BMW Financial adding fees to Lease.

[Redsox]

Hello, I am coming to the end of my lease on my BMW 1er and have made all the payments in the lease contract. I checked my BMW account and it shows $450 in Legal Fees added after the lease inception. Also, I check my Credit through Myfico nd it shows that BMW has listed my account as included in Plan which is not correct and would severley damage my Auto-enhaced FICO. Should I just turn the Bimmer in and let my lawyer deal with BMW and the $450? Also, what are the chances of BMW fixing how they reported my lease to the credit companies after the lease has ended? Is there some legal leverage one can use against them?

[justbroke]

Whether they can charge a fee is based on what's in your contract. I'm pretty sure that BMW America would have provisions for "attorney fees and costs" in their lease agreements. I would also say that IIB does not seem to affect the Auto Enhanced Score as much as you believe it does. My auto enhanced score was 690 when I replaced one of my cars. The affect of the bankruptcy is going to hurt the score more than IIB. The IIB is different from a repossession or a "voluntary" repossession.

Do you owe the fee? Hard to Tell. But it does depend on the terms of the lease. The fact is, that you may have assumed the lease (kept the lease) and that assumption comes with the terms that were in the lease at that time. Actually, I'm not sure that you assumed the lease. Maybe this is why it is reporting the way it is, IIB, and this is why no one pressured you to pay the $450.

You can't leverage them "reporting" to a credit bureau. Besides, if they start reporting and you've been $450 past due for months... that would severely affect your score.

[Redsox]

Hey "Justbroke" I am not sure what IIB is? The 450 was added 1.5 years after the lease had started. I was under the impression that they would have to file a claim in my Chapter 13. I have a 650 Fico non-auto enhanced. I am planning on getting a loan for a car in Decmeber and already have the courts approval up to 17k. I just don't want a 25% loan because that is nothing short of rape.

[justbroke]

Oh, you are in an active Chapter 13.

With a 650 FICO Auto Enhanced, you should get Tier 3 financing and it should be less than 10%. Additionally, something else is affecting your credit score. How long have you been in Plan?

[Redsox]

Oh, you are in an active Chapter 13.

With a 650 FICO Auto Enhanced, you should get Tier 3 financing and it should be less than 10%. Additionally, something else is affecting your credit score. How long have you been in Plan?

We have been in a chapter 13 for 3 years now. We will see how it goes going to carmax this weekend.

[justbroke]

We have been in a chapter 13 for 3 years now. We will see how it goes going to carmax this weekend.

Don't just settle for their rates. You should "shop" the loan with your bank and/or a credit union.

[Redsox]

Don't just settle for their rates. You should "shop" the loan with your bank and/or a credit union.

Yes. You are correct, i will shop around and report back here what i have found.

[justbroke]

Yes. You are correct, i will shop around and report back here what i have found.

Shopping for auto credit within a 14 day period will not impact your score. They treat it as one inquiry. (Although I believe the scoring model starts to include them after the 14 days window has elapsed. I got hit with a bunch of inquiries, but within the window, my Auto Score stayed the same.) Those darn automobile dealerships like to submit your application to "multiple" banks at the same time. That's why I like blank checks and why I love Navy Federal!

[Redsox]

Ok, so i started working with a dealer. They said that i have to come to the dealer with the down payment, order to incur debt, statements for electrical bill, and two paystubs. They said they have to submit to court for approval. I think they are BSing me because i was under the impression that once you receive the order to incur debt you had court approval. Maybe they meant the underwriter. I just dont trust car dealers.

[justbroke]

They must mean for underwriting purposes. The order to incur debt should already include a limit that you can't exceed. Have you thought about going through your own bank or shopping through one of the "blank check" places like Capitol One Auto Finance? I'm not recommending any particular one, but I do not allow "just" the automobile dealership to run credit. In fact, I have never walked into a dearlership without already having financing (either through the brand (e.g. Ford Motor Credit, Honda Finance, Toyota Financial Services, etc) or a bank).

[Redsox]

They must mean for underwriting purposes. The order to incur debt should already include a limit that you can't exceed. Have you thought about going through your own bank or shopping through one of the "blank check" places like Capitol One Auto Finance? I'm not recommending any particular one, but I do not allow "just" the automobile dealership to run credit. In fact, I have never walked into a dearlership without already having financing (either through the brand (e.g. Ford Motor Credit, Honda Finance, Toyota Financial Services, etc) or a bank).

Do you think a local bank would work with someone in an active chapter 13? Does Capitol One have good acceptable rates for chapter 13 folks? Any help would be appreciated.

[justbroke]

Do you think a local bank would work with someone in an active chapter 13? Does Capitol One have good acceptable rates for chapter 13 folks? Any help would be appreciated.

I can't answer that personally because I did not try to buy anything while in my Chapter 13. I believe that if you're otherwise credit qualified, scorewise, they use normal interest rates for your score. They typically require, however, a discharge order or permission to incur debt. I know that when I refinanced after my case was converted and discharged, one creditor required me to send them the discharge order, but that was that. I received a rate of 7.79% on that loan on a used vehicle... so that wasn't bad at all!

I would think a credit union may be "nicer" about it, if you can get into the credit union. I'm not sure about CapOne Auto Finance.

[Redsox]

Ok...got back from CarMax and got approved through Roadloans at 17% with 5k down. I think 17% is freakin shi$&y but dont really have a choice. Shoul be illegal to charge this much over prime. Anyone have any ideaa to get the rate lower.

[justbroke]

I would shop a local credit union or 2. Yes, 17% is bad, but in the grant scheme of things... having a car may be worth it. If you keep your credit clean, you should be able to refinance under 10%, but I, unlike banks, make no promises that you will be able to. If you only applied through RoadLoans, you probably need to shop Capitol One Auto Finance, maybe Wells Fargo Auto Finance, and maybe a CU (or 2).

I can't believe they want $5K down with that 17%.

[Redsox]

So my BMW lease came to an end and I brought it to the dealer and turned it in. During the inspection the 18 y/o girl marks down that the tire tread is too low so they are going to charge me 300 bucks/tire for 2 tires. The car has 13k on it. So ridiculous. Anyway, I get an email from BMW stating that my Lease end charges are $1500. Since my Lease was included in my Chapter 13 but paid outside the plan, Will BMW file a claim with our plan or should I pay these charges? I don't have 1500 so I am wondering how this is going to get paid.