I work for a Mercedes Dealer in Finance
12-17-2018, 12:45 PM
#176
Is it realistic to get lease financing with a recent foreclosure (on investment property - not primary residence) with a credit score of 672 after the foreclosure? What are recommended options in this scenario? Down payment, security deposits? Also, if I go to a different MB dealership to shop around, I assume that the credit app at the first dealership will apply. Or would I apply for credit again at the 2nd MB dealership?
if running credit for mb financial, your credit will be ran and it should be in the system. regardless which dealership you go to. just tell them it was already ran at a different location, considering you are shopping around within the same month should likely be no changes. I am pretty sure this is the way it works.
12-17-2018, 02:22 PM
#177
MBWorld Fanatic!
The 2nd dealership will run a new credit check and every time a check is run, it runs your credit score a tad lower. Thus the next credit check won't improve over the 1st. It's never advisable to put much money down on a leased car. If you have an accident, and the car is totaled, the money put down will not be recovered. You're in a difficult place. I'm sure a dealer will be able to finance something for you, but at not very favorable terms.
12-18-2018, 03:18 PM
#178
Hi, my car is about to run out of factory warranty on it, when I called dealership then were givng me a very high number, are there any room for negotiation if it does, what's room? or that is the final price?
12-18-2018, 04:13 PM
#179
12-19-2018, 06:34 AM
#180
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2002 C320
if running credit for mb financial, your credit will be ran and it should be in the system. regardless which dealership you go to. just tell them it was already ran at a different location, considering you are shopping around within the same month should likely be no changes. I am pretty sure this is the way it works.
Relevant Side Note: I left out the part above that I'm getting out of the rental property business. Sold anything with equity, and did strategic default on two that had negative equity. One was completely foreclosed and the other is still waiting for foreclosure to complete. It's complicated, but after lots of research I decided strategic foreclosure makes sense for me.
Now back to the MB finance guy . . . I explained to him what I was doing *after* my application was submitted. In hindsight, we should have sat down before he submitted it. Everything was straight down the fairway as far as my application was concerned (20+ years of credit lines with good payment history, low debt to income ratio). Only problem was, MB Financial Services has a bright-line rule against lease financing with an "active" foreclosure default in progress. First one is done and written off so it shows $0 on my credit. 2nd is still in progress, and they won't touch it until it's fully closed out and shows $0 on credit report. He said they had another borrower a few months ago with same situation (strategic default) and that's when the learned that MB won't touch those. If we had spoken before he would have told me not to submit application. Hindsight!
Of course all this could have just been made up nonsense and his way of being polite. Who knows? So now I'm looking at other options, or maybe hitting pause on the lease until after the foreclosure is complete and shows $0 on credit. BTW, he said the 672 credit score wasn't an issue -- for those worried about approval with a 672 credit score. Neither was the previous foreclosure because the other factors ($0 balance, credit history, and debt-to-income) were favorable. Hope this helps someone else in a default situation (strategic or otherwise).
12-19-2018, 05:17 PM
#181
Update -- Denied! LOL! I would have had to apply again at dealership #2 because they don't take applications submitted at other MB dealerships. I spoke to the finance mgr at MB dealership #1 to get the details.
Relevant Side Note: I left out the part above that I'm getting out of the rental property business. Sold anything with equity, and did strategic default on two that had negative equity. One was completely foreclosed and the other is still waiting for foreclosure to complete. It's complicated, but after lots of research I decided strategic foreclosure makes sense for me.
Now back to the MB finance guy . . . I explained to him what I was doing *after* my application was submitted. In hindsight, we should have sat down before he submitted it. Everything was straight down the fairway as far as my application was concerned (20+ years of credit lines with good payment history, low debt to income ratio). Only problem was, MB Financial Services has a bright-line rule against lease financing with an "active" foreclosure default in progress. First one is done and written off so it shows $0 on my credit. 2nd is still in progress, and they won't touch it until it's fully closed out and shows $0 on credit report. He said they had another borrower a few months ago with same situation (strategic default) and that's when the learned that MB won't touch those. If we had spoken before he would have told me not to submit application. Hindsight!
Of course all this could have just been made up nonsense and his way of being polite. Who knows? So now I'm looking at other options, or maybe hitting pause on the lease until after the foreclosure is complete and shows $0 on credit. BTW, he said the 672 credit score wasn't an issue -- for those worried about approval with a 672 credit score. Neither was the previous foreclosure because the other factors ($0 balance, credit history, and debt-to-income) were favorable. Hope this helps someone else in a default situation (strategic or otherwise).
