. I was told I need to complete a credit application to see if I am even eligible to purchase the car and that it lasts 120 days. I was also told that build time is 4-5 months.

When I submit the credit application for them to put the order in, am I locked into that loan? Can I still reach out to other credit unions sooner to when my car will arrive in 4-5 month to get better rates? Even if I establish a specific down payment amount in the loan application with BMW FS?

Are BMW credit applications similar to credit card application in which you’re offered alternative loan amounts in the case they don’t approve the loan for your build? Or do they just flat out decline it?

Any help is much appreciated! I would love to know what to expect

[M4ord]

You can shop at as many lenders as you want. You can bring a pre-approval letter from a lending institution. You can apply in-house. They want you to use in-house lending because they get kickbacks. I am not sure if BMW Financial will keep a rate locked longer than 120 days, I doubt it.

The intent of this is for the dealer to have some validation that the customer can afford the car they want to order. Nothing worse for a dealer than some off-color exterior with an equally off-color interior color for a vehicle that has a limited customer base, to begin with.

I don't think there are alternative loan offers from BMW Financial or any other car loan applicatoin, it's either approved or not.

The best advice I can give you is to arm your self with information. Run a credit check, and apply at a local bank or credit union that will give you a competitive interest rate. The most advantageous for the dealer is for you to take in-house financing, even if it's not from BMW Financial.

When I ordered the car the dealer ran my credit and paid attention to the overall credit score to determine if I could order. After the car arrived, my credit was rerun and options from 4 different vendors were provided. This is on top of the credit application I had already secured before delivery. By the end, I had chosen a different lender with a lower interest rate. The dealer found this lower rate during delivery. So you can make it work out with a bit of homework.

Good luck and safe travels.

[bri1042]

Yow, that's not great. It's going to end up being two inquiries recorded on your credit report instead of one. Your score will likely be lower on the second pull due to the first inquiry.

Also, they're going to run the inquiry based on what you intend on putting down. They'll approve you for the stated amount or they won't, I think.

I've never been asked to allow a credit pull before the car was even ordered by BMW. They didn't ask my SO to do this, either.

[SpeedyATL]

Agreed, a credit pull just to order a car that I presume will require a deposit seems like a stretch to me as well.

However, an 'extra' credit pull will not have much effect on your score. Sure maybe a couple of points, but if you're in a spot that a couple of points changes your life, maybe a loan/lease on a $90+k car is not a great idea.

I'd certainly use this as a reason to shop for a different dealer, but if for some reason you are committed to this dealer, I wouldn't worry about it too much.

Also, yes you can shop around for other financing. You don't have to use BMWFS, even if they pull your credit twice.

[vj123]

Originally Posted by chaserdreams

Im going to the dealer soon to order a 2024 G82 M4. I was told I need to complete a credit application to see if I am even eligible to purchase the car

If your dealer is asking for a credit application to place the order, you should find a different dealer.

Originally Posted by chaserdreams

When I submit the credit application for them to put the order in, am I locked into that loan? Can I still reach out to other credit unions sooner to when my car will arrive in 4-5 month to get better rates? Even if I establish a specific down payment amount in the loan application with BMW FS?

Credit approval is valid for 90 days on east coast and 120 days for west coast post covid. It was 60 days and 90 days respectively pre covid. If you dont have any allocation, you will not take delivery within the timeframe and you might most likely need another credit application.

There are dealers who would allow third party financing and there a few who want people to do inhouse finance. So it depends on the dealer.

[vmoney89]

Personally, I would find another dealership. There are plenty, just make cold calls to see if they have allocation.

I just went through the process a couple months ago, there was a dealership in NJ that said their waitlist was 3 people, but to be part of the waitlist and put a deposit down, they need to run my credit prior. I called about 20 dealerships and they were the only ones to ask to run my credit before a deposit. If you're uncomfortable doing it, just call around. It's not the norm.

[M3Strube]

My dealer waited until the last day of the month AFTER my car was in production to try and lock in the rate. They will honor that rate or lower if it has gone down. Given current production times, if your car isn't in production, you will most likely be beyond the 120 day period and the rate wouldn't be honored. You shouldn't need to do a "can you afford it" application.

[jimbethesda]

Do they have an allocation for you? “Ordering” the car is a meaningless term.

Others have commented on the financing side. If you decide to let them run your credit ahead of time, tell them they can when they have an allocation and can give you your production number.

Otherwise, they are running your credit to be placed on a waiting list for an allocation which is ridiculous. There is no financial risk for them to put you on their waitlist.

['Cane]

Originally Posted by jimbethesda

Do they have an allocation for you? “Ordering” the car is a meaningless term.

Others have commented on the financing side. If you decide to let them run your credit ahead of time, tell them they can when they have an allocation and can give you your production number.

Otherwise, they are running your credit to be placed on a waiting list for an allocation which is ridiculous. There is no financial risk for them to put you on their waitlist.

This is the answer, if they want to run your credit, it's a no until they procure you an allocation. Even then it's not completely necessary, but a lot of dealerships will require it.

[bigrum]

I don't allow any dealer to touch my credit with an inquiry until we agree on price and I already know whether or not their interest rate is worth it.

BMW's rates seem terrible, I just looked and it is 8.29%, Bank of America I can get 5-6% as an example of many other lenders probably.

[projectme]

I’ve ordered 2 vehicles and was not required a credit check until the car arrived at two different dealerships. Maybe things have changed.

