Question For Marv About VW & BMW Financing

[blackberry74]

Hi, Marv...can you give me an idea of what the credit tiers are for VS & BMW in terms of their financing? I've seen them talked about in terms of A, B, C or 1, 2, 3. Did this question make any sense at all to you?

[MarvBear]

A is good

C is not

 

1 is good

3 is not

 

Very similar to the tier breakdown posted in the bank rate sticky.

Usually those topmost tiers start arond 720-740 auto enhanced.

[blackberry74]

Yep, I know A & 1 are good. I'm more interested in the credit score ranges - I'll check out the sticky. Thanks!

[sean80439]

BMW pulled Experian and TU for me. They gave be the better rate based on TU. I was told I had a 721 Auto Enhanced from TU, but around 630 Auto for Experian. That was my personal experience from just last month. They gave me 2.9% for 5 years.

[seattlecredit]

BMW pulled Experian and TU for me. They gave be the better rate based on TU. I was told I had a 721 Auto Enhanced from TU, but around 630 Auto for Experian. That was my personal experience from just last month. They gave me 2.9% for 5 years.

 

Aside from scores, did they ask for any other documents?

 

Thanks!

[sean80439]

BMW pulled Experian and TU for me. They gave be the better rate based on TU. I was told I had a 721 Auto Enhanced from TU, but around 630 Auto for Experian. That was my personal experience from just last month. They gave me 2.9% for 5 years.

 

Aside from scores, did they ask for any other documents?

 

Thanks!

No they didn't ask for proof of income or anything. All they needed me to bring when I picked up the car was my down payment, which I tossed on a CC, and proof of insurance.

 

edit: I thought the whole process was very easy for BMW FS. I applied for a auto loan through NFCU and they wanted me to bring in a copy of the buy order, and wanted to charge me around 12% for a $25000 loan. I'm not sure if BMW FS is just looking to get new people in cars or what, but I was impressed by how simple everything was.

Edited March 12, 2010 by sean80439

[seattlecredit]

Thanks!

 

Did you have any negative marks on your reports? Or were they clean?

 

I am getting ready to either buy or lease an auto and I am doing my research so as to avoid unnecessary inqs. My TU FICO score should be in low 700s (hopefully, it will be even a bit higher in a month or so as my utilization improves). However, I do have some lates (30 and 60 days).

 

No sure what my auto-enhanced scores are as I have not started shopping yet.

 

Thanks again for the info.

Edited March 12, 2010 by seattlecredit

[sean80439]

Actually, yeah I had some negative marks, which was very strange that they got me approved. My reports are still in the process of being fixed. I did have two vehicles on the reports that happened to have been totaled, so they were paid by insurance, but the payment history was good on them, I think I had 1 30 day on one vehicle. Almost all of my negatives are 5-6 years old though, and about to drop off other than some stupid $66 collection for a water bill that I didn't even know I had. I should mention that all of my recent history in the past 2 years has been perfect.

Edited March 12, 2010 by sean80439

[seattlecredit]

BMW pulled Experian and TU for me. They gave be the better rate based on TU. I was told I had a 721 Auto Enhanced from TU, but around 630 Auto for Experian. That was my personal experience from just last month. They gave me 2.9% for 5 years.

 

This may be a stupid question. If BMW pulled both reports and saw that you had 630 Auto-Enhanced Experian score, wouldn't they automatically want to go with a lower score in determining your qualification, rate, etc?

 

I understand that if the finance manager/dealer sees two of your reports, they will attempt to pick the better one and shop it to lenders that would use that CRA.

 

But if it's a captive lender like BMW, wouldnt they work more like a credit card lender and deny you if they see a significantly lower score on one of your reports?

 

The reason I am asking is because I have a very low EXP score (mid-500s, several active COs) yet my TU and EQ are similar to yours. It would seem to me that if I get unlucky and the lender pulls EXP, I will automatically be denied no matter how high my TU/EQ scores are.

 

Could someone please clarify how the process works, especially with captive lenders (e.g. getting a loan/lease directly through BMW, Honda, GMC, Ford)?

 

Thanks a lot!

Edited March 13, 2010 by seattlecredit

[hinklesc]

BMW pulled Experian and TU for me. They gave be the better rate based on TU. I was told I had a 721 Auto Enhanced from TU, but around 630 Auto for Experian. That was my personal experience from just last month. They gave me 2.9% for 5 years.

 

This may be a stupid question. If BMW pulled both reports and saw that you had 630 Auto-Enhanced Experian score, wouldn't they automatically want to go with a lower score in determining your qualification, rate, etc?

 

I understand that if the finance manager/dealer sees two of your reports, they will attempt to pick the better one and shop it to lenders that would use that CRA.

 

But if it's a captive lender like BMW, wouldnt they work more like a credit card lender and deny you if they see a significantly lower score on one of your reports?

 

The reason I am asking is because I have a very low EXP score (mid-500s, several active COs) yet my TU and EQ are similar to yours. It would seem to me that if I get unlucky and the lender pulls EXP, I will automatically be denied no matter how high my TU/EQ scores are.

 

Could someone please clarify how the process works, especially with captive lenders (e.g. getting a loan/lease directly through BMW, Honda, GMC, Ford)?

 

Thanks a lot!

 

Just freeze EX. Let them pull the others.

[MarvBear]

Some lenders will bureau surf, some wont'

 

If you're not a victim of identity theft and freeze just one bureau, that's like waving a red flag in front of a bull.

 

Personally I would not advise that.

[sean80439]

Based on what the finance manager said at the BMW dealer, BMW FS goes off of the TU score. I think the reason I got both pulled was because the dealer pulled my credit as well a second time. I went to a dealer where I live at, got approved but they refused to work with me on a better price for the vehicle, so I went to another BMW dealer about 50 miles away. Since I was approved at the first dealer they had to run my credit a second time at the new dealer so it would show up in the system, which may be why they pulled EXP the second time. I checked my reports and I had an inq from BMW FS on both EXP and TU, but no inq's from the first dealer. So I think round one BMW pulled TU at the first dealer, and when I went to use that approval at the other dealer, since I got the TU rate, and they re-pulled it hit EXP that time. Since I was already pre-approved for the 2.9% with TU I was good to go. The inq's from the dealer on both was because I think they wanted to check if I was telling the truth about the pre-approval since I did it at different dealer initially and they couldn't pull it up in their system. I guess if I did it online or called BMW FS directly I could have went to any dealer without a second pull. I know that was really confusing. I will make a time chart below:

 

Thursday: Went to BMW in Colorado Springs, they ran my credit through BMW FS and it pulled TU only. Approved for 2.9%.

 

Friday: Dealer refused to negotiate price so I told them I'd think about it.

 

Saturday night: Arrived at BMW in Denver at around 430pm. Explained I had been pre-approved already for 2.9% by BMW FS when they ran my credit through in Colorado Springs. Their system wouldn't allow them to pull up the dealer approval since it went directly to the other dealer, so instead they told me if they ran me through again, BMW FS would spit out the same approval. For some reason BMW FS pinged EXP at this point. I believe BMW FS was closed at this point; it was close to 6pm mountain time. The Denver dealer ran my credit as well through TU and EXP to get the auto enhanced numbers so I got an inq from them on both EXP and TU. So I signed all the paperwork for the 2.9%, but I was still paranoid that it wouldn't go through for some reason. Manager explained that even though EXP was pulled, BMW FS goes off of the TU numbers.

 

Monday: Picked up car, no issues, paid the down payment.

 

3 weeks later: BMW FS is reporting on all reports as current.