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      05-04-2017, 11:50 AM   #617
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Quote:
Originally Posted by Bms26 View Post
Thanks for the feed back. That's what I was after. Original reply hit me the wrong way. Now I'm leaning toward purchasing instead of leasing. My main concern is how I'll come out 3 or 4 years down the road when I want the next car. Will I lose more when I trade/sell vs leasing?
Hmm... well leasing lets you get out every 3 years on BMWs schedule. Getting out of a lease early is harder (lease swap or something, or taking a huge hit on trading in a leased car).

Getting out of a purchased car is easier because YOU own it. In both cases you are paying for the depreciation (its a somewhat fallacy that you dont pay the depreciation on a lease.. thats basically all you are paying lol).

If one likes a new car every 3 years or so, and is comfortable with making monthly payments forever, leasing is good (I have 2 leased BMWs). If you are not a person who keeps a car 7+ years to get the value out of it, then leasing is good.

If you have a bunch of liquidity and dont want to concern yourself about mileage, and / or want to add things to the car, then purchasing would be for you.

Leasing has a lease acquisition fee of 925 (unavoidable) as well as the lease end fee of 350 (I think its 350) which is avoidable if you get into another BMW. Thats an additional 1200+ in fees for leasing, which is partially offset by the subsidized residual.

If I were you (but lets stress I am not), I would likely lease the car, since I know I get antsy after 2-3 years.
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      05-16-2017, 04:39 PM   #618
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is cap cost reduction a bad thing to do on a lease or does it not make much of a difference in the long-run of the lease?
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      05-16-2017, 05:02 PM   #619
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Originally Posted by mrduder View Post
is cap cost reduction a bad thing to do on a lease or does it not make much of a difference in the long-run of the lease?
Generally a bad idea because a lease is just a rental. In the event the car is totaled you could lose the money you put in for cap cost reduction or even if you transfer the lease or do an early turn in, you lose that money. If you want to feel better about a lower payment, take the money put it in a separate account and set up an auto transfer every month. Tat way you still control the cash and get a cheaper monthly payment.
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      05-16-2017, 05:10 PM   #620
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Quote:
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Quote:
Originally Posted by mrduder View Post
is cap cost reduction a bad thing to do on a lease or does it not make much of a difference in the long-run of the lease?
Generally a bad idea because a lease is just a rental. In the event the car is totaled you could lose the money you put in for cap cost reduction or even if you transfer the lease or do an early turn in, you lose that money. If you want to feel better about a lower payment, take the money put it in a separate account and set up an auto transfer every month. Tat way you still control the cash and get a cheaper monthly payment.
Ok, we'll say you do go all the way through the end of the lease. No accidents. There's really no difference right? It's not ideal to do, but if you didn't trade in early and no accidents, it's really no different than just paying more monthly, right?
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      05-16-2017, 05:12 PM   #621
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Originally Posted by mrduder View Post
Ok, we'll say you do go all the way through the end of the lease. No accidents. There's really no difference right? It's not ideal to do, but if you didn't trade in early and no accidents, it's really no different than just paying more monthly, right?
Correct, it's just extra risk that there won't be an issue.
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      05-16-2017, 05:13 PM   #622
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Quote:
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Quote:
Originally Posted by mrduder View Post
Ok, we'll say you do go all the way through the end of the lease. No accidents. There's really no difference right? It's not ideal to do, but if you didn't trade in early and no accidents, it's really no different than just paying more monthly, right?
Correct, it's just extra risk that there won't be an issue.
Got it. Thanks
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      05-16-2017, 11:42 PM   #623
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Quote:
Originally Posted by mrduder View Post
is cap cost reduction a bad thing to do on a lease or does it not make much of a difference in the long-run of the lease?
Google is your friend
http://www.carsdirect.com/auto-loans...n-when-i-lease

http://www.realcartips.com/leasing/0...ar-lease.shtml

http://www.bankrate.com/loans/auto-l...g-booby-traps/

Those are just the first three hits...

So it is not a bad thing to do, it is a stupid thing to do (and no, I'm not calling or implying you are stupid - because you were smart enough to ask)
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      08-16-2017, 09:55 AM   #624
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Can you drop MSDs on a lease takeover?
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      08-16-2017, 10:04 AM   #625
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Quote:
Originally Posted by Vectors2final
Can you drop MSDs on a lease takeover?
No. If an MSD was used initially, them it's locked in until lease turnover. In this situation, there are 3 main options:
1- Original leasee loses the MSD money and the new lease gets the money at lease turn in.
2- New lease pays the original leasee the amount of the MSD and gets it back at lease turn in.
3- New leasee gives some of the money to the original leasee and gets the MSD cash at lease turn in.

