[GoSchnell]

I just found out yesterday that I was denied by BMW FS on an M550 lease assumption and I have no idea why. Thought maybe you guys could shed some light on it or possibly offer a work around.

I have a 755 Experian score (which is what they pulled. All other scores above 700), I have good job history, mid 6 figure salary plus other income, lived in the same house for 8+ years, good car payment and lease history, I am 47 years old, and got declined. I don't get it.

I even offered to pay off the lease in its entirety, and BMW still says no to that because my credit app was declined. Makes no sense. I sent them a letter via email asking if a supervisor can get back to me ASAP, and nothing. Offered to even pay a security deposit too.

And they can't tell me why. They said they'll send me a letter within 30 days which will explain why. By then of course this deal will be gone....and it's a great deal.

And the guy who I want to take over his lease works at a BMW dealership. He spoke to his supervisors and they even tried calling, but no one at BMW FS would tell them anything.

So just thought I'd post the story here and see if any of you guys have any insight or suggestions.

Thanks

Chris

[note46]

I wonder if the car was an employee lease and BMW is cracking down on employees (dealer) transferring lease to non-employees.

[GoSchnell]

They have...they said employees cannot transfer their lease anymore (like maybe after this year?)....but why then would BMW send me the app? I wondered the same, but then BMW I would think would not initiate the app with me, and pull my credit if that were the case.

[TopgearLA]

Originally Posted by GoSchnell

They have...they said employees cannot transfer their lease anymore (like maybe after this year?)....but why then would BMW send me the app? I wondered the same, but then BMW I would think would not initiate the app with me, and pull my credit if that were the case.

Sadly bureaucracy isnt as logical as all that. Its like going to the doctors or insurance, they dont know what to deny you until you try it as department are almost automated just to do the ask but not within what is possible til the approval process.

The rates at which dealers get their leases are so low, i am not surprised at all. I had dealers tell me they were leasing brand new M550ixs for cheaper than i am bout to lease my 530e. I'd imagine BMW is none too happy that they would take double loss for the second owner. Makes sense but yeah they don't know to tell you no until it gets in the hand of the finance person.

[GoSchnell]

Originally Posted by TopgearLA

Sadly bureaucracy isnt as logical as all that. Its like going to the doctors or insurance, they dont know what to deny you until you try it as department are almost automated just to do the ask but not within what is possible til the approval process.

The rates at which dealers get their leases are so low, i am not surprised at all. I had dealers tell me they were leasing brand new M550ixs for cheaper than i am bout to lease my 530e. I'd imagine BMW is none too happy that they would take double loss for the second owner. Makes sense but yeah they don't know to tell you no until it gets in the hand of the finance person.

Well they wouldn't be losing...it's already been contracted. I'm just fulfilling the contract instead of him. And he was just getting rid of it because he has an M5 on order. What especially doesn't make sense is that I offered to just pay the entire lease amount upfront AND give a security deposit....but without hesitation or seeing if that might work, customer service just says "no. not possible"

[note46]

Originally Posted by GoSchnell

Well they wouldn't be losing...it's already been contracted. I'm just fulfilling the contract instead of him. And he was just getting rid of it because he has an M5 on order. What especially doesn't make sense is that I offered to just pay the entire lease amount upfront AND give a security deposit....but without hesitation or seeing if that might work, customer service just says "no. not possible"

If I were to guess, it's probably more on the line of "abuse of policy" or something along those lines. My cousin used to work for a bmw dealer and they were very lax on the employee lease 2-3 years ago. Now they are reacting in the opposite extreme.

[GoSchnell]

Originally Posted by note46

If I were to guess, it's probably more on the line of "abuse of policy" or something along those lines. My cousin used to work for a bmw dealer and they were very lax on the employee lease 2-3 years ago. Now they are reacting in the opposite extreme.

But why then let me go through the trouble of submitting an app and running my credit? If you're right, I can only think that MAYBE that's their (assumptions dept) standard practice....send the client the app and run the credit...but then when it got up to the credit department, who makes the decisions, they denied it because they saw it was a BMW employee(??)

And what's the letter then going to say? I doubt they'd state that as the reason. Won't know until I get it....in 30 days or less.

[note46]

Originally Posted by GoSchnell

But why then let me go through the trouble of submitting an app and running my credit? If you're right, I can only think that MAYBE that's their (assumptions dept) standard practice....send the client the app and run the credit...but then when it got up to the credit department, who makes the decisions, they denied it because they saw it was a BMW employee(??)

And what's the letter then going to say? I doubt they'd state that as the reason. Won't know until I get it....in 30 days or less.

I'm curious what the letter will say as well. Keep us posted.

[GoSchnell]

Originally Posted by note46

I'm curious what the letter will say as well. Keep us posted.

Will do

[TopgearLA]

Originally Posted by GoSchnell

But why then let me go through the trouble of submitting an app and running my credit? If you're right, I can only think that MAYBE that's their (assumptions dept) standard practice....send the client the app and run the credit...but then when it got up to the credit department, who makes the decisions, they denied it because they saw it was a BMW employee(??)

