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How to appeal BMWFS credit decision? Denied in lease transfer, prepaid + deposit!

7K views 15 replies 12 participants last post by  jman217 
#1 ·
I've negoiated a fair deal for someone to take over my lease. However, the person was denied by BMWFS despite:
* having 740+ credit score
* offering to prepay the remaining 10 months left on the lease (approx $4360)
* the existing $3600 security deposit remains on the lease also

I find it surprising, and frankly ridiculous, that it was denied in this situation. BMW would have the entire lease balance (relatively minor amount of $4360) completely prepaid, and also $3600 security deposit! The excuse is that the applicant does not have mortgage or lease on his credit report.

Apparently there is only ONE person at BMWFS who makes the credit decisions at BMWFS and his solution is "well, the applicant has to get a cosigner." He seems to be firm on this.

I'm wondering:
* is there any way to escalate this within BMWFS?
* what are the alternatives? Is a private leasing company an option?
* any other suggestions about how to proceed?

Thanks,
Brian
 
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#2 ·
* having 740+ credit score
Although the situation is unfortunate, a 740 credit score doesn't mean anything, especially since the contents of the person's credit report are not known.

There could have been something on the person's credit report that BMWFS did not like. For example:

- Debt to income ratio (they make $3,000 per month, and have $2,500 in payments per month)

- Too many credit inquiries

- Balance to Available Credit ratio (they have a CC with $25,000 limit and have $2,000 in available credit).

- Income too low
 
#3 ·
Even if they pre-pay the lease payments...

They are still being entrusted with a $30K+ automobile... So, if they have little credit history, they can be rejected.

Otherwise, any kid whose Dad gives him $6K to buy a beater could take over a lease for a year..
 
#7 ·
Did you consider cosigning if he fully prepays?
 
#8 ·
A good score is only one part of the credit decision process. Based on what you've said the person who wants to assume your lease is a first time buyer, with little on his/her credit report. I'm guessing that this candidate is probably a young person as well.

At the end of the day you're still talking about a $40,000+ car that needs to be returned in saleable condition. Even if this persons pays all the payments up front, BMWFS has to trust that this individual will take care of the vehicle and live up to the lease-end obligations.

Aside from asking to speak to the credit buyer's manager, there's little you can do to escalate this within BMWFS. I have never seen a credit buyer's decision overturned based on an appeal by the consumer. The only alternative I see is for the transferee to get a cosigner or for you to find someone else to assume your lease.
 
#9 ·
A good score is only one part of the credit decision process. Based on what you've said the person who wants to assume your lease is a first time buyer, with little on his/her credit report. I'm guessing that this candidate is probably a young person as well.

At the end of the day you're still talking about a $40,000+ car that needs to be returned in saleable condition. Even if this persons pays all the payments up front, BMWFS has to trust that this individual will take care of the vehicle and live up to the lease-end obligations.

Aside from asking to speak to the credit buyer's manager, there's little you can do to escalate this within BMWFS. I have never seen a credit buyer's decision overturned based on an appeal by the consumer. The only alternative I see is for the transferee to get a cosigner or for you to find someone else to assume your lease.
Wouldn't that be discrimination to assume a younger person would not return the car in satisfactory condition?
 
#11 · (Edited)
I'm at a loss... There HAS to be more to this...
BMW would not decline a 740+ credit score, with Pre-Pay AND Security Deposits unless there was something negative. A lack of high-line credit would not be a deciding factor in this case.

A 740+ credit score IS an automatic approval without negative credit. And you can't achieve a 740+ with negative credit
 
#13 ·
I was approved with a 650 score, a charged off account and a ton of recent inquiries. However, I have a never late auto lease as well as a never late auto finance on my report. BMWFS is apparently not only score driven, and I'm sure they have some sort of internal scoring system. You can always write or fax them a reconsideration letter, stating all of the facts you list here.
 
#14 ·
I was talking to my State Farm agent the other day and I asked why my auto insurance had dropped so much. He said State Farm as a new system that measures people via a complex computer program and comes up with a number. Your rates are based on that number. He said he was told it takes into account many different factors. So BMWFS may be using something like that.:)
 
#15 ·
i don't think he really has that score and got declined, my credit score is about the same. graduated from college 2 years back and have never owned a house or financed/leased a car before.

there must have been something in the report that caused manual review of the his app, i submitted my lease transfer app on a sat afternoon and was approved 15 mins later (i do believe it is an automatic process)

hope you find somebody, that is a great deal and as i mentioned in the complete car section i'd do it if i didn't already assume the z4
 
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