BMW Lease Assumption approval Odds

Anonymous · ‎09-07-2021

Hi all,

I'm in the process of assuming a lease for a 2019 BMW 530e with approximately 8 months left in the term with an initial MSRP of just a hair under 60k. I'm just a little concerned that my credit score and/or financials aren't strong enough to get approved and would waste $100 on a rejection notice ($500 transfer fee, but if denied, BMWFS will credit back $400).

I currently have a 724 Experian Fico Auto Score 8, with an annual income of 110k, and DTI around 9% . I do have some negatives items from 2017 that worries me as well (late payments and settlements). I'm currently not showing any auto loan history in my report, but did payoff one back in 2008 for a purchase(fell off my report already).

What do you guys think? Should I just get a co-signer that pretty much has an A+ paper or can I handle it on my own?

Thanks!

4sallypat · ‎09-08-2021

Your numbers look good to assume the lease but your thin auto profile is a bit of a worry.

Are you planning on buying out the car at the end of the lease since it's a short 8 months left ?

BMWFS has been very good to try and keep business flowing so I think it would be easier than acquiring an initial lease.

My last BMW was assumed by a person that was very similar to your profile - she only needed it for 14 months which was perfect as I was going to lease a new body style.

For net cost of $100 if rejected, I'd gamble on it.

iced · ‎09-08-2021

@Anonymous wrote:
Hi all,

I'm in the process of assuming a lease for a 2019 BMW 530e with approximately 8 months left in the term with an initial MSRP of just a hair under 60k. I'm just a little concerned that my credit score and/or financials aren't strong enough to get approved and would waste $100 on a rejection notice ($500 transfer fee, but if denied, BMWFS will credit back $400).

I currently have a 724 Experian Fico Auto Score 8, with an annual income of 110k, and DTI around 9% . I do have some negatives items from 2017 that worries me as well (late payments and settlements). I'm currently not showing any auto loan history in my report, but did payoff one back in 2008 for a purchase(fell off my report already).

What do you guys think? Should I just get a co-signer that pretty much has an A+ paper or can I handle it on my own?

Thanks!

BMW tends to be ridiculously lenient about approving for things like a lease. I've known people with 40%+ DTI and mid-600s getting approved. Nothing to worry about there.

I'd be more concerned about taking a lease on with 8 months left. By the time you settle in, you'll either be facing purchasing it outright (or, if you lack the cash, financing again) or dealing with any residual issues with the car. BMW can be sticklers about getting you to pay up on any scratches, dings, worn tires, and the like, and don't be surprised if you get a bill for a few thousand dollars at the end of the lease.

Creditplz · ‎09-08-2021

While I agree with BMWFS is very easy to get approved with... they NEED previous auto installment...

it won't be approved, BMWFS won't allow someone who's never had a car loan lease a $60k car off the bat... if it was a 3 series/4 series... I'd say yeah.. but considering it's a 5 series I'm going to say no..

unless you have had a mortgage?. They like to see that you can "handle payments in that amount" I've leased many cars through BMWFS, AUDIFS, PFS, MBFS etc..

when DW wanted to get a X5 S35i she was denied some 6-7 years ago because of no previous installment loan that was close to the $700 monthly payment this lease was demanding... credit scores were 740?.

to add to this; I was denied my first lease because I was going from $390/mo Chevy, to a BMW 6 series GC at a super good lease price of like $780?.

iced · ‎09-09-2021

@Creditplz wrote:
While I agree with BMWFS is very easy to get approved with... they NEED previous auto installment...

it won't be approved, BMWFS won't allow someone who's never had a car loan lease a $60k car off the bat... if it was a 3 series/4 series... I'd say yeah.. but considering it's a 5 series I'm going to say no..

unless you have had a mortgage?. They like to see that you can "handle payments in that amount" I've leased many cars through BMWFS, AUDIFS, PFS, MBFS etc..

when DW wanted to get a X5 S35i she was denied some 6-7 years ago because of no previous installment loan that was close to the $700 monthly payment this lease was demanding... credit scores were 740?.

to add to this; I was denied my first lease because I was going from $390/mo Chevy, to a BMW 6 series GC at a super good lease price of like $780?.

For what it's worth, I had no loan of more than maybe $15k (and no recent loan) when they approved me for a lease on a $66k car with $700ish monthly payments. My profile was a little different than OPs, but they can and do approve with thin auto loan history.