Relevant Side Note: I left out the part above that I'm getting out of the rental property business. Sold anything with equity, and did strategic default on two that had negative equity. One was completely foreclosed and the other is still waiting for foreclosure to complete. It's complicated, but after lots of research I decided strategic foreclosure makes sense for me.
Now back to the MB finance guy . . . I explained to him what I was doing *after* my application was submitted. In hindsight, we should have sat down before he submitted it. Everything was straight down the fairway as far as my application was concerned (20+ years of credit lines with good payment history, low debt to income ratio). Only problem was, MB Financial Services has a bright-line rule against lease financing with an "active" foreclosure default in progress. First one is done and written off so it shows $0 on my credit. 2nd is still in progress, and they won't touch it until it's fully closed out and shows $0 on credit report. He said they had another borrower a few months ago with same situation (strategic default) and that's when the learned that MB won't touch those. If we had spoken before he would have told me not to submit application. Hindsight!
Of course all this could have just been made up nonsense and his way of being polite. Who knows? So now I'm looking at other options, or maybe hitting pause on the lease until after the foreclosure is complete and shows $0 on credit. BTW, he said the 672 credit score wasn't an issue -- for those worried about approval with a 672 credit score. Neither was the previous foreclosure because the other factors ($0 balance, credit history, and debt-to-income) were favorable. Hope this helps someone else in a default situation (strategic or otherwise).
01-02-2019, 07:49 PM
#182
Junior Member
Had some questions for you lease gurus out there.
1. I heard somewhere MBFS no longer offers MF reduction on auto pay. Is this still the case or is this incorrect? What MF reduction should I expect?
2. MSD. I think this financially makes senses as the reduction in payment far surpasses the interest paid on my Barclay Online Savings Account @ 2.20%, but wanted to hear from you folks out there who actually used it and how easy is to work with MBFS to get the money refunded to you after lease ends (provided I paid all in full at lease maturity)?
3. I plan on doing 10 MSDs and do dealers allow one to pay MSDs with credit card? Need them miles!!!!
4. Is it still 0.00006 MF Reduction for each MSD?
5. Are the dealers willing to work with you on early lease returns (i.e. waive remaining lease payment). have four payments to remaining and have had not an ideal outcome when trying to return my lexus early in the past.
6. If numbers do work out, I may sell it to Carmax. Does anyone know whether I'm still required to pay sales tax when selling at Carmax. I understand MBFS payoff quote doesn't include sales tax.
Thanks in advance!!!!
1. I heard somewhere MBFS no longer offers MF reduction on auto pay. Is this still the case or is this incorrect? What MF reduction should I expect?
2. MSD. I think this financially makes senses as the reduction in payment far surpasses the interest paid on my Barclay Online Savings Account @ 2.20%, but wanted to hear from you folks out there who actually used it and how easy is to work with MBFS to get the money refunded to you after lease ends (provided I paid all in full at lease maturity)?
3. I plan on doing 10 MSDs and do dealers allow one to pay MSDs with credit card? Need them miles!!!!
4. Is it still 0.00006 MF Reduction for each MSD?
5. Are the dealers willing to work with you on early lease returns (i.e. waive remaining lease payment). have four payments to remaining and have had not an ideal outcome when trying to return my lexus early in the past.
6. If numbers do work out, I may sell it to Carmax. Does anyone know whether I'm still required to pay sales tax when selling at Carmax. I understand MBFS payoff quote doesn't include sales tax.
Thanks in advance!!!!
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mike82212 (01-03-2019)
01-02-2019, 10:12 PM
#183
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Join Date: May 2018
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2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
1. I heard somewhere MBFS no longer offers MF reduction on auto pay. Is this still the case or is this incorrect? What MF reduction should I expect?
That is correct. When you lease there is no discount if you use auto pay.
2. MSD. I think this financially makes senses as the reduction in payment far surpasses the interest paid on my Barclay Online Savings Account @ 2.20%, but wanted to hear from you folks out there who actually used it and how easy is to work with MBFS to get the money refunded to you after lease ends (provided I paid all in full at lease maturity)?
You must run the numbers. I found that it did work. However MSD are not available in DC or NY.
3. I plan on doing 10 MSDs and do dealers allow one to pay MSDs with credit card? Need them miles!!!!
I put both the down payment ($500) and amount due on signing ($729) on my AMEX. See no reason why you should not be able to put the MSD on a credit card.
4. Is it still 0.00006 MF Reduction for each MSD?
Sorry do not know the answer.
