Question About Lease

[plazaman]

if u lease a for lets say 3 years and maybe around the 2nd year you want a different car (same manufacturer) could you trade in the car for something else and pay the difference if any and continue the lease?

[SANguru]

no.. the close end lease cannot be rolled over. They are separate contracts. Your payment before lease end is a combination of the residual value plus your remaining payments unless of course, you sell the car yourself to payoff the payoff amount.

Originally Posted by plazaman

if u lease a for lets say 3 years and maybe around the 2nd year you want a different car (same manufacturer) could you trade in the car for something else and pay the difference if any and continue the lease?

[rangerfan]

Originally Posted by SANguru

no.. the close end lease cannot be rolled over. They are separate contracts. Your payment before lease end is a combination of the residual value plus your remaining payments unless of course, you sell the car yourself to payoff the payoff amount.

Correct. Think of the lease as a contract to make X number of payment of $Y amount, and when the lease is over, you can buy the car for $Z (the residual). You can get rid of the car at any point if you are willing to pay the total of your remaining payments plus the residual. There is no discount on interest as there would be on a simple bank loan. If you choose not to buy the car and not lease another car from the same manufacturer, you will likely get socked with a 'disposition fee' of $350 to $500. Couple that fee with the outrageous 'document fee or bank fee' at lease inception, and you are talking over $1k in fees alone (not including any security deposit that may or may not be required).

[plazaman]

how much would it cost to terminate a lease at the end of 2 years if i wanted to?

Few people an another forum said BMW is flexible if you are going to get a another car with them.

[UCrewX5]

Originally Posted by plazaman

how much would it cost to terminate a lease at the end of 2 years if i wanted to?

Few people an another forum said BMW is flexible if you are going to get a another car with them.

Best way to find out is to contact BMW Finance and ask.

Another option is to find someone to take over the lease. I've never leased a vehicle myself, so I have no experience with these firms, but here's a few I've heard about -

http://www.leasetrader.com/e/home.asp

http://www.swapalease.com/

http://www.takemypayments.com/

[plazaman]

i'll give them a call.

just got my x5 1.5 weeks ago, just thinking ahead

[rangerfan]

Originally Posted by plazaman

how much would it cost to terminate a lease at the end of 2 years if i wanted to?

Few people an another forum said BMW is flexible if you are going to get a another car with them.

It will cost the rest of the payments due plus the disposition fee. If you want to get into another BMW, they will add the money you owe to your new contract and will probably waive the disposition fee. But they have no obligation to do anything as your are contractually bound to pay all of the payments. If you get lucky and try to make a deal at the end of a model year (and at the end of a month) you might get a good deal on the leased trade from the dealer.

I know a guy that got into an MB SL500 last year--I think it was done on swaplease.com. . Car had a sticker of about $105,000. The doctor that was leasing had to ditch it asap. Anyway, my friend (also a doctor) got the car for 21 remaining payments--25 months left of the lease, with something like 40k miles left as well--the doctor was so desperate to ditch the car that he paid 4 payments for my friend who took over the car. My friend got lucky--until he hit a hit pothole that ripped off the front air dam and cracked the bumper, a repair that cost over $4,000 when all was said and done.

One more lease story. I was going to lease an X5 4.4, but instead I leased an Audi allroad in summer '03. Deal was below cost, interest rate of 0.09%, and I got cash back coming out of another Audi. It was insane, and I loved the car. Until I heard about section 179 in November of 2003. So I bought my X5 and tried to ditch the allroad. To trade it in, even for a VW Touareg at the local massive Audi/VW shop, and even with my unbelievable deal from only 4 months ago, I was upside down over $6,000. I was willing to eat the $6k because the section 179 deal made it more than worth it to me, but I still treid to find the right person to take the car off my hands. So I spent a month until I found someone to take over the lease. However, I am still on the lease. If they stop paying for it, the bank can come after me. The other owner got into an accident soon after taking over the car, and my insurance company was coming after me looking for info. So the moral is, beware!! Your name is on the contract, and the bank will not take it off, because they don't need to. In fact, many banks will not even let you transfer a leased car from one person to another.

[DanDE]

After about 2.5 yrs on a 36mo lease on my 4.6, the BMW dealers were willing to take it back and start a new lease/sell me a new BMW. The payout on the 4.6 was less than the residual, so no monies would have been due or tacked on to the new vehicle pricing.

You may find as I did, in going to a different brand (Jeep, Lexus, Mercedes, whatever), those dealers will do the same or better for you. Depends on the payoff, your residual, and how much they want to move new vehicles.

[bimmerfan]

BMW finance is pretty laxed about this kind of thing. If you are through BMW Finance, and want to essentially trade yours in on a new BMW then you should be ok.

I hear GMAC and some others force you to cough up the remaining payments etc. That has not been my experience with BMWFS.

However some dealers will slam dunk you into financing with a third party such as Chase, in which case you are probably going to be stuck for the term of the lease.

[plazaman]

Thanks Guys, i'll see when the time comes. Im pretty sure they will work with me since its gonna be my 4th bmw. But for now, let me enjoy the 4.8!