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



## addictED (Jul 2, 2003)

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


----------



## XJSChris (Jun 28, 2007)

addictED said:


> * 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


----------



## kyfdx (Aug 4, 2003)

*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..


----------



## Gunder (Sep 12, 2007)

XJSChris said:


> 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:
> 
> ...


Good points. Another possibility could be lack of credit history. They usually like to see at least a prior purchase of a vehicle or home. I've heard before, though not sure if it's true, that it is harder to qualify to lease a car than it is to finance one.


----------



## Eliot (Jul 30, 2007)

I disagree. The 740 credit score has always been an automatic approval. Everything else is secondary.

Call BMWFS and ask to speak to the credit department. There is more to this than what has been disclosed here...


----------



## Gunder (Sep 12, 2007)

Eliot said:


> I disagree. The 740 credit score has always been an automatic approval. Everything else is secondary.
> 
> Call BMWFS and ask to speak to the credit department. There is more to this than what has been disclosed here...


Well obviously that's false. If 740+ means automatic approval, he would have got the approval.

Now it's possible we don't know the whole story. Does the intended lesee really have a 740+ credit score or is that just what he's telling the OP??


----------



## chrischeung (Sep 1, 2002)

Did you consider cosigning if he fully prepays?


----------



## philippek (Jul 31, 2003)

addictED said:


> 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
> ...


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.


----------



## wj94 (Jun 13, 2007)

philippek said:


> 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?


----------



## philippek (Jul 31, 2003)

wj94 said:


> Wouldn't that be discrimination to assume a younger person would not return the car in satisfactory condition?


It's discriminating against people who don't have any experience with high line vehicle leases, regardless of age.


----------



## Eliot (Jul 30, 2007)

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


----------



## wj94 (Jun 13, 2007)

I have a 740+ score and was told a lease wouldn't be approved without cosignor due to debt-to-income ratio (graduating college), even though I have previous history of paying off another car completely and have never missed a payment. BMWFS sucks.


----------



## mikeybklyn (Jun 8, 2007)

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.


----------



## mclaren (Jan 5, 2005)

mikeybklyn said:


> 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.


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.


----------



## SystemR (May 31, 2006)

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


----------



## jman217 (Jul 29, 2007)

I too was rejected on a recent assumption because I had not leased before. All they asked for was proof of income. So I faxed them a pay stub and they approved me.


----------