5. Are the dealers willing to work with you on early lease returns (i.e. waive remaining lease payment). have four payments to remaining and have had not an ideal outcome when trying to return my lexus early in the past.
Check with Mercedes Financial. They were willing to waive my last payment.
6. If numbers do work out, I may sell it to Carmax. Does anyone know whether I'm still required to pay sales tax when selling at Carmax. I understand MBFS payoff quote doesn't include sales tax.
Have never dealt with Carmax. However, sales tax is usually required when you register the car - not when you sell the car. If you sold the car privately, the buyer when registering the car pays the sales tax. When you deal with a dealer, the dealer is authorized to collect the sales tax on behalf of the state. I assume Carmax takes your car and then resells it. If that is the case, when Carmax sells the car that is a taxable event and the sales tax is either paid by the buyer when he registers the car or collected by Carmax on behalf of the state.
Thanks in advance!!!!
That is correct. When you lease there is no discount if you use auto pay.
2. MSD. I think this financially makes senses as the reduction in payment far surpasses the interest paid on my Barclay Online Savings Account @ 2.20%, but wanted to hear from you folks out there who actually used it and how easy is to work with MBFS to get the money refunded to you after lease ends (provided I paid all in full at lease maturity)?
You must run the numbers. I found that it did work. However MSD are not available in DC or NY.
3. I plan on doing 10 MSDs and do dealers allow one to pay MSDs with credit card? Need them miles!!!!
I put both the down payment ($500) and amount due on signing ($729) on my AMEX. See no reason why you should not be able to put the MSD on a credit card.
4. Is it still 0.00006 MF Reduction for each MSD?
Sorry do not know the answer.
5. Are the dealers willing to work with you on early lease returns (i.e. waive remaining lease payment). have four payments to remaining and have had not an ideal outcome when trying to return my lexus early in the past.
Check with Mercedes Financial. They were willing to waive my last payment.
6. If numbers do work out, I may sell it to Carmax. Does anyone know whether I'm still required to pay sales tax when selling at Carmax. I understand MBFS payoff quote doesn't include sales tax.
Have never dealt with Carmax. However, sales tax is usually required when you register the car - not when you sell the car. If you sold the car privately, the buyer when registering the car pays the sales tax. When you deal with a dealer, the dealer is authorized to collect the sales tax on behalf of the state. I assume Carmax takes your car and then resells it. If that is the case, when Carmax sells the car that is a taxable event and the sales tax is either paid by the buyer when he registers the car or collected by Carmax on behalf of the state.
Thanks in advance!!!!
01-03-2019, 01:05 PM
#184
MBWorld Fanatic!
Update -- Denied! LOL! I would have had to apply again at dealership #2 because they don't take applications submitted at other MB dealerships. I spoke to the finance mgr at MB dealership #1 to get the details.
Relevant Side Note: I left out the part above that I'm getting out of the rental property business. Sold anything with equity, and did strategic default on two that had negative equity. One was completely foreclosed and the other is still waiting for foreclosure to complete. It's complicated, but after lots of research I decided strategic foreclosure makes sense for me.
Now back to the MB finance guy . . . I explained to him what I was doing *after* my application was submitted. In hindsight, we should have sat down before he submitted it. Everything was straight down the fairway as far as my application was concerned (20+ years of credit lines with good payment history, low debt to income ratio). Only problem was, MB Financial Services has a bright-line rule against lease financing with an "active" foreclosure default in progress. First one is done and written off so it shows $0 on my credit. 2nd is still in progress, and they won't touch it until it's fully closed out and shows $0 on credit report. He said they had another borrower a few months ago with same situation (strategic default) and that's when the learned that MB won't touch those. If we had spoken before he would have told me not to submit application. Hindsight!
Of course all this could have just been made up nonsense and his way of being polite. Who knows? So now I'm looking at other options, or maybe hitting pause on the lease until after the foreclosure is complete and shows $0 on credit. BTW, he said the 672 credit score wasn't an issue -- for those worried about approval with a 672 credit score. Neither was the previous foreclosure because the other factors ($0 balance, credit history, and debt-to-income) were favorable. Hope this helps someone else in a default situation (strategic or otherwise).
Relevant Side Note: I left out the part above that I'm getting out of the rental property business. Sold anything with equity, and did strategic default on two that had negative equity. One was completely foreclosed and the other is still waiting for foreclosure to complete. It's complicated, but after lots of research I decided strategic foreclosure makes sense for me.
