05-04-2017, 11:50 AM | #617 | |
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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, 05:02 PM | #619 |
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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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05-16-2017, 05:12 PM | #621 |
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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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05-16-2017, 11:42 PM | #623 | |
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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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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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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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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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Current Car: 2018 F80 M3CS, SMB, DCT, ZEC, MPE Recently Departed: 2020 F87 M2C, LBB, ZEC, 6MT (Euro Delivery Aug. 29, 2019, totaled by an idiot in a Camry who then ran from the scene) Wife's Prior Car: 2018 F80 M3, Yas Marina Blue, DCT, Black 19s, Carbon Structure Anthracite Cloth/Leather Combination, Driving Assistance Package (Euro Delivery Oct. 9, 2017) |
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09-12-2017, 03:14 PM | #629 | |
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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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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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Wife's Car: 2020 X4M Competition, Alpine White on Black Alcantara and Biege
Current Car: 2018 F80 M3CS, SMB, DCT, ZEC, MPE Recently Departed: 2020 F87 M2C, LBB, ZEC, 6MT (Euro Delivery Aug. 29, 2019, totaled by an idiot in a Camry who then ran from the scene) Wife's Prior Car: 2018 F80 M3, Yas Marina Blue, DCT, Black 19s, Carbon Structure Anthracite Cloth/Leather Combination, Driving Assistance Package (Euro Delivery Oct. 9, 2017) |
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09-12-2017, 09:21 PM | #631 | |
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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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Wife's Car: 2020 X4M Competition, Alpine White on Black Alcantara and Biege
Current Car: 2018 F80 M3CS, SMB, DCT, ZEC, MPE Recently Departed: 2020 F87 M2C, LBB, ZEC, 6MT (Euro Delivery Aug. 29, 2019, totaled by an idiot in a Camry who then ran from the scene) Wife's Prior Car: 2018 F80 M3, Yas Marina Blue, DCT, Black 19s, Carbon Structure Anthracite Cloth/Leather Combination, Driving Assistance Package (Euro Delivery Oct. 9, 2017) |
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11-19-2017, 08:34 AM | #634 | |
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12-15-2017, 04:33 PM | #635 | |
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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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