[uhNexus]

Hey everyone.

A little background, I'm new to the US with a work visa. I have tier 1 credit with only 7 months of credit history. I own a home here without a mortgage. My M3 comp is sitting at the port and I'm trying to finalize financing.

BMW FS rejected my loan application at $20,000 down with the previously mentioned information considered, due to limited credit history. They said the only way they'll accept me without a co-signer is if I put 50% of the car's value as a down payment. Worst case scenario I will do that, however that's an absurdly high amount of money to put as a down payment on a car. I'm looking to pick up investment properties next year, and that amount of money is better spent as a down payment on a condo.

My question is, do you think there's wiggle room to aim for 35%-40% down if I threaten to go with a third party lender? Will BMW even allow me to use a third party lender/credit union? WWYD?

[Berzerker]

Up to you but the more you put down on a finance, the more you save in interest. I don't think 50% down is unreasonable and will save you a good amount of interest, especially at whatever interest rate you're going to get with limited history.

You can absolutely go with a 3rd party lender, but you can discuss with them if there's any wiggle room. Worst they'll say is no.

[kenzocan]

Up to you ^2 If you have to jump through hoops to get something it may not be meant for you *at that time*. Economy ain’t lookin so good either, may need that cash to stay flexible if shit hits the fan. Also wouldn’t additional leveraging reduce your chances of buying a condo?

[uhNexus]

Originally Posted by kenzocan

Up to you ^2 If you have to jump through hoops to get something it may not be meant for you *at that time*. Economy ain’t lookin so good either, may need that cash to stay flexible if shit hits the fan. Also wouldn’t additional leveraging reduce your chances of buying a condo?

My financial situation permits both this car, investment properties, and a decent rainy day reserve. My car payment will be low enough to keep my DTI ratio in a reasonable spot when it comes time to grab a property. I only have one US credit card open atm so adding a car payment will diversify my debt and further strengthen my credit score/history.

I can put $20,000 down or I can put $50,000 down if it really comes to it. I'd just rather not unload $50,000 all at once if I don't have to.

I do appreciate the words of wisdom though

[SoCalBimmerGuy]

Reach out to a local credit union near you. That would be my advice.

[Scrapula]

There are lots of ways to finance, but without a good credit history, you are looking at a higher interest rate. Look online to get some rates as a starting point, then plug those into a financial calculator and see how much interest you will be paying. That’s just money out the window. You can’t deduct it. I would put the $50k down. I have a 879 credit score and am putting about $40k down just because of the bad interest rates. You could also consider leasing the vehicle, then buying outright later on.

[BigPaultheOctopus]

Originally Posted by uhNexus

My financial situation permits both this car, investment properties, and a decent rainy day reserve. My car payment will be low enough to keep my DTI ratio in a reasonable spot when it comes time to grab a property. I only have one US credit card open atm so adding a car payment will diversify my debt and further strengthen my credit score/history.

I can put $20,000 down or I can put $50,000 down if it really comes to it. I'd just rather not unload $50,000 all at once if I don't have to.

I do appreciate the words of wisdom though

one thing to mention, when you purchase a investment property, the lender will look at your bank account and see if you have enough money to close the deal and CASH RESERVES...meaning if you have 100k sitting in your bank account and the property needs 100k to close the deal...the lender will most likely ask you for more money as cash reserves...they just want to see you have money sitting there as backup. Ignore this message if you are buying with cash...

[uhNexus]

Originally Posted by Scrapula

There are lots of ways to finance, but without a good credit history, you are looking at a higher interest rate. Look online to get some rates as a starting point, then plug those into a financial calculator and see how much interest you will be paying. That’s just money out the window. You can’t deduct it. I would put the $50k down. I have a 879 credit score and am putting about $40k down just because of the bad interest rates. You could also consider leasing the vehicle, then buying outright later on.

I asked the financial manager at the dealer to try for $40k. If not I think I'll just put $50,000 down to save on interest. Fingers crossed

[Needsdecaf]

Originally Posted by SoCalBimmerGuy

Reach out to a local credit union near you. That would be my advice.

Right. Or whoever has your accounts with all this cash. They can see your assets and your transaction history and should be a bit more understanding.