Now back to the MB finance guy . . . I explained to him what I was doing *after* my application was submitted. In hindsight, we should have sat down before he submitted it. Everything was straight down the fairway as far as my application was concerned (20+ years of credit lines with good payment history, low debt to income ratio). Only problem was, MB Financial Services has a bright-line rule against lease financing with an "active" foreclosure default in progress. First one is done and written off so it shows $0 on my credit. 2nd is still in progress, and they won't touch it until it's fully closed out and shows $0 on credit report. He said they had another borrower a few months ago with same situation (strategic default) and that's when the learned that MB won't touch those. If we had spoken before he would have told me not to submit application. Hindsight!
Of course all this could have just been made up nonsense and his way of being polite. Who knows? So now I'm looking at other options, or maybe hitting pause on the lease until after the foreclosure is complete and shows $0 on credit. BTW, he said the 672 credit score wasn't an issue -- for those worried about approval with a 672 credit score. Neither was the previous foreclosure because the other factors ($0 balance, credit history, and debt-to-income) were favorable. Hope this helps someone else in a default situation (strategic or otherwise).
I would not finance you a bowl of soup. You scooped the equity on the good properties but screwed the lender on the bad ones. Too bad those mortgages were not recourse so the credit company could recoup their losses. Loans are made on character which you sadly lack. Take the bus or drive a beater.
The following 2 users liked this post by petee1997:
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01-03-2019, 05:04 PM
#185
Member
The better question is what is MBFS's policy for early returns, I believe it depends on the new vehicle being acquired. When I went from a C to an E I was told the current policy was MBFS would take the car up to 6 months early, I returned mine 4 months early and those remaining lease payments were waived by MBFS.
01-04-2019, 03:55 PM
#186
It's dealer policy as to the max they will allow you to put in a CC, my dealer had a max of $5k which covered some of my drive-offs and MSDs but not all.
The better question is what is MBFS's policy for early returns, I believe it depends on the new vehicle being acquired. When I went from a C to an E I was told the current policy was MBFS would take the car up to 6 months early, I returned mine 4 months early and those remaining lease payments were waived by MBFS.
The better question is what is MBFS's policy for early returns, I believe it depends on the new vehicle being acquired. When I went from a C to an E I was told the current policy was MBFS would take the car up to 6 months early, I returned mine 4 months early and those remaining lease payments were waived by MBFS.
THis is correct, depending on the promotion and which car you are jumping into next, they will waive either up to 6 mths or 3mths of the current lease. I think the OP might not have a BENZ tho? i think different brand..
01-11-2019, 10:19 PM
#188
Junior Member
As for MSD, is it pretty easy to get them back at maturity and of course, provided i paid all other fees?
01-11-2019, 10:39 PM
#189
MBWorld Fanatic!
Join Date: May 2018
Location: Long Island, NY
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2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
In New York and Washington, DC MSD by law are not permitted so I have no experience with them. However, I have been leasing for over 30 years and I have had nothing but wonderful experience at lease end - as long as the lease is with the manufacturer's financial arm.
My 2016 E350 came off lease in December and I replaced it with a 2019 E 450. The inspection was done at my home and at a time convenient to me. All scratches, etc. less than the length of a credit card were waived. I had not charges.
My prior lease was on a BMW 5 series. It was about 3,000 under mileage. At lease end there were charges of about $350. When I called up BMW Financial and pointed out that I was substantially under the mileage allowance, they waived the charges - even though I was not leasing another BMW.
My experience is that the financial arm of the manufacturer wants you back as a customer: I would anticipate no difficulty getting your MSD back at the end of the lease.
My 2016 E350 came off lease in December and I replaced it with a 2019 E 450. The inspection was done at my home and at a time convenient to me. All scratches, etc. less than the length of a credit card were waived. I had not charges.
My prior lease was on a BMW 5 series. It was about 3,000 under mileage. At lease end there were charges of about $350. When I called up BMW Financial and pointed out that I was substantially under the mileage allowance, they waived the charges - even though I was not leasing another BMW.
My experience is that the financial arm of the manufacturer wants you back as a customer: I would anticipate no difficulty getting your MSD back at the end of the lease.
01-18-2019, 01:38 PM
#190
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Jeep Wrangler Unlimted 4dr
Looking to finance a C-class Cabriolet
Hi there. Also a fabulous question! Thank you for asking it.
So I am going to work backwards on this one. MBFS (Mercedes-Benz Financial Services) uses Trans Union reports to determine credit acceptance. However other banks will use the other bureaus. So keep them all clean!
When a lender looks at someones credit for approval. They look at a many factors but I can keep it simple.