['Cane]

Originally Posted by bigrum

I don't allow any dealer to touch my credit with an inquiry until we agree on price and I already know whether or not their interest rate is worth it.

BMW's rates seem terrible, I just looked and it is 8.29%, Bank of America I can get 5-6% as an example of many other lenders probably.

Still showing 5.9% for me.

[chaserdreams]

Originally Posted by jimbethesda

Do they have an allocation for you? “Ordering” the car is a meaningless term.

Others have commented on the financing side. If you decide to let them run your credit ahead of time, tell them they can when they have an allocation and can give you your production number.

Otherwise, they are running your credit to be placed on a waiting list for an allocation which is ridiculous. There is no financial risk for them to put you on their waitlist.

I asked about an allocation over the phone and my client advisor told me he’d check with his boss to see what allocations are looking like for the ‘24 M4. He told me generally they get a few allocations every month. He got back to me with: “You would be number 2 in the order bank, should be here in possibly 4 or up to 5 months”

Would order bank mean allocation? Or wait list? I’m going in later today to work it all out as well.

[BzsBimmer]

Originally Posted by chaserdreams

I asked about an allocation over the phone and my client advisor told me he’d check with his boss to see what allocations are looking like for the ‘24 M4. He told me generally they get a few allocations every month. He got back to me with: “You would be number 2 in the order bank, should be here in possibly 4 or up to 5 months”

Would order bank mean allocation? Or wait list? I’m going in later today to work it all out as well.

Wait list

[chaserdreams]

I might be getting this wrong but is the credit application a full loan application? Or just a credit pull with me and my co-sign to see If I’m able to buy the car? I was told on the phone before they make an order they normally run a credit check.

Could I offer to pay the refundable $5,000 deposit instead of going through a credit app (a few points don’t matter I’m sitting at around 750 currently with my co-sign around 690 but has got 20+ years of mortgage and car loan history that has been fully paid off)

If I can go the refundable deposit route, does my co-signer need to be with me while I create the build?

[jimbethesda]

Originally Posted by chaserdreams

I asked about an allocation over the phone and my client advisor told me he’d check with his boss to see what allocations are looking like for the ‘24 M4. He told me generally they get a few allocations every month. He got back to me with: “You would be number 2 in the order bank, should be here in possibly 4 or up to 5 months”

Would order bank mean allocation? Or wait list? I’m going in later today to work it all out as well.

Wait list. If they don’t have a production number to give you, you don’t have an allocation.

[BzsBimmer]

Originally Posted by chaserdreams

I might be getting this wrong but is the credit application a full loan application? Or just a credit pull with me and my co-sign to see If I’m able to buy the car? I was told on the phone before they make an order they normally run a credit check.

Could I offer to pay the refundable $5,000 deposit instead of going through a credit app (a few points don’t matter I’m sitting at around 750 currently with my co-sign around 690 but has got 20+ years of mortgage and car loan history that has been fully paid off)

If I can go the refundable deposit route, does my co-signer need to be with me while I create the build?

That’s a lot for a deposit.
I’d really consider what this dealer is offering you versus calling around and getting better terms etc.

[vmoney89]

Originally Posted by BzsBimmer

That’s a lot for a deposit.
I’d really consider what this dealer is offering you versus calling around and getting better terms etc.

My deposit was $5000 too. But I got my production number right after putting it down. I had another at $1000 to get on waitlist which I've since canceled and been refunded for.

But OP - I wouldn't put $5000 down to be on a waitlist. If you're getting allocation right away, $5000 is fine imo.

[BzsBimmer]

Originally Posted by vmoney89

My deposit was $5000 too. But I got my production number right after putting it down. I had another at $1000 to get on waitlist which I've since canceled and been refunded for.

But OP - I wouldn't put $5000 down to be on a waitlist. If you're getting allocation right away, $5000 is fine imo.

Wow. I have never put that much down

[vmoney89]

Originally Posted by BzsBimmer

Wow. I have never put that much down

Yea, only a few dealerships asked for >$1k and this was one of them. I think one of the reasons is because I'm from out of state and I've never done business with them. But, I usually put a good chunk down when I purchase so I didn't mind especially since I was getting a production number right away.

[chaserdreams]

Originally Posted by vmoney89

My deposit was $5000 too. But I got my production number right after putting it down. I had another at $1000 to get on waitlist which I've since canceled and been refunded for.

But OP - I wouldn't put $5000 down to be on a waitlist. If you're getting allocation right away, $5000 is fine imo.

Yea that’s what I was thinking. Going there today so I’m gonna see what’s up. If I don’t get an allocation, I won’t be putting anything down or give fill out a credit app. Ill update what happens.

[vj123]

Originally Posted by chaserdreams

I might be getting this wrong but is the credit application a full loan application? Or just a credit pull with me and my co-sign to see If I’m able to buy the car? I was told on the phone before they make an order they normally run a credit check.

Could I offer to pay the refundable $5,000 deposit instead of going through a credit app (a few points don’t matter I’m sitting at around 750 currently with my co-sign around 690 but has got 20+ years of mortgage and car loan history that has been fully paid off)

If I can go the refundable deposit route, does my co-signer need to be with me while I create the build?

They might or might not apply for the loan with this credit check. I wouldnt let the dealer control this and would apply directly through BMW for any loan application.

Most dealers ask for $1000 deposit and my dealer didnt ask for any until the vehicle arrived.