# Leasing in business name



## jlstone (Sep 7, 2006)

Has anyone leased a BMW in a business name for ED?

My dealer thinks it's going to be a problem!


----------



## beewang (Dec 18, 2001)

Nah... its not a problem... people have done it before. Get a dealer who is familiar w/ ED and perferbly a board sponsor.


----------



## Newman (Mar 3, 2007)

Actually, just did it myself. The only additional information required by my guy was my articles of incorporation, tax id number, how long in business and year when established. Went through without a hitch.

~David


----------



## boothguy (Feb 1, 2007)

I also did it - not a problem at all. You might also need a document that shows a resolution by your business to lease the vehicle.

As Bee infers above, if your dealer thinks it's going to be a problem, that's a clear signal that your dealer doesn't know as much about ED as you really want them to. Time to seek out a Board sponsor.


----------



## hayden (Jun 6, 2006)

I just did it as well.



boothguy said:


> You might also need a document that shows a resolution by your business to lease the vehicle.


BMWFS provides that document for you. You just fill in the blanks.


----------



## the J-Man (Jul 31, 2009)

For those of you who have done this, do you still have to sign a personal guarantee? Do they qualify you with your personal finances or the business finances? Does the lease show on your personal credit report? I would love to keep my next lease off my personal credit report to free up some things on that end, but I've been told you have to sign as PG and it goes to your personal credit either way.


----------



## hayden (Jun 6, 2006)

the J-Man said:


> For those of you who have done this, do you still have to sign a personal guarantee?


In most cases, yes.



the J-Man said:


> Do they qualify you with your personal finances or the business finances?


Only credit report (and possibly stated income). They do not ask for financials.



the J-Man said:


> Does the lease show on your personal credit report?


Not sure.


----------



## dkreidel (Aug 24, 2005)

No personal guarantee required on a M5 ED corporate lease through BMWFS (California C corp)

Dick


----------



## the J-Man (Jul 31, 2009)

dkreidel said:


> No personal guarantee required on a M5 ED corporate lease through BMWFS (California C corp)
> 
> Dick


 Hmm, and did you have to give up your business financial statements or did they use your personal info?


----------



## tsoc88 (Jun 27, 2007)

*ED Lease*

Personal financial information. Never asked for corporate, though I had a prior domestic BMW on record.
No problem at all with ED Lease. Perhaps you need a new ED CA


----------



## the J-Man (Jul 31, 2009)

Thanks for the tips guys, I will need to look into this more when I do my ED after the 1st of the year. While I can still take the tax writeoff even if leasing the vehicle in my own personal name, I would love to put the car in the company name and keep it off my personal credit. I plan to buy another house soon, and keeping the new car off my personal liabilities will increase my buying power! 

As a side note to all you business owners, watch your business credit cards. I had a few that started reporting to my personal credit report since the first of the year, and given the huge amounts that I charge each month, my credit score took an 80+ point hit. It's a new policy that is being implemented by many banks. AMEX does not do this yet, and is now getting a lot more of my business. If they ever try to pull such a stunt, I could envision quite the uprising, so hopefully they will remain a safe bet.


----------



## dkreidel (Aug 24, 2005)

the J-Man said:


> Hmm, and did you have to give up your business financial statements or did they use your personal info?


Same here - personal information only

Dick


----------



## tsoc88 (Jun 27, 2007)

*Personal/Business Credit*



the J-Man said:


> Thanks for the tips guys, I will need to look into this more when I do my ED after the 1st of the year. While I can still take the tax writeoff even if leasing the vehicle in my own personal name, I would love to put the car in the company name and keep it off my personal credit. I plan to buy another house soon, and keeping the new car off my personal liabilities will increase my buying power!
> 
> As a side note to all you business owners, watch your business credit cards. I had a few that started reporting to my personal credit report since the first of the year, and given the huge amounts that I charge each month, my credit score took an 80+ point hit. It's a new policy that is being implemented by many banks. AMEX does not do this yet, and is now getting a lot more of my business. If they ever try to pull such a stunt, I could envision quite the uprising, so hopefully they will remain a safe bet.


I think you will find in today's economic climate that your personal and business liabilities will be looked at on any major transaction. Just bought a new town house and the mortgage lender had one interesting question: What were the two BMW's I had with BMW finance?
One was in my business name, one was personal. They are now looking at everything.

Also credit rating was 830+ so it wasn't an issue of risk.


----------



## the J-Man (Jul 31, 2009)

tsoc88 said:


> I think you will find in today's economic climate that your personal and business liabilities will be looked at on any major transaction. Just bought a new town house and the mortgage lender had one interesting question: What were the two BMW's I had with BMW finance?
> One was in my business name, one was personal. They are now looking at everything.
> 
> Also credit rating was 830+ so it wasn't an issue of risk.