1. ADVANCE
2. DEBT LOAD
3. HISTORY
4. YOU (Ability to pay)
Almost in that order.
1) How much are you trying to borrow relative to the collateral. The more cash down or equity that you have in your new deal will greatly determine the risk level of the loan. i.e. if you are putting down 50% on your deal then if you fail to pay, the bank will win because of the equity position you have put them in. ON the other side, if you have a trade in that you are upside down in and are trying to finance 140% of the value of the car (invoice) then the bank will consider you to be far higher of a risk. Make sense?
2) Your own Debt load. Your "score" is mostly derived from your credit that you have available. If you are using more than 50% of your credit cards you are seen as a huge risk to the lenders. If your total outgoing payments are higher than 60% of your income then you are a huge risk to the lender. They will increase the rate to compensate.
3)History is very important. This is one thing that young people struggle most with. When it comes to an auto loan/lease the bank does not want to see anyone go from a Honda Civic loan to a Mercedes GT loan. In your case going from a FIAT to a P3 heads up 3d sound W213 E300 for 74000.00 might be a hard sale for the finance manager to make to MBFS. But, that being said.... I have done it. But it was usually done due to a provable job income increase or validation of liquidity of someones accounts. Cash down etc. Anything I could do to lower the risk in the banks eyes.
4) You... yep it all boils down to you. Your job, job type, who you are, if you are nice (Believe it or not this plays a huge part. I know personally that I have worked VERY VERY HARD for nice people. I will also admit that I have spent as little time as possible for ones that are totally rude or demanding) So be NICE!!! When you fill out your app, do it carefully. Take your time WRITE NEATLY. BE HONEST! Remember the finance guy needs to paint a good picture of you to the lender. ASK TO SPEAK WITH HIM/HER PRIOR TO SUBMITTAL. Make sure you tell them about how long you have been doing what you are doing, even if it is with different companies. Be honest and thorough with anything that is bad. Trust me with MBFS a story will go a long way.
Which leads me to the last part.... MBFS... They are one of the most amazing captive lenders I have ever EVER WORKED WITH in 22 years of doing this they are the first bank that ABSOLUTELY does NOT use the credit score to determine the tier. They truly want to support the dealers and help them to get the approvals they need to sell cars. So that being said, the fact that you are trying to do the right thing will go a long way.
MBFS will want to see that you can pay for the new car. They will want to see that the payment does not exceed 12-15% of your monthly income. They will want to see that they have some equity in the deal. They will want to see that you have not been pursuing large amount of credit prior to getting your new car.
Here are my suggestions to increase your odds of approval.
Cash down
Mitigate any negative equity from your trade
LEASE LEASE LEASE (MBFS will almost always give higher tiers on leases)
Keep your nose clean... =) NO LATE PAYMENTS
keep it real.... DONT GO LOOKING TO PURCHASE AN E43 IF YOUR LAST CAR WAS A FIAT. =) If you are going to go E class then keep it around 50K or PUT UP THE CASH TO KEEP THE AMOUNT FINANCED/Total Adjusted Cap cost AROUND 50K.
Good luck!!!! I hope this helps!
If you have any other questions send me a message and I can give you my cell phone number to discuss!
MB Finance Guy!
So I am going to work backwards on this one. MBFS (Mercedes-Benz Financial Services) uses Trans Union reports to determine credit acceptance. However other banks will use the other bureaus. So keep them all clean!
When a lender looks at someones credit for approval. They look at a many factors but I can keep it simple.
1. ADVANCE
2. DEBT LOAD
3. HISTORY
4. YOU (Ability to pay)
Almost in that order.
1) How much are you trying to borrow relative to the collateral. The more cash down or equity that you have in your new deal will greatly determine the risk level of the loan. i.e. if you are putting down 50% on your deal then if you fail to pay, the bank will win because of the equity position you have put them in. ON the other side, if you have a trade in that you are upside down in and are trying to finance 140% of the value of the car (invoice) then the bank will consider you to be far higher of a risk. Make sense?
2) Your own Debt load. Your "score" is mostly derived from your credit that you have available. If you are using more than 50% of your credit cards you are seen as a huge risk to the lenders. If your total outgoing payments are higher than 60% of your income then you are a huge risk to the lender. They will increase the rate to compensate.
3)History is very important. This is one thing that young people struggle most with. When it comes to an auto loan/lease the bank does not want to see anyone go from a Honda Civic loan to a Mercedes GT loan. In your case going from a FIAT to a P3 heads up 3d sound W213 E300 for 74000.00 might be a hard sale for the finance manager to make to MBFS. But, that being said.... I have done it. But it was usually done due to a provable job income increase or validation of liquidity of someones accounts. Cash down etc. Anything I could do to lower the risk in the banks eyes.
