[//M]

Hey guys, I ordered a 340i to lease. Quick question.

I'm a young guy but I have a very good job. Unfortunately I haven't really used my credit yet (aside from a credit card or two) I have perfect credit but no loans yet.

Obviously BMW wouldn't approve me for the lease by myself. I'm honestly only leasing the car for the credit, otherwise I would just buy it outright.

My CA advised my co signer to fill out the primary section and I fill out the co applicant...

Am I going to get as much credit benefit if I'm the co-signer not the primary?

I'd rather not have two hard pulls on my co signers report so I don't want to get denied the first time, but since I'm doing this for the credit it's imperative that I get the most out of this.

Anyone have experience with this?

[XRAVE]

Originally Posted by tifosielia

Hey guys, I ordered a 340i to lease. Quick question.

I'm a young guy but I have a very good job. Unfortunately I haven't really used my credit yet (aside from a credit card or two) I have perfect credit but no loans yet.

Obviously BMW wouldn't approve me for the lease by myself. I'm honestly only leasing the car for the credit, otherwise I would just buy it outright.

My CA advised my co signer to fill out the primary section and I fill out the co applicant...

Am I going to get as much credit benefit if I'm the co-signer not the primary?

I'd rather not have two hard pulls on my co signers report so I don't want to get denied the first time, but since I'm doing this for the credit it's imperative that I get the most out of this.

Anyone have experience with this?

You can be the primary and have the other person be the co signer.

If you financed the car you would also build credit. Buying a car cash is a terrible idea.

On another note, BMW looks at debt to income ratio. Unless you only have like 6 months of credit history, I don't see why they wouldn't approve you.

[//M]

Originally Posted by XRAVE

You can be the primary and have the other person be the co signer.

If you financed the car you would also build credit. Buying a car cash is a terrible idea.

On another note, BMW looks at debt to income ratio. Unless you only have like 6 months of credit history, I don't see why they wouldn't approve you.

Why would buying a car with cash be a terrible idea? If I have the money why pay several thousand more for it? In my case that reason would be for the credit looking forward towards a home purchase down the line, but otherwise why would it be a bad idea.

Buying something with someone else's money seems like a terrible idea to me.

[XRAVE]

Originally Posted by tifosielia

Why would buying a car with cash be a terrible idea? If I have the money why pay several thousand more for it? In my case that reason would be for the credit looking forward towards a home purchase down the line, but otherwise why would it be a bad idea.

Buying something with someone else's money seems like a terrible idea to me.

Interest rates are so low right now that money is basically free. Look at last months interest rate, .9% for 72 months. That isn't valid this month but I'm sure they still offer it for 36 months.

The reason you shouldn't pay cash is because your putting a huge Amount of money into something that loses 10% of its value almost over night. With a depreciating asset, you wanna put the least amount into it as possible.

Let's say you do 36 months at .9% Interest. Put 50k into some type of appreciating asset and you could easily make 3-5%. However 72 months is still better as in 36 months, you've turned 50k into 25k.

However, unless your plan is to keep to the car more than 5 years, leading is the best option all around. Less risk and less money upfront. Not only that but BMW has inflated residual rates, they basically are subsidizing part of the car. Currently, residuals are 64%. After taxes and everything, owning a 3 series after 3 years, you'd be lucky to get close to 64%. Probably close to 50% unless you have an M.

Hopefully that explains it.

[eluded]

Unless you work for one of the credit bureau's nobody really knows how it works. It's my understanding both peoples credit scores will be impacted. So you should see the benefit if she/he will cosign for you and if you were to default they will also go after your cosigner