 Then the business vehicle must have been reported on your personal credit report or else they would not have known about it. Would love to know if anybody has a business vehicle NOT being reported on their personal credit report by BMW, and how such an arrangement was accomplished.


----------



## tsoc88 (Jun 27, 2007)

*Business Lease*

Rethinking this - I'm a sub s, so everything folds back to my personal, rather than business finances.

However, that being said, you seem to be trying hard not to show the business lease on any of your financials. That could be hard to do. What's the issue? At the end of the day, when a credit report is pulled, all of your liabilities will show up.
If you are the owner of the biz remember that your corporate tax id also has a link to your social security number, so avoiding the credit issue will be a trick.


----------



## the J-Man (Jul 31, 2009)

tsoc88 said:


> Rethinking this - I'm a sub s, so everything folds back to my personal, rather than business finances.
> 
> However, that being said, you seem to be trying hard not to show the business lease on any of your financials. That could be hard to do. What's the issue? At the end of the day, when a credit report is pulled, all of your liabilities will show up.
> If you are the owner of the biz remember that your corporate tax id also has a link to your social security number, so avoiding the credit issue will be a trick.


 Your business liabilities do not show up even if you are an s-corp owner. An s-corp has a taxpayer ID, but an S-corp can have multiple owners. The liabilities of the corp that fall under the corp tax ID do not tie back to your personal credit. It would not make sense for that to be the case given that an s-corp can have multiple owners, including passive shareholders who are not involved in operating the business. Remember that an s-corp is for legal purposes the same as a c-corp. The s designation is a special status with the IRS for tax reporting purposes, it does not affect the basic legalities and protections of an llc or corp, including debts owed by the corp. When applying for a personal mortgage, your business liabilities should not be taken into consideration if you have not signed a personal guarantee on them. If you own stock in IBM, does it makes sense for the mortgage lender to put IBM's debt on your loan application?

I'm trying to keep my new car purchase from hitting my personal credit report (i.e. no personal guarantee), in order to increase purchasing power. An $800 car payment will reduce my new mortgage qualification about by $130K+, and as this will be my second house, that is a material amount. But, alas, I don't see BMWFS letting me buy the car without a personal guarantee, so it is likely not possible, but I'll post results when I try to do it in the next few months.


----------



## tsoc88 (Jun 27, 2007)

*Personal Guarantee*

I undertand what you are saying, I am telling you my own experience.
However, the IBM experience makes no sense. Your exposure on IBM is pricing of the stock, not their debt load or lack of it.

Good luck.


----------



## Sonnysgirl (Sep 28, 2009)

*A few questions*

I am in the process of trying to lease or buy in my business name as well. My reasons are the same as mentioned above (trying to keep my debt to limit ratio in control) I'm a credit freak..lol

However, I see you guys mentioning an ED? What is that? The company here in SC doesn't seem to have a clue!

Also, what dealerships have you used in the past that you would refer me too? I don't mind traveling!

If there are any pointers you can help me with.... that would be Great!!

Thanks in advance ;-)


----------



## hayden (Jun 6, 2006)

Sonnysgirl said:


> I see you guys mentioning an ED? What is that?


Read here:
http://www.bimmerfest.com/wiki/index.php?title=BMW_European_Delivery


----------



## Cmarin908 (Dec 30, 2020)

the J-Man said:


> Your business liabilities do not show up even if you are an s-corp owner. An s-corp has a taxpayer ID, but an S-corp can have multiple owners. The liabilities of the corp that fall under the corp tax ID do not tie back to your personal credit. It would not make sense for that to be the case given that an s-corp can have multiple owners, including passive shareholders who are not involved in operating the business. Remember that an s-corp is for legal purposes the same as a c-corp. The s designation is a special status with the IRS for tax reporting purposes, it does not affect the basic legalities and protections of an llc or corp, including debts owed by the corp. When applying for a personal mortgage, your business liabilities should not be taken into consideration if you have not signed a personal guarantee on them. If you own stock in IBM, does it makes sense for the mortgage lender to put IBM's debt on your loan application?
> 
> I'm trying to keep my new car purchase from hitting my personal credit report (i.e. no personal guarantee), in order to increase purchasing power. An $800 car payment will reduce my new mortgage qualification about by $130K+, and as this will be my second house, that is a material amount. But, alas, I don't see BMWFS letting me buy the car without a personal guarantee, so it is likely not possible, but I'll post results when I try to do it in the next few months.


did it work out for you?


----------



## Me530 (Feb 17, 2005)

Cmarin908 said:


> did it work out for you?


You...uh...realize this thread is 11+ years old, right?


----------