4) You... yep it all boils down to you. Your job, job type, who you are, if you are nice (Believe it or not this plays a huge part. I know personally that I have worked VERY VERY HARD for nice people. I will also admit that I have spent as little time as possible for ones that are totally rude or demanding) So be NICE!!! When you fill out your app, do it carefully. Take your time WRITE NEATLY. BE HONEST! Remember the finance guy needs to paint a good picture of you to the lender. ASK TO SPEAK WITH HIM/HER PRIOR TO SUBMITTAL. Make sure you tell them about how long you have been doing what you are doing, even if it is with different companies. Be honest and thorough with anything that is bad. Trust me with MBFS a story will go a long way.
Which leads me to the last part.... MBFS... They are one of the most amazing captive lenders I have ever EVER WORKED WITH in 22 years of doing this they are the first bank that ABSOLUTELY does NOT use the credit score to determine the tier. They truly want to support the dealers and help them to get the approvals they need to sell cars. So that being said, the fact that you are trying to do the right thing will go a long way.
MBFS will want to see that you can pay for the new car. They will want to see that the payment does not exceed 12-15% of your monthly income. They will want to see that they have some equity in the deal. They will want to see that you have not been pursuing large amount of credit prior to getting your new car.
Here are my suggestions to increase your odds of approval.
Cash down
Mitigate any negative equity from your trade
LEASE LEASE LEASE (MBFS will almost always give higher tiers on leases)
Keep your nose clean... =) NO LATE PAYMENTS
keep it real.... DONT GO LOOKING TO PURCHASE AN E43 IF YOUR LAST CAR WAS A FIAT. =) If you are going to go E class then keep it around 50K or PUT UP THE CASH TO KEEP THE AMOUNT FINANCED/Total Adjusted Cap cost AROUND 50K.
Good luck!!!! I hope this helps!
If you have any other questions send me a message and I can give you my cell phone number to discuss!
MB Finance Guy!
I am new to the forum but was researching on how Mercedes determines their approvals for financing. I see they have multiple specials for financing but am wondering what kinds of scores are needed for those different deals. I have a 647 transunion score with a 73k income. Just trying to see if I would even be in the ball park for financing. The car that I’m looking at will be around 60-65k without negotiating, that’s just an estimate. I’ll be putting 5-10k down payment and have my 2013 JEEP wrangler for trade in. I still owe $10,000 on it but I know they hold their value well. So I should have some equity in that. I would be a first time Mercedes buyer so just wanting to know if I would be in the ball park of being approved and at what APR rate estimate.
01-31-2019, 07:59 PM
#191
Newbie
Join Date: Jan 2019
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Transunion credit score and "to lease or not to lease"
Hi!
Just confirming MBF still uses Transunion for Fico Scores. If so, mine is 720. I have 12% credit utilization and 3 medical collections totalling $800 from the same hospital from 5 years ago that they will not remove. I've tried everything. Otherwise, perfect on-time payments for over 5 years. Employed full-time over 100K salary, 0 rent.
Question 1: Will I potentially qualify for the 2.99% loan at 60 months and is this also for 72 months? OR should I get pre-approved from somewhere else first? My credit score is under 700 with Equifax and Experian due to those collections.
Question 2: I work for a startup so I'm always trying to be careful in case my job goes away so I want the lowest payment that I can always pay more on monthly. I found a certified 2017 GLE for 37,000 that I love. Should I purchase or ask the dealer if they will lease it to me to get the payment even lower with an option to buy at the end?
Question 3: I really want the 2020 GLE but not sure when the release date is or what the lease offers will even be? The last dealer I spoke to in St. Louis said they will trickle in around June but in limited numbers. Google says different things like March/April...
THANK YOU so much for any feedback!!!!
Just confirming MBF still uses Transunion for Fico Scores. If so, mine is 720. I have 12% credit utilization and 3 medical collections totalling $800 from the same hospital from 5 years ago that they will not remove. I've tried everything. Otherwise, perfect on-time payments for over 5 years. Employed full-time over 100K salary, 0 rent.
Question 1: Will I potentially qualify for the 2.99% loan at 60 months and is this also for 72 months? OR should I get pre-approved from somewhere else first? My credit score is under 700 with Equifax and Experian due to those collections.
