Does transferring a lease ruin or hurt your credit?

Bmoney2K4 · 11-26-2008, 12:10 PM

Interested in transferring my lease but do not know the consequences as far as ruining or hurting my credit score? Does it matter which website I use? The only ones I know are swapalease.com and leasetrader.com. I do not know what to do here, have a 2008 335i coupe brand new that I am paying 735 a month including tax. It is giving back pain and knee pain. Does anyone have knee pain as a result of the narrow seating and limited space in the front driver's position. Help would greatly be appreciated

Joonsup · 11-26-2008, 12:23 PM

you must be one tall mofo. anyways, what i read was that if you sign over your lease to someone, and they fall behind on payments or default, i heard that it affects you the same so it is recommended that you transfer your lease over to someone that you know will make their payments on time for the remainder of the lease. But of course that's impossible to know unless you personally know the person. I may be wrong though but that's what I read in an article about leasing.

Kevin G · 11-26-2008, 12:46 PM

Not sure why it would affect your credit since the new person is assuming the lease; and it becomes a contract between him/her and BMWFS (from what I understand). And you're completely out of the picture; assuming the transaction was done correctly and through the appropriate channels.

Joonsup · 11-26-2008, 01:12 PM

Quote:

Originally Posted by Kevin G

Not sure why it would affect your credit since the new person is assuming the lease; and it becomes a contract between him/her and BMWFS (from what I understand). And you're completely out of the picture; assuming the transaction was done correctly and through the appropriate channels.

This isnt the same article i read a while back, but it mentions how it can potentially damage their credit.

http://www.bankrate.com/brm/news/auto/20010420b.asp

BzsBimmer · 11-26-2008, 01:32 PM

That article only applies to car companies who don't agree to new owner financing. MB used to be this way until recently too.
For BMW, as long as they agree to the terms and conditions, you're off the hook and actually could improve your credit score/rating based on income/debt ratio.

Now if you just let cousin Bob take over payments... that's a different case.

Bmoney2K4 · 01-10-2009, 09:22 PM

has anyone been through this process that can help?

Jred22 · 01-10-2009, 09:27 PM

Your weight is giving you back pain and knee pain. Get back down to you 145 or so that you weighed a few years ago and report back to me. I'm 6' 220 (a rather athletic 220 might i add) and i have no problems fitting into my e90 or others e92s. I'm sure there are a few out there that are bigger than the both of us combined and they fit into there e9x. Join a gym, set a goal, quit bitching. Otherwise find a more sympathetic place to pour your emotions.

Carnage · 01-10-2009, 09:28 PM

Quote:

Originally Posted by Kevin G

Not sure why it would affect your credit since the new person is assuming the lease; and it becomes a contract between him/her and BMWFS (from what I understand). And you're completely out of the picture; assuming the transaction was done correctly and through the appropriate channels.

Correct, the key is to make sure the lease is completely turned over to the new owner. It's a fairly simple process that any reputable leasing company should be able to handle. Once your name is off of it, it doesn't matter what the new owner does, there's no impact to you.

Bmoney2K4 · 01-10-2009, 09:30 PM

at this point of getting used to the car, it's the color that is making me sick absolutely devalues the car in IMO.

BzsBimmer · 01-11-2009, 11:39 PM

Quote:

Originally Posted by Bmoney2K4

has anyone been through this process that can help?

I have... what help do you need that we haven't provided?

Bmoney2K4 · 01-12-2009, 12:33 PM

Can it possibly affect my credit in any way? How much money does it usually cost to transfer the lease?

gmd063 · 01-12-2009, 12:52 PM

It costs almost $500 for the applicant to apply to take over the lease. $100 of that money is non-refundable if they are turned down by BMWFS. You must give the person wishing to take over the lease permission to talk to BMWFS. At that point they will submit the money and a credit app will be sent to them. If they are approved and BMWFS has received all of the required documents they will let you know that is OK to turn the car over to the new owner. You must stay 100% current the entire lease assumption process and if at any time you are late at all the assumption process stops until the account is made current. It is a very simple process and it does not effect your credit what so ever as long as you follow their EXACT instructions.

Bilka · 01-12-2009, 01:25 PM

Quote:

Originally Posted by Bmoney2K4

Interested in transferring my lease but do not know the consequences as far as ruining or hurting my credit score? Does it matter which website I use? The only ones I know are swapalease.com and leasetrader.com. I do not know what to do here, have a 2008 335i coupe brand new that I am paying 735 a month including tax. It is giving back pain and knee pain. Does anyone have knee pain as a result of the narrow seating and limited space in the front driver's position. Help would greatly be appreciated

This will not hurt your credit score whatsoever. As long as the bank is paid there is no problem. After the name is trasfered, you are fine. No Worries.

montreal red · 01-12-2009, 01:37 PM

Quote:

Originally Posted by DineshD

This will not hurt your credit score whatsoever. As long as the bank is paid there is no problem. After the name is trasfered, you are fine. No Worries.

+1 on this...
i transferred my lease on my 328 e90 and then i applied for credit again to get my m3... i got it without a problem. from what the dealer said my credit score is better than before (i started my least on my e90 2 yrs ago)... now the question on whether or not my credit would be affected if someone else defaults on the payments is something i dont know since as far as i know, the person i transferred my lease to is on top of his payments and has not defaulted on anything.