And what's the letter then going to say? I doubt they'd state that as the reason. Won't know until I get it....in 30 days or less.

Just saying its basic bureaucracy, one department or person dint know to tell you no or isn't even aware of new policies. Its very common. Frustrating but common.

[ksa]

That sucks. Wish I had an explanation but sounds like they are doing whatever the hell they want without any good reason. Which sucks but not much you can do about it. Why not just get a new M550 with your own lease? Surely the deal won't be as good but is it THAT much different?

[SteveinArizona]

If it is not you, and BMWFS has intimated that you have bad credit, then I for one would never do business with them again.

[Pierre Louis]

Sounds like said employee could not afford or didn't want to pay the lease buyout.

[bimmer_335]

Originally Posted by GoSchnell

I just found out yesterday that I was denied by BMW FS on an M550 lease assumption and I have no idea why. Thought maybe you guys could shed some light on it or possibly offer a work around.

I have a 755 Experian score (which is what they pulled. All other scores above 700), I have good job history, mid 6 figure salary plus other income, lived in the same house for 8+ years, good car payment and lease history, I am 47 years old, and got declined. I don't get it.

I even offered to pay off the lease in its entirety, and BMW still says no to that because my credit app was declined. Makes no sense. I sent them a letter via email asking if a supervisor can get back to me ASAP, and nothing. Offered to even pay a security deposit too.

And they can't tell me why. They said they'll send me a letter within 30 days which will explain why. By then of course this deal will be gone....and it's a great deal.

And the guy who I want to take over his lease works at a BMW dealership. He spoke to his supervisors and they even tried calling, but no one at BMW FS would tell them anything.

So just thought I'd post the story here and see if any of you guys have any insight or suggestions.

Thanks

Chris

From financial institution perspective, if the original lesee is a super low risk (800+ credit score) in top tier income bracket, they have no interest to dilute their portfolio by letting him go and swapping his loan. On the other hand if you were the same quality or better compared to original lesee then they have no issues converting the loan to your name

Its very likely that decline was triggered due to internal policy since he's a dealer employee but no way to confirm it

[kpblade]

Originally Posted by bimmer_335

From financial institution perspective, if the original lesee is a super low risk (800+ credit score) in top tier income bracket, they have no interest to dilute their portfolio by letting him go and swapping his loan. On the other hand if you were the same quality or better compared to original lesee then they have no issues converting the loan to your name

Its very likely that decline was triggered due to internal policy since he's a dealer employee but no way to confirm it

Would a decline like this, from an internal policy decision, adversely affect a person's credit rating?

[mr_clueless]

Originally Posted by GoSchnell

They have...they said employees cannot transfer their lease anymore (like maybe after this year?)....but why then would BMW send me the app? I wondered the same, but then BMW I would think would not initiate the app with me, and pull my credit if that were the case.

It's possible they just like to collect as much information about people as they can get their hands on.

[ksa]

Originally Posted by kpblade

Would a decline like this, from an internal policy decision, adversely affect a person's credit rating?

I think there's a limit to how many credit searches you should be getting done every year. I believe over the 3-4 credit checks a year the more you do it can adversely affect your credit rating by lowering it. Just a check in itself and a company saying no to financing you etc should not impact the credit score.

[wcbmw]

wait about a month and try a different dealership, happened to my friends before.

[bimmer_335]

Originally Posted by kpblade

Would a decline like this, from an internal policy decision, adversely affect a person's credit rating?

one decline in itself is typically not an issue at all... however it he goes out and gets turned down on lets say next 3 loans in 3 months or so you bet it will have an adverse affect on overall rating. No one will be touching him with a pole for good 6 months to a year (gets you sub prime tier and interest)

OP can still get new lease though as companies are more flexible with new car leases

[Vitacura]

Originally Posted by bimmer_335

one decline in itself is typically not an issue at all... however it he goes out and gets turned down on lets say next 3 loans in 3 months or so you bet it will have an adverse affect on overall rating. No one will be touching him with a pole for good 6 months to a year (gets you sub prime tier and interest)

OP can still get new lease though as companies are more flexible with new car leases

Other than the credit inquiries, there is no impact to a credit file for denials. The thinner your file the more an inquiry may impact how potential lenders see you with the possibility of a slight score reduction.

I know of several people with 30-40 inquiries less than a year old from churning credit cards and they have scores above 760+ and have no problem getting approved.

Hard inquiries stay on your report for two years, but for scoring purposes they are not considered after 12 months.

[drmlee]

i think my score was something similar to that 3 years ago, they approved me for a $98k msrp lease. its probably because its a discounted employee car, doesnt make sense otherwise.

[530iDriver]

Debt to income ratio can also play part on loan denial decisions, even if you have excellent credit and solid payment history. Lenders today are very picky as to whom they trust their money with...

You can order a free credit report from the 3 main report bureaus once a year. I highly recommend doing this, specially, before making a major purchase on credit.