Question 2: I work for a startup so I'm always trying to be careful in case my job goes away so I want the lowest payment that I can always pay more on monthly. I found a certified 2017 GLE for 37,000 that I love. Should I purchase or ask the dealer if they will lease it to me to get the payment even lower with an option to buy at the end?
Question 3: I really want the 2020 GLE but not sure when the release date is or what the lease offers will even be? The last dealer I spoke to in St. Louis said they will trickle in around June but in limited numbers. Google says different things like March/April...
THANK YOU so much for any feedback!!!!
02-20-2019, 02:02 PM
#193
MBWorld Fanatic!
Join Date: Feb 2014
Location: MA
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2008 E350 4Matic, 2011 E350 4matic
02-25-2019, 06:51 PM
#194
Member
Hi there. Also a fabulous question! Thank you for asking it.
So I am going to work backwards on this one. MBFS (Mercedes-Benz Financial Services) uses Trans Union reports to determine credit acceptance. However other banks will use the other bureaus. So keep them all clean!
When a lender looks at someones credit for approval. They look at a many factors but I can keep it simple.
1. ADVANCE
2. DEBT LOAD
3. HISTORY
4. YOU (Ability to pay)
Almost in that order.
1) How much are you trying to borrow relative to the collateral. The more cash down or equity that you have in your new deal will greatly determine the risk level of the loan. i.e. if you are putting down 50% on your deal then if you fail to pay, the bank will win because of the equity position you have put them in. ON the other side, if you have a trade in that you are upside down in and are trying to finance 140% of the value of the car (invoice) then the bank will consider you to be far higher of a risk. Make sense?
2) Your own Debt load. Your "score" is mostly derived from your credit that you have available. If you are using more than 50% of your credit cards you are seen as a huge risk to the lenders. If your total outgoing payments are higher than 60% of your income then you are a huge risk to the lender. They will increase the rate to compensate.
3)History is very important. This is one thing that young people struggle most with. When it comes to an auto loan/lease the bank does not want to see anyone go from a Honda Civic loan to a Mercedes GT loan. In your case going from a FIAT to a P3 heads up 3d sound W213 E300 for 74000.00 might be a hard sale for the finance manager to make to MBFS. But, that being said.... I have done it. But it was usually done due to a provable job income increase or validation of liquidity of someones accounts. Cash down etc. Anything I could do to lower the risk in the banks eyes.
4) You... yep it all boils down to you. Your job, job type, who you are, if you are nice (Believe it or not this plays a huge part. I know personally that I have worked VERY VERY HARD for nice people. I will also admit that I have spent as little time as possible for ones that are totally rude or demanding) So be NICE!!! When you fill out your app, do it carefully. Take your time WRITE NEATLY. BE HONEST! Remember the finance guy needs to paint a good picture of you to the lender. ASK TO SPEAK WITH HIM/HER PRIOR TO SUBMITTAL. Make sure you tell them about how long you have been doing what you are doing, even if it is with different companies. Be honest and thorough with anything that is bad. Trust me with MBFS a story will go a long way.
Which leads me to the last part.... MBFS... They are one of the most amazing captive lenders I have ever EVER WORKED WITH in 22 years of doing this they are the first bank that ABSOLUTELY does NOT use the credit score to determine the tier. They truly want to support the dealers and help them to get the approvals they need to sell cars. So that being said, the fact that you are trying to do the right thing will go a long way.
MBFS will want to see that you can pay for the new car. They will want to see that the payment does not exceed 12-15% of your monthly income. They will want to see that they have some equity in the deal. They will want to see that you have not been pursuing large amount of credit prior to getting your new car.
Here are my suggestions to increase your odds of approval.
Cash down
Mitigate any negative equity from your trade
LEASE LEASE LEASE (MBFS will almost always give higher tiers on leases)
Keep your nose clean... =) NO LATE PAYMENTS
keep it real.... DONT GO LOOKING TO PURCHASE AN E43 IF YOUR LAST CAR WAS A FIAT. =) If you are going to go E class then keep it around 50K or PUT UP THE CASH TO KEEP THE AMOUNT FINANCED/Total Adjusted Cap cost AROUND 50K.
Good luck!!!! I hope this helps!
If you have any other questions send me a message and I can give you my cell phone number to discuss!
MB Finance Guy!
So I am going to work backwards on this one. MBFS (Mercedes-Benz Financial Services) uses Trans Union reports to determine credit acceptance. However other banks will use the other bureaus. So keep them all clean!
When a lender looks at someones credit for approval. They look at a many factors but I can keep it simple.