This is one consideration people used to make about using MSDs. It can be an extra hurdle to overcome in a lease transfer.

Soon it will not be an issue as the program was phased out and is no longer available.
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      08-16-2017, 10:19 AM   #626
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Originally Posted by OneRib View Post
Soon it will not be an issue as the program was phased out and is no longer available.
Thanks for the response!

That stinks about the MSD thing.
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      09-12-2017, 12:49 AM   #627
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Hi I have couple questions about early lease termination:

1. How does BMWFS calculate the payoff amount if I decide to buy the car halfway through the lease?

2. Does BMWFS has restriction on how early I can terminate a lease and pay-off the car?

Thanks.
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      09-12-2017, 01:11 AM   #628
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Quote:
Originally Posted by kcdc368 View Post
Hi I have couple questions about early lease termination:

1. How does BMWFS calculate the payoff amount if I decide to buy the car halfway through the lease?

2. Does BMWFS has restriction on how early I can terminate a lease and pay-off the car?

Thanks.
1. How much you have paid to principal from final purchase price. Your monthly payments are likely ~75% principal and ~25% rental charge (interest). They add up all the principal payments and subtract it from the original purchase price. Thats how they calculate payoff. If you log onto BMWFS online you can see your payoff at any time, literally just click -payoff quote.

2. No you could lease the car today and pay it off completely tomorrow with no repercussions or fees. If you want to terminate early and turn it in, can only be 120 days out and have to pay balance of payments, before the 120 days have to pay the payoff amount.
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      09-12-2017, 03:14 PM   #629
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Quote:
Originally Posted by Thescout13 View Post
1. How much you have paid to principal from final purchase price. Your monthly payments are likely ~75% principal and ~25% rental charge (interest). They add up all the principal payments and subtract it from the original purchase price. Thats how they calculate payoff. If you log onto BMWFS online you can see your payoff at any time, literally just click -payoff quote.

2. No you could lease the car today and pay it off completely tomorrow with no repercussions or fees. If you want to terminate early and turn it in, can only be 120 days out and have to pay balance of payments, before the 120 days have to pay the payoff amount.
Thank you for the reply.

Do you mean the monthly depreciation amount when you say "principal"? So I would pay the residual value on the lease contract plus the remaining monthly depreciation amount to buyout the car (monthly depreciation x number of months remaining)?
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      09-12-2017, 03:24 PM   #630
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Quote:
Originally Posted by kcdc368 View Post
Thank you for the reply.

Do you mean the monthly depreciation amount when you say "principal"? So I would pay the residual value on the lease contract plus the remaining monthly depreciation amount to buyout the car (monthly depreciation x number of months remaining)?
Well, yeah I guess that is one way to look at it.

What I mean by principal is "non-interest" portion of your payments. So think of a lease as a loan for, say, $60K, of which you only have to pay $25k over the life of the loan in payments, with the remaining $35k (residual) as a balloon that you can pay or just turn in the car. The payoff would then be $60k minus the amount of "non-interest" portion of your payments. Or as you put it, the amount of "depreciation" you pay that is non-interest.

Hope that helps clarify. However, like I said earlier, with BMW FS this is available at any time on the website. You will never have to do this math.
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      09-12-2017, 09:21 PM   #631
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Quote:
Originally Posted by kcdc368 View Post
Thank you for the reply.

Do you mean the monthly depreciation amount when you say "principal"? So I would pay the residual value on the lease contract plus the remaining monthly depreciation amount to buyout the car (monthly depreciation x number of months remaining)?
Thescout13's info is really good - and, normally, worst case, you can count on paying the remaining lease payments and then buying it out. Meaning, you are completely upside down most of the time. For me, with my 650GC, it was normally about $10K to get out of my lease.

The rare exception is when your car is worth more than the current buyout. But I have not seen that happen in a long while.

Long story short, don't even think about leasing if you plan on buying it out early. It will be a a very expensive proposition.
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      11-17-2017, 07:21 AM   #632
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Might be an ignorant question but never done it before. I’m in the market for an f80 and one car in particular has an attractive current buyout figure. How does that work? Does the current owner first need to buy the car out then sell to me or can I pay bmwfs directly? I pm’d the seller and he thinks he needs to buyout the lease (pays sales tax on the buy) and then must sell it to me. If I can pay bmwfs directly and pay the sales like I normally would on a buy, that would be best.

edit: just talked to bmwfs. They said I can payoff the car but the title will be issued in the current owners name. They said the current owner could request that the title be sent directly to me but that wouldn't remove his name from the title. Would anyone have a creative way to have him transfer the title to me without him incurring the sales tax hit?

