MBFS APPROVAL QUESTION

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jasgill
 
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MBFS APPROVAL QUESTION

Postby jasgill » Tue Jul 04, 2017 9:15 pm

Hi,

i want to lease a new CLS63S mercedes thru my company, the car price is $130,000 and im going to put down $50,000 as a down payment, my company sales exceed 1M Yearly, and my credit score is 660 but i only have 3500 in total credit which ive only used 2%. ive only been on the credit bureau for a couple years havent missed any payments. i do have a cosigner but his credit score is around 625 but has $72,800 in credit and only used 3% but missed 1 credit card payment last year febuary. with a $50,000 downpayment on a lease will it get approved thru Mercedes Benz Financial Services?


Tubpbs
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Re: MBFS APPROVAL QUESTION

Postby Tubpbs » Wed Jul 05, 2017 5:32 am

jasgill wrote:Hi,

i want to lease a new CLS63S mercedes thru my company, the car price is $130,000 and im going to put down $50,000 as a down payment, my company sales exceed 1M Yearly, and my credit score is 660 but i only have 3500 in total credit which ive only used 2%. ive only been on the credit bureau for a couple years havent missed any payments. i do have a cosigner but his credit score is around 625 but has $72,800 in credit and only used 3% but missed 1 credit card payment last year febuary. with a $50,000 downpayment on a lease will it get approved thru Mercedes Benz Financial Services?


When you lease a car, you don't pay the entire sticker price of the car. Before offering $50,000 down or a co-signer with a lower credit score, I would recommend going solo and trying to get approved for the car with a regular down payment. The car is a secured loan. If you don't pay, they can take it back. Obviously they don't want to do this, but it's certainly better than with a credit card where they can't take anything if you don't pay.

I would personally start there. I think you can get approved with a larger than normal down payment but I obviously don't work for MBFS. But I also don't think $50K is necessary.
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CarefulBuilder14
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Re: MBFS APPROVAL QUESTION

Postby CarefulBuilder14 » Wed Jul 05, 2017 11:22 pm

Tubpbs wrote:
jasgill wrote:Hi,

i want to lease a new CLS63S mercedes thru my company, the car price is $130,000 and im going to put down $50,000 as a down payment, my company sales exceed 1M Yearly, and my credit score is 660 but i only have 3500 in total credit which ive only used 2%. ive only been on the credit bureau for a couple years havent missed any payments. i do have a cosigner but his credit score is around 625 but has $72,800 in credit and only used 3% but missed 1 credit card payment last year febuary. with a $50,000 downpayment on a lease will it get approved thru Mercedes Benz Financial Services?


When you lease a car, you don't pay the entire sticker price of the car. Before offering $50,000 down or a co-signer with a lower credit score, I would recommend going solo and trying to get approved for the car with a regular down payment. The car is a secured loan. If you don't pay, they can take it back. Obviously they don't want to do this, but it's certainly better than with a credit card where they can't take anything if you don't pay.

I would personally start there. I think you can get approved with a larger than normal down payment but I obviously don't work for MBFS. But I also don't think $50K is necessary.

A 625 seems very low for someone with 3% utilization and one late from Feb 2016. Are you sure he doesn't have other credit problems?

I don't know much about cars or financing them. What is a more typical down payment on a $130k car?

Is it normal to expect a large loan based on a large down payment despite mediocre history? That could work with a mortgage, but I expect premium cars depreciate a lot faster than houses.
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rockyrock
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Re: MBFS APPROVAL QUESTION

Postby rockyrock » Fri Jul 07, 2017 9:01 am

Lease terms are fixed, in the end you will pay the exact same amount regardless of how much you pay up front. The only thing you change is your monthly payment amount. To keep this simple lets say a three year lease is $36k. You could pay that $36k up front and have no payments, put $18k down and make $500/moX36 or $1k/moX36. At the end of the day you have paid $36k.

You might save some $$ if you opt for a "single payment lease" option. This is paying the entire lease on the front-end, keep the car for the term (24/36/39/48 months) and turn it in or purchase it at the end of the term. You'll not likely save all that much money but will save the trouble of making a payment each month. In the long run you would most likely do better by only paying the minimum up front and investing the $50k or putting it in a separate account and making payments from it to build your credit.

One other lease item that can really get you is mileage. Standard mileage allowance is 15k/yr but they typically offer 10k, 12, 15k, 18, & 21k options. Always buy miles up front as you can most often get a refund for unused miles. Cost vary but you could prepay 15 cents/mile or post pay 25 cents/mile.

I could go on but this isn't a car forum lol. The most important factor when considering a lease is the dealer. Only work with reputable dealers and do your research prior to walking in the door. Unlike buying, in many cases the "cost" of the vehicle doesn't always need to be disclosed when leasing.

Good luck and remember: YMMV!
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TXviking
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Re: MBFS APPROVAL QUESTION

Postby TXviking » Sun Jul 09, 2017 4:28 pm

This is an expensive luxury car, so the requirements will be steeper than a typical car financing deal. Frankly, I suspect you will have a hard time buying a $130K car with a credit score in the 600s, whether you lease or finance, and even with security in the car. Mercedes is likely to see that as too big of a risk.

Also, a cosigner with a worse credit score than your own AND recent missed payments will hurt you, not help you.



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