[steve@codemybimmer]

Just wanted to know if there's minimum income requirements to lease a BMW 3 series.

My current E90 was purchased used so I never really financed or leased a car before. I'm planning to trade it in, it's a 2006 E90 325i with around 133,000km on it. Should I try to sell it privately before switching to a lease? I'm not sure how much trade in value the dealership will give for that.


I make about 43k a year and I have a up to date FICO score from Equifax of 813.

Also, do I have to pre-order one from my local dealership and leave some sort of deposit?

[Saintor]

Your FICO is very good and it is unlikely that you will be denied, despite I don't think that it is 'sane' to buy a car as expensive as your income. My own rule of thumb was the car value no more than 50% of annual income.

The general rule is that all your credit payments won't exceed 40% of your gross income, which is suicidal, IMO. This could be even in excess of 1000$/month in your case.

[steve@codemybimmer]

Originally Posted by Saintor

Your FICO is very good and it is unlikely that you will be denied, despite I don't think that it is 'sane' to buy a car as expensive as your income. My own rule of thumb was the car value no more than 50% of annual income.

The general rule is that all your credit payments won't exceed 40% of your gross income, which is suicidal, IMO. This could be even in excess of 1000$/month in your case.

I'm leasing the car as opposed to buying it and when I sell my current car, I will have a $10,000 - $12,000 deposit to lower the monthly payments on a four year lease. I've done the math and it looks like I'll be paying about $500 a month after tax and freight which is 20% of my gross income.

I've also looked into the 320i it seems like a huge downgrade from my current E90 325i. The $35,000 price tag isn't bad though with all those included features.

[justinnum1]

Originally Posted by Aritaurus

I'm leasing the car as opposed to buying it and when I sell my current car, I will have a $10,000 - $12,000 deposit to lower the monthly payments on a four year lease. I've done the math and it looks like I'll be paying about $500 a month after tax and freight which is 20% of my gross income.

I've also looked into the 320i it seems like a huge downgrade from my current E90 325i. The $35,000 price tag isn't bad though with all those included features.

I really hope you are not putting down 10k+ on a lease...put all that money invest and get a return on it...

[steve@codemybimmer]

Originally Posted by justinnum1

I really hope you are not putting down 10k+ on a lease...put all that money invest and get a return on it...

You're right. Having that cash on hand to invest with is a much better idea than throwing it all on a lease to save $150 a month. That's what I'll probably do.

[NeTWorKz]

What do they look at to get a lease approval? I recently started my own company and planning on using it as a tax-write off as well. It's not some multi-million dollar company lol so I don't exactly have steady income but making the payments should be no problem, have more than enough to buy the car out right but would rather lease(Tax-write off FTW!)

[Saintor]

Originally Posted by Aritaurus

I'm leasing the car as opposed to buying it and when I sell my current car, I will have a $10,000 - $12,000 deposit to lower the monthly payments on a four year lease. I've done the math and it looks like I'll be paying about $500 a month after tax and freight which is 20% of my gross income.

I've also looked into the 320i it seems like a huge downgrade from my current E90 325i. The $35,000 price tag isn't bad though with all those included features.

The problem of the 320i is that it "makes sense" (assuming you don't want that extra power) if you keep it basic. Add Xenon, sunroof, automatic and you are only 3K$ from a better equipped 328i.

I don't see how 500$/mo or 6K$ is 20% of your gross income since you said it was 43K$?

Another possibility with your available sum amount is to apply a good chunk of it (5-6K$) as 'multiple security deposits', so it will bring down the interest rate considerably.

[steve@codemybimmer]

Originally Posted by Saintor

The problem of the 320i is that it "makes sense" (assuming you don't want that extra power) if you keep it basic. Add Xenon, sunroof, automatic and you are only 3K$ from a better equipped 328i.

I don't see how 500$/mo or 6K$ is 20% of your gross income since you said it was 43K$?

Another possibility with your available sum amount is to apply a good chunk of it (5-6K$) as 'multiple security deposits', so it will bring down the interest rate considerably.

43k is my income before tax so I'm calculating by gross income. 20% is about right. Not sure about Quebec but we do get taxed quite a bit here in Ontario.

So the security deposits are something you can put down whenever during course of the lease?

[Saintor]

Originally Posted by Aritaurus

I'll be paying about $500 a month after tax and freight which is 20% of my gross income.

I understand that you meant of your NET income. Small detail.

So the security deposits are something you can put down whenever during course of the lease?

I don't think so. It would a complete new credit application, IMO.

[steve@codemybimmer]

Originally Posted by NeTWorKz

What do they look at to get a lease approval? I recently started my own company and planning on using it as a tax-write off as well. It's not some multi-million dollar company lol so I don't exactly have steady income but making the payments should be no problem, have more than enough to buy the car out right but would rather lease(Tax-write off FTW!)

lol I'm actually planning to do that as well since I'm going to do a import/export small business.

Don't they go by how many kms you use for business purposes? Not sure if you can actually write off the whole lease monthly payment.

[NeTWorKz]

Originally Posted by Aritaurus

lol I'm actually planning to do that as well since I'm going to do a import/export small business.

Don't they go by how many kms you use for business purposes? Not sure if you can actually write off the whole lease monthly payment.

Yeah, you can't write it all off. Well you can but than you'd have to use the car for strictly business. Writing off 20-40% for business use is better than nothing