[Palisades]

Has anyone had any problems getting approved to assume an existing lease from BMW Financial? I have an excellent credit score (Around 750), am 26 years old, and make a solid six figures a year, and I was declined. I then added my Dad as a co-signor, who is a senior vice president at a large movie studio, great credit, and re-ran the credit check, and was declined again. Needless to say, I am extremely frustrated.

Just wondering if anyone on this board has had this problem, or have any insight into what the deal is.

My dreams of driving a 335i in the next couple weeks have been rudely squashed.

[200Duece]

with a good score and available monthly income to cover the payment you shouldn't have problem when your Dad co-signs

On your own they probably looked to see what your length at your job and any previous car loans that you have paid on. No prior similiar value auto credit is usually a reason for a decline.

Did you look into a new car lease?

[Palisades]

I did look into new car leases, but the amount of incentives I was getting on the assumption made it a much better deal. Brought the payment down to $530 a month on a loaded 335i with nav. Blew me away when I didn't get approved with my dad as a co-signor.

Now it looks like CPO is the only way to go.

-Mike

[200Duece]

Did they state any reason why they wouldn't do the lease for you? $530 a month is pretty reasonable. You'd be looking at a 27G ish CPO car to ge the same payment. I hope they - FS - don't give you a hard time about a CPO purchase.

Feel free to PM me if you have more specific questions.


Cheers,
Shawn

[nukezero]

i don't make any where near six figures like you mention and I'm about a low 700 FICO score.

i qualified with BMW FS and 0.9% financing easily by myself. I'm not sure what your problem is... there must be something else on your credit history....

[E90RWC]

I have heard that applying to take over a lease is more difficult than applying at a dealer because dealers can work around things and get you approved by making you put more down or something.

Also, dealerships have a different credit score they check which is the Auto FICO score. Only dealers have access to this score and it is different from the scores that are reported on Experian, etc.

This auto score focuses on how many auto loans you have had, your on-time payments, any defaults and amount of credit that has been given to you.

I am only 22, I have a 750+ credit score, but I have no auto loan history. Therefore I would never get approved without my parents co-signing.

The good news is my parents get approved all the time, because they have had 15+ car loans given to them, never once been late or defaulted.


With all that being said, you should try and recall if you have had any issues with car loans in particular in the past.

[dannygenio]

I am smelling Bankrupcy

[kgb1637]

Ummm, have you checked your actual credit? Make sure you don't have any red flags or anything on there, also I assume your 720 is your FICO score, see if they're using that or anything else. I make half of what you make and was approved on a brand new lease without a co-signer.

[E90RWC]

Peep this...

http://ficoforums.myfico.com/fico/bo...essage.id=1610

[Palisades]

Lol, I'm gone a couple days and now we are talking about bankruptcy....

I pulled my report on Experian before I applied, and there was nothing on the report that I didn't expect. No late payments or any other red flags. I do have about $15,000 in student loans outstanding and a $12,000 auto loan for my current car, and a credit card I pay off every month that includes various business expenses. I'm thinking the only issue could have been my debt to income ratio.

They wouldn't give me a reason over the phone, and I was told to expect a mailed explanation in 4-6 weeks. But what blows me away is that I wasn't approved when my dad was added as a co-signor. Once he was added, my debt to income ratio would have been stellar. Doesn't make sense.

[808E90]

Originally Posted by Palisades

Has anyone had any problems getting approved to assume an existing lease from BMW Financial? I have an excellent credit score (Around 750), am 26 years old, and make a solid six figures a year, and I was declined. I then added my Dad as a co-signor, who is a senior vice president at a large movie studio, great credit, and re-ran the credit check, and was declined again. Needless to say, I am extremely frustrated.

Just wondering if anyone on this board has had this problem, or have any insight into what the deal is.

My dreams of driving a 335i in the next couple weeks have been rudely squashed.

Originally Posted by Palisades

Lol, I'm gone a couple days and now we are talking about bankruptcy....

I pulled my report on Experian before I applied, and there was nothing on the report that I didn't expect. No late payments or any other red flags. I do have about $15,000 in student loans outstanding and a $12,000 auto loan for my current car, and a credit card I pay off every month that includes various business expenses. I'm thinking the only issue could have been my debt to income ratio.

They wouldn't give me a reason over the phone, and I was told to expect a mailed explanation in 4-6 weeks. But what blows me away is that I wasn't approved when my dad was added as a co-signor. Once he was added, my debt to income ratio would have been stellar. Doesn't make sense.

Debt to income ratio?

That only adds up to $27,000 ... I thought you were making six figures

[Palisades]

By the way, I was also approved by BMW for a new car lease a couple months ago, but not on a lease assumption. Go figure.

[E90RWC]

Just have your dad apply and you co-sign. It will be all good then!

[808E90]

Originally Posted by Palisades

By the way, I was also approved by BMW for a new car lease a couple months ago, but not on a lease assumption. Go figure.

Hmmm ... Go new

[kgb1637]

Originally Posted by 808E90

Hmmm ... Go new

+1

New lease, go for it.

[RambleJ]

It is your debt to income ratio, that is a big buzzkill for getting approved for auto's.

[JeF4y]

Wait until you find the reason out by mail.

Find a local lender.

Just because you're assuming a lease doesn't lock you into BMW Financial. You can do it through many other financial institutions..

[Angry3]

Originally Posted by JeF4y

Wait until you find the reason out by mail.

Find a local lender.

Just because you're assuming a lease doesn't lock you into BMW Financial. You can do it through many other financial institutions..

A lease assumption by definition means that the op is taking over an existing lease with BMWFS, so this really isn't true. No approval = no assumption.

[SpmnE9zero]

It may not be very much, but your current car loan is killing you. Unless you have a very long line of credit with no marks, and have good debt to income ratio, banks typically will not finance a second car for someone of your age. I was in car sales for a while and we always had a hard time getting the second one done even with great credit. Now you also stated you were approved for a new car prior to this event, the fact that you seem to be pulling your credit so often is also a bad sign to a creditor because it looks like you are planning on making a lot of purchases coming up in the near future. Just my $0.02... Not a credit pro....

[Palisades]

Just a quick update on this thread, I spoke with a BMW finance guy, and he explained that BMW Financial won't approve a lease transfer unless the new person has better credit than the person giving up the lease. Since they don't have an obligation to allow the transfer, they only do it when they deem it to be less risky than the current lease.

I went ahead and bought a CPO'd 2007 e92 - 6 speed Monaco Blue with Saddle brown leather. Was approved with BMW Financial for a 3.9% 60 month loan no problem. It's on a truck right now being shipped from Texas. The waiting is killing me!

[200Duece]

nice job man. enjoy your new car

[ellipsis212]

sounds like a beautiful combination. Enjoy!!!