If it’s a lease transfer it isn’t likely that they will approve a transfer to someone like you and increase their risk.
BMWs aren’t cheap, for first autos banks usually like to see either a small amount financed or a small payment (TD for comp auto).
Here are reasons you were likely declined
PTI for first time buyer (shouldn’t exceed 7-9%)
Lack of comp auto
Citizenship status (banks won’t approve a lease or finance if you aren’t guaranteed to be in the US for the entire duration)
Transfer of a lease to a first time buyer, drastically increasing the lenders risk.
You need to get the FCRA statement on your decline with detailed reasons (which should just arrive by mail), ranked, but I suspect the message BMW is sending (besides what @ethanrs said about transfers being harder than new) is not “you are on the wrong car” but “you’re on the wrong brand - for now”.
But without that detailed explanation, only BMW can say for sure.
I have been researching for a while now and finally registered to this forum!
i am not sure if this is the right section .
I am located in san diego Ca
The Dodge dealership i went to said i didnt qualify for leasing of course my credit isnt the best [640]
I was offered 8 percent loan and I even had them remove their “warranty” ridiculous payment still was 7-8 s and 2k down (totaling like 38k)
on a grand cherokee laredo.
need a help on where to see what dealership takes a score that low maybe chevrolet ?
Also i am only interested in trading in because
my 2017 dodge charger because the value will finally break even and I will no longer be negative equity {young dumb and rolled over a huge negative equity !) with a 3.99 rate 432 mo. kinda high because of the negative want a larger vehicle
anyways the dealership tried giving me 3k below which isnt too bad but still makes the deal difficult
was trying to get a grand cherokee laredo or ram 1500 nothing too crazy
I have never leased before and was looking for help
I am not here looking for a hand out but just wanted to know if i should just try other spots or just wait it out until my credit is higher! Thanks again!!!
With a 640 FICO you can get approved with many brands/lenders, but not Tier-1 (the lowest rate available), an approval will be at a higher Tier/buy-rate, and the finance manager will probably try and bump you (mark-up the financing). So the worse your credit score, the more you pay and the more you can be taken advantage of.
FCA owns Fiat, Chrysler, Jeep, Dodge, etc. they tend to approve lower scores, but you will pay for it. Spending some time on Edmunds leasing forums, looking at the various makes and models, to see what their Tier-1 buy-rates are, will give you some idea. Sometimes in the same month, in the same brand, Model A has a money factor that effectively converts to 2% and Model Z might be 6% — both for Tier-1 (you at Tier-2/3 will pay more, and it will then be marked up). If you do lease, ideally pick something where Tier-1 is low (the effective rent on my lease is 0.74%).
You will be in a much stronger position if your FICO score on all three bureaus is 720+.
I – a stranger on the Internet – recommend keeping all three credit bureaus frozen, and only thawing when opening a new trade-line. The dumbos at CNBC seem to agree:
There are pay services to do that, but what self-respecting LH wants to pay? We’re the product, not the customer.
You do NOT have to subscribe to any kind of monthly service in order to freeze your credit bureaus. Thanks to @neverhaveleased for finding the FTC link confirming:
If I recall correctly, one of them (TU?) may ask to charge a credit card a nominal fee ($1) to verify you the first time, but it is not a subscription and you will not be charged to lock and unlock.
If you are applying for a new trade-line, I usually ask the search engine which bureau to unlock. For instance:
In the very worst case, if you unlock the wrong bureau, you will immediately receive an alert from your credit monitoring of which bureau they attempted to pull, you can unlock and ask them to try again.
Hi LHs, just curious which credit bureau does BMWFS use? Do they only look at Experian or do they look at all three major bureaus (Experian, Equifax, and TransUnion) and use the highest one? Thanks.