BzsBimmer · 01-12-2009, 02:11 PM

Quote:

Originally Posted by montreal red

+1 on this...
i transferred my lease on my 328 e90 and then i applied for credit again to get my m3... i got it without a problem. from what the dealer said my credit score is better than before (i started my least on my e90 2 yrs ago)... now the question on whether or not my credit would be affected if someone else defaults on the payments is something i dont know since as far as i know, the person i transferred my lease to is on top of his payments and has not defaulted on anything.

As soon as all of the paperwork is completed, you're off the hook and your account will show as a paid as agreed - maybe an account closed notation as well even if the other party fails to pay.

If anything, you're income to debt ratio will improve as it will show a paid off account and less debt - resulting in a better credit score. Of course if you do something else somewhere else, your credit score will be affected accordingly however in the case of your lease transfer, all will be good.

11-26-2008, 12:10 PM	#1
Bmoney2K4 Captain 185 Rep 885 Posts Drives: 2016 535i Join Date: Oct 2008 Location: Los Angeles, California iTrader: (0)	Does transferring a lease ruin or hurt your credit? Interested in transferring my lease but do not know the consequences as far as ruining or hurting my credit score? Does it matter which website I use? The only ones I know are swapalease.com and leasetrader.com. I do not know what to do here, have a 2008 335i coupe brand new that I am paying 735 a month including tax. It is giving back pain and knee pain. Does anyone have knee pain as a result of the narrow seating and limited space in the front driver's position. Help would greatly be appreciated
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11-26-2008, 12:23 PM	#2
Joonsup Lieutenant General 322 Rep 17,316 Posts Drives: E92 M3, E30 325i Join Date: Sep 2007 Location: Bay Area iTrader: (8) Garage List 2008 BMW M3 [9.50]	you must be one tall mofo. anyways, what i read was that if you sign over your lease to someone, and they fall behind on payments or default, i heard that it affects you the same so it is recommended that you transfer your lease over to someone that you know will make their payments on time for the remainder of the lease. But of course that's impossible to know unless you personally know the person. I may be wrong though but that's what I read in an article about leasing.
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11-26-2008, 12:46 PM	#3
Kevin G Second Lieutenant 113 Rep 216 Posts Drives: '16 M3 ZCP Join Date: Oct 2008 Location: Irvine, CA iTrader: (2)	Not sure why it would affect your credit since the new person is assuming the lease; and it becomes a contract between him/her and BMWFS (from what I understand). And you're completely out of the picture; assuming the transaction was done correctly and through the appropriate channels.
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11-26-2008, 01:32 PM	#5
BzsBimmer Major General 3274 Rep 6,723 Posts Drives: '23 G80 FO M3, M3 & MY Tezzy's Join Date: Mar 2006 Location: Nor. Cal iTrader: (32)	That article only applies to car companies who don't agree to new owner financing. MB used to be this way until recently too. For BMW, as long as they agree to the terms and conditions, you're off the hook and actually could improve your credit score/rating based on income/debt ratio. Now if you just let cousin Bob take over payments... that's a different case.
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01-10-2009, 09:22 PM	#6
Bmoney2K4 Captain 185 Rep 885 Posts Drives: 2016 535i Join Date: Oct 2008 Location: Los Angeles, California iTrader: (0)	has anyone been through this process that can help?
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01-10-2009, 09:27 PM	#7
Jred22 Meat Puppet 66 Rep 1,127 Posts Drives: '11 e90 M3 Competition Join Date: Dec 2008 Location: Minneapolis iTrader: (4) Garage List 2007 Jeep Grand Che ... [0.00]	Your weight is giving you back pain and knee pain. Get back down to you 145 or so that you weighed a few years ago and report back to me. I'm 6' 220 (a rather athletic 220 might i add) and i have no problems fitting into my e90 or others e92s. I'm sure there are a few out there that are bigger than the both of us combined and they fit into there e9x. Join a gym, set a goal, quit bitching. Otherwise find a more sympathetic place to pour your emotions.
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01-10-2009, 09:30 PM	#9
Bmoney2K4 Captain 185 Rep 885 Posts Drives: 2016 535i Join Date: Oct 2008 Location: Los Angeles, California iTrader: (0)	at this point of getting used to the car, it's the color that is making me sick absolutely devalues the car in IMO.
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01-12-2009, 12:33 PM	#11
Bmoney2K4 Captain 185 Rep 885 Posts Drives: 2016 535i Join Date: Oct 2008 Location: Los Angeles, California iTrader: (0)	Can it possibly affect my credit in any way? How much money does it usually cost to transfer the lease?
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01-12-2009, 12:52 PM	#12
gmd063 Registered 0 Rep 2 Posts Drives: 2007 BMW 328i & 2006 BMW 530i Join Date: Jul 2007 Location: Moultrie, GA iTrader: (0)	It costs almost $500 for the applicant to apply to take over the lease. $100 of that money is non-refundable if they are turned down by BMWFS. You must give the person wishing to take over the lease permission to talk to BMWFS. At that point they will submit the money and a credit app will be sent to them. If they are approved and BMWFS has received all of the required documents they will let you know that is OK to turn the car over to the new owner. You must stay 100% current the entire lease assumption process and if at any time you are late at all the assumption process stops until the account is made current. It is a very simple process and it does not effect your credit what so ever as long as you follow their EXACT instructions.
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