Gotcha. That’s what I’ve read on X3 forums too. Added it to my build after much contemplation but think it’s a must have for what it costs. Surprised this hasn’t moved yet, is this listed on SAL too? Probably move much quicker there.
1 Like
On a 55/56/57 res lease you’d be a fool not to spec the adaptive suspension.
It’s not on SAL. I am in no rush and love the truck, and I don’t want to deal with the clowns and tire kickers and under-qualified applicants there yet.
2 Likes
I’m not saying he can or can’t afford it…but income is only part of the equation.
5 Likes
What makes you think you need 150-200k salary for afford this payment ? It’s all about that debt to income ratio as well.
5 Likes
You may want to update the title to reflect the new cash due amt. GLWT
1 Like
Agreed, I know BMW is being strict with transfer applicants in general, but matt I think you might be being a little over aggressive in weeding out potentials if you’re telling them they need $150-$200k in income to take over a $600/mo X3.
2 Likes
No doubt Jeremy. She had a 700. Not getting bought for this transfer at 700 FICO (probably actually lower if she’s using Credit Karma or other soft pull reporting) and 70K per annum.
I don’t disagree with your premise Jeff.
Here’s my mental calculus: In my experience, people tend to inflate (or at the very least slightly round up) their annual salary and credit score. I’m betting that a little more rigorous vetting at the top, prevents some longer-term let down for all parties.
If I was talking to a LH prospect, the flavor of the conversation would be different. SAL has way less communal leasing knowledge among buyers (and sellers)!
2 Likes
I was approved for my first F80 M3 lease on my own when I was 20 years old listing 50k as my income. I had been building credit for years before that and had a 4 series with a co-signer previously, but with stellar credit history and good auto credit history, I was approved. My sales guy was surprised, I remember that moment when he said “I’ll call you later and let you know about approval” and then he went to grab some papers and when he sat back down he was like “wow, you got instant tier 1 approval”
Proud credit building moment right there.
5 Likes
Transfers have a higher hurdle though
3 Likes
I’d respectfully disagree. I think transfers are probably easier to get approved for because the bank is assuming less risk with the prospective buyer.
Take the current listing for example. If someone walked into a dealership with a 740 credit score and a $70k/year salary and wanted to lease this car, BMW FS would be evaluating whether they are credit worthy for the entire 36-month term. It may be a tough one, but with the right DTI ratio they might get approved. Now take that same person who is taking over this lease with 2-2.5 years left - BMW FS is now assuming less risk because the outstanding loan amount is less than what it would have been full term. Now obviously if OP over here has a much higher credit score and salary compared to the transferee, then as between them BMW FS is worse off. But for a prospective transferee I think they have better odds getting approved on a transfer vs. going straight to the dealer for a new car purchase.
I’m also basing this on my recent experience with my F80 M3 transfer. The kid was 20 years old, barely had any credit, his most expensive lease was a Toyota Tacoma, and BMW FS approved him on my $8xx payment (only 17 months left) in less than a minute. He told me a few months prior he went into a dealer to lease a new M340i for $6xx and they didn’t approve him, so he was skeptical applying in the first place. I told him about the risk of losing the $100 app fee, but he decided to give it a shot anyway and voila. The same bank that wouldn’t approve him on a full-term $6xx payment approved him on a half term $8xx payment.
I also think their approval system for new car leases through dealers is probably totally different than transfers. There is no way an approval at a dealer would take one minute, whereas with transfers, I’ve routinely had a credit decision issue in literally one minute. Multiple times.
Anyway, just my thoughts based on my experience!
Yikes! Lot of data points disagree.
Your one personal experience doesn’t change the fundamentals: BMWFS is a subsidized bank that is designed to help sell units for BMW. A transfer doesn’t sell a unit, so there is less desire to approve and they can hold a higher threshold.
Also, please familiarize yourself with the paragraph break.
3 Likes
LOL, duly noted re the paragraph break.
As for the one off data point - the approval in less than a minute I mentioned has happened to me no less than 5 times in the last year alone (both when I was assuming and transferring). That means a computer, not a human, is vetting the app. For dealer purchases, at least in my experience, there is always a human on the other end vetting the app. That’s why it takes so much longer to get an approval. If BMW FS was concerned with approving transfers, I think they’d have a more rigorous system in place 
I guess moral of the story is - don’t turn away prospective buyers based on your own informal approval process. Let them take a chance and apply with BMW FS (knowing the risk they may lose the $100 app fee). You have nothing to lose except maybe waiting an extra day to start a new transfer with a new person in case they’re not approved.
2 Likes
Different approval process !== Higher threshold. BMW FS has never come out saying that approval thresholds on transfers are higher - so it’s just speculation. What @ZZAutoDeals is saying makes sense and mirrors DPs I’ve seen on here and BMW forums.
2 Likes
Where are those data points?
https://www.bimmerfest.com/threads/lease-takeover-denied.727476/
I have a call into BMW’s NA press boss to see if they’ll give me a statement on the record or on background. The originating dealer where I have a long-term relationship said that he thinks my thesis is at least directionally correct, but the stores don’t have a ton of viz into approvals/denials/credit consideration criteria.
I just counted at least 5 “immediate approvals” (not including my own) in the BMW FS Lease Assumption and Timeline thread:
But immediate approval doesn’t speak to the credit profile or worthiness of the applicant, does it?
I don’t dispute that highly qualified applicants can move super quickly through the BMW assumption process.
No, the point is that it’s a different credit vetting process than buying a new car from a dealer. And at least in my experience, even non-credit-worthy buyers have been approved on a transfer whereas they wouldn’t otherwise get approved buying a car directly from a BMW dealer. You asked for the data points, so there they are.
Did you even read through the threads you linked? Plenty of people with amazing credit history (VP of healthcare, co-signer dad who makes big $$$, high 700s, etc) who don’t get approved. The second post in one of them was some new grad with student loans who instantly got approved. That’s why even though BMW FS is pickier, they aren’t using a higher threshold, just a more selective one. Which is what me and everyone else is telling you.
2 Likes