Last edited by golfinz; 11-17-2017 at 09:40 AM..
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      11-17-2017, 01:04 PM   #633
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Quote:
Originally Posted by golfinz View Post
Might be an ignorant question but never done it before. I’m in the market for an f80 and one car in particular has an attractive current buyout figure. How does that work? Does the current owner first need to buy the car out then sell to me or can I pay bmwfs directly? I pm’d the seller and he thinks he needs to buyout the lease (pays sales tax on the buy) and then must sell it to me. If I can pay bmwfs directly and pay the sales like I normally would on a buy, that would be best.

edit: just talked to bmwfs. They said I can payoff the car but the title will be issued in the current owners name. They said the current owner could request that the title be sent directly to me but that wouldn't remove his name from the title. Would anyone have a creative way to have him transfer the title to me without him incurring the sales tax hit?
The only trick would be to have a dealer buy it from him and then flip it to you for the payoff. Although that is highly unlikely. But I am sure if you throw in $500 or $1000 over the buyout the dealer will bite.
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      11-19-2017, 08:34 AM   #634
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Quote:
Originally Posted by golfinz View Post
Might be an ignorant question but never done it before. I’m in the market for an f80 and one car in particular has an attractive current buyout figure. How does that work? Does the current owner first need to buy the car out then sell to me or can I pay bmwfs directly? I pm’d the seller and he thinks he needs to buyout the lease (pays sales tax on the buy) and then must sell it to me. If I can pay bmwfs directly and pay the sales like I normally would on a buy, that would be best.

edit: just talked to bmwfs. They said I can payoff the car but the title will be issued in the current owners name. They said the current owner could request that the title be sent directly to me but that wouldn't remove his name from the title. Would anyone have a creative way to have him transfer the title to me without him incurring the sales tax hit?
If you could take over the lease, the buy out would be yours. Otherwise, as pointed out, work something out with the dealer (if they are open to it) where you will pay them an additional $1K or something and sell you the car - that of course means they have to buy the car from BMW and sell it to you - so there is some work involved and... if it really is a good buyout number they might say "no, sorry, we can make a lot more money selling to someone else". But you don't know until you talk to the dealer and see what they are willing to do.
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      12-15-2017, 04:33 PM   #635
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Quote:
Originally Posted by golfinz View Post
Might be an ignorant question but never done it before. I’m in the market for an f80 and one car in particular has an attractive current buyout figure. How does that work? Does the current owner first need to buy the car out then sell to me or can I pay bmwfs directly? I pm’d the seller and he thinks he needs to buyout the lease (pays sales tax on the buy) and then must sell it to me. If I can pay bmwfs directly and pay the sales like I normally would on a buy, that would be best.

edit: just talked to bmwfs. They said I can payoff the car but the title will be issued in the current owners name. They said the current owner could request that the title be sent directly to me but that wouldn't remove his name from the title. Would anyone have a creative way to have him transfer the title to me without him incurring the sales tax hit?
may be late replying to this thread, but I have done this twice in the past, sold my Mercedes GL450 and BMW X5 before lease end. Buyer wrote a check to BMW FS, or Mercedes FS, the title came to me and then I turned it over to the new owner and he paid taxes when he registered the vehicle at the DMV. I never had to pay any taxes. My credit union helped me out twice with this process. This is better than doing a lease swap. Btw, I made money both times, because both cars were selling for way more than payoff, so I had the owner write the payoff and difference to me. You can also write a certified letter that says you will transfer the vehicle upon receiving the title, you and the new owner can sign it. Anyways, process was pretty easy.
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      02-23-2018, 06:25 PM   #636
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How do you guys negotiate 5k+ off the MSRP on leases? And would you be able to do that for individual orders as well? Thanks
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      02-24-2018, 10:57 AM   #637
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maybe a little off course here but is there a way to pay down the monthly? example would be if I wanted someone to take over my lease and as an incentive I would pay down the lease so it would be less monthly for the new guy?

more example. I have 25 months left. I pay BMW $2500 so the payment is $100 less a month?
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      02-24-2018, 04:05 PM   #638
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Originally Posted by NorCal f80 View Post
maybe a little off course here but is there a way to pay down the monthly? example would be if I wanted someone to take over my lease and as an incentive I would pay down the lease so it would be less monthly for the new guy?

more example. I have 25 months left. I pay BMW $2500 so the payment is $100 less a month?
You can't do that but you can give the new buyer the $2500 and they can use it to make each month less.
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