BMW has failed credit applications for 3 applicants so far since May on my 2018 340i lease that I am trying to get out ify. The candidates all lost out on the $100 application fee. Most of them have high income 150k to 200k and credit scores around 770. They’ve all had leases in the past. They basically even offered to pay the remaining lease payments upfront but BMW would not allow the transfer.
When I/applicants asked why they failed the application bmw replied saying they will get a letter for why they were rejected in 20 days and could not discuss over the phone. Some of them said the letter said they did not enough credit history. But this makes no sense, one of them was a 54 year old man with plenty credit history. BMW offered all of them to reapply for free and asked all of them to fill out the application again with a Co-signer.
I haven’t been able to get a straight answer from BMW. I would assume the aforementioned credit scores and financial background is more than sufficient for someone to take over the remaining 9 payments. Has anyone experienced something similar?
Exact same thing happened with me when another applicant was willing to takeover my 320xi which had around 8 months left at the time of application. That guy applied again with co-applicant but the application was rejected again saying that they could not verify ssn of co- applicant. Looks like something fishy with BMW these days.
Mine was in the 820s; I asked BMW if that had anything to do with it and BMW assured me that it did not. But from a risk management perspective it makes perfect sense for them to keep the car with the less risky lessee as they are not making a sale from the transfer.
Not sure if the various departments at BMW talk to each other because they should provide better explanations.
I had GM reject me for a 200 dollar bolt payment 2 years ago, 800+ credit, 2 financed cars, mortgage, shortest cc account 10 years, good income (well over 100k).
Never got the explanation letter either. Do they just not want to transfer leases sometimes? Who knows.
I had 3 people get denied on the transfer I just did. They were all irate and adamant that they had great credit and really good income. One guy even sent me a screen shot of his Wells Fargo Fico score of 820. And according to Linked In he is a VP of a large healthcare company so clearly income was not a concern which they don’t even check anyways.
They did say that they had an overwhelming amount of lease assumption applications since they did not process assumption applications earlier in the year due to COVID related shutdowns.
Somebody in the credit department must not be doing a thorough check and skimming through the applications or BMW FS doesn’t want to take additional risks at all unless the current lessee is struggling to make payments. If that’s the case, they should once again stop their process or state minimum requirements to pass the credit check instead of just pocketing $100 per application.
We had no less than 5 applicants rejected for our 740 a few months back. I did not personally verify their income or credit scores, but all said they made plenty of $$ and 700+ scores
I’m on applicant #9 for my i8. Everyone has been mid 700s+ and $250k+ income. Luckily I don’t NEED to get rid of it. But seems like Bmw is just collecting application fees. Most of these people were genuinely surprised/annoyed about rejection, with several saying they’ve never been turned down credit.
Has anyone noticed that we’re in the middle of a pandemic? Credit in 2020 has been tighter than it’s been in most of the past decade.
Also, after a denial, no one starts talking about the 97% LTV jumbo mortgage they got last year, the $400,000 in student loan debt the wife has in deferral, the two Jetskis they financed for their high-school-aged sons, the credit card consolidation loan payment they’re making to Lending Club, the Disney vacation that’s mostly still sitting on their Chase Sapphire Reserve card, and the four other open car loans/leases they have reporting.
A consumer can have strong income and make every single debt payment on time (including previous leases of similar caliber) and still have way too much debt, especially right now.
On a transfer, BMW is probably assessing whether they’d be accepting more risk with the new lessor than they already have with the current one.
Exactly this, rates are low and people are borrowing more, doing renovations and taking out home equity & refi but on top of that job security is down. I’m sure FS has become a bit more strict based on national economic situation.
I know I’m on that cheap fiat train as well, leveraged up with fixed payments, waiting to pay back my loans with even more inflated doll hairs. BMW had no prob approving me for the loan as well as another loan for a potential m8.
So with the transfers there’s something up, bc new car approval isnt nearly as difficult.