1. ADVANCE
2. DEBT LOAD
3. HISTORY
4. YOU (Ability to pay)
Almost in that order.
1) How much are you trying to borrow relative to the collateral. The more cash down or equity that you have in your new deal will greatly determine the risk level of the loan. i.e. if you are putting down 50% on your deal then if you fail to pay, the bank will win because of the equity position you have put them in. ON the other side, if you have a trade in that you are upside down in and are trying to finance 140% of the value of the car (invoice) then the bank will consider you to be far higher of a risk. Make sense?
2) Your own Debt load. Your "score" is mostly derived from your credit that you have available. If you are using more than 50% of your credit cards you are seen as a huge risk to the lenders. If your total outgoing payments are higher than 60% of your income then you are a huge risk to the lender. They will increase the rate to compensate.
3)History is very important. This is one thing that young people struggle most with. When it comes to an auto loan/lease the bank does not want to see anyone go from a Honda Civic loan to a Mercedes GT loan. In your case going from a FIAT to a P3 heads up 3d sound W213 E300 for 74000.00 might be a hard sale for the finance manager to make to MBFS. But, that being said.... I have done it. But it was usually done due to a provable job income increase or validation of liquidity of someones accounts. Cash down etc. Anything I could do to lower the risk in the banks eyes.
4) You... yep it all boils down to you. Your job, job type, who you are, if you are nice (Believe it or not this plays a huge part. I know personally that I have worked VERY VERY HARD for nice people. I will also admit that I have spent as little time as possible for ones that are totally rude or demanding) So be NICE!!! When you fill out your app, do it carefully. Take your time WRITE NEATLY. BE HONEST! Remember the finance guy needs to paint a good picture of you to the lender. ASK TO SPEAK WITH HIM/HER PRIOR TO SUBMITTAL. Make sure you tell them about how long you have been doing what you are doing, even if it is with different companies. Be honest and thorough with anything that is bad. Trust me with MBFS a story will go a long way.
Which leads me to the last part.... MBFS... They are one of the most amazing captive lenders I have ever EVER WORKED WITH in 22 years of doing this they are the first bank that ABSOLUTELY does NOT use the credit score to determine the tier. They truly want to support the dealers and help them to get the approvals they need to sell cars. So that being said, the fact that you are trying to do the right thing will go a long way.
MBFS will want to see that you can pay for the new car. They will want to see that the payment does not exceed 12-15% of your monthly income. They will want to see that they have some equity in the deal. They will want to see that you have not been pursuing large amount of credit prior to getting your new car.
Here are my suggestions to increase your odds of approval.
Cash down
Mitigate any negative equity from your trade
LEASE LEASE LEASE (MBFS will almost always give higher tiers on leases)
Keep your nose clean... =) NO LATE PAYMENTS
keep it real.... DONT GO LOOKING TO PURCHASE AN E43 IF YOUR LAST CAR WAS A FIAT. =) If you are going to go E class then keep it around 50K or PUT UP THE CASH TO KEEP THE AMOUNT FINANCED/Total Adjusted Cap cost AROUND 50K.
Good luck!!!! I hope this helps!
If you have any other questions send me a message and I can give you my cell phone number to discuss!
MB Finance Guy!
Hi currently own ‘15 S550 that I paid cash and didn’t finance. My recent auto loan was for my partner’s Tacoma. If I want to trade in the S550 and finance the remainder of ‘19 E class, will the trade up be from Tacoma or S550 for financing purposes. In other words, does paying cash for the S class work against me? (Btw, exceptional credit)
02-25-2019, 07:42 PM
#195
MBWorld Fanatic!
Join Date: Feb 2014
Location: MA
Posts: 6,074
Received 1,466 Likes
on
1,147 Posts
2008 E350 4Matic, 2011 E350 4matic
Hi currently own ‘15 S550 that I paid cash and didn’t finance. My recent auto loan was for my partner’s Tacoma. If I want to trade in the S550 and finance the remainder of ‘19 E class, will the trade up be from Tacoma or S550 for financing purposes. In other words, does paying cash for the S class work against me? (Btw, exceptional credit)
03-18-2019, 02:22 PM
#199
Junior Member
If anyone ever has any questions I am here to help answer them. I am not here to sell you anything, in fact I wont sell anything on here. But if you have any Mercedes Benz finance related questions I am here to help.
-Mercedes Finance Guy
PS... I just took delivery of my first Mercedes Benz! =) I am very happy!
-Mercedes Finance Guy
PS... I just took delivery of my first Mercedes Benz! =) I am very happy!
