One-Pay lease

[PK1]

I've been reading up on BMW's one-pay lease with a key area of focus being on what happens in case of a total loss. I think I have a generally good idea of how it works.

That said, does anyone here have any issues or bad experiences with one-pay that might be worth sharing? For example issues with refunds after a total loss?

[R N M]

What is the point to do a one-pay lease? If something happens to the car (totaled, theft, fire etc) then you have to deal with headache of getting your money back. BTW the taxes you will never recoup.

I always put zero down and pay only 1st month and DMV/reg fees. Why give $$$ upfront when you don’t have to?

[PK1]

$6K savings in tax and interest. In Texas, even on a lease taxes are based on the entire value of the car. With one-pay taxes are substantially less.

[NYG]

You need gap insurance if you do that.

You're paying the depreciation of the car in full before it actually fully depreciates per your terms. You need to cover the gap from what your insured value is vs. actual depreciation.

[White340]

I read somewhere one pay leases somehow don't lose money if totaled the moment you walk out of a dealership. Perhaps Bmw has insurance for this?

[NYG]

Originally Posted by White340

I read somewhere one pay leases somehow don't lose money if totaled the moment you walk out of a dealership. Perhaps Bmw has insurance for this?

I'd check this. I know Audi has gap by default, maybe BMW does too.

[RickFLM4]

Originally Posted by NYG

I'd check this. I know Audi has gap by default, maybe BMW does too.

BMW leases include gap insurance. I’d be surprised by any leasing company that doesn’t build it into the lease or require it separately because they would be exposed without it.

Edit: Also, gap insurance only covers gap between insurance proceeds and leasing company payoff. It doesn’t protect against losing money already paid which is what was noted in the other post. Not sure what insurance that would be other than replacement car. No different than buying a car for cash.

[PK1]

I called BMW finance to inquire about this which surprisingly was a total waste of time: the person I spoke to couldn't answer the question, and after putting me on hold for 5-10 min to ask around essentially told me that I need to read the lease (which is essentially what I had asked her to begin with: to give me written language around this program). When asked for a copy of the lease to read the specific language she said I needed to go to the dealer since I don't have an active order with them and hence they cannot share the language with me. When I said I have been a BMW customer for years, and have a current lease with them (this information was on her screen), and I am negotiating my next car but cannot finalize until I understand the terms, she said before I sign I would get a copy of the lease and that would be my opportunity to review the terms. I might have landed on the wrong person but it was clear I wasn't getting anywhere so I ended the call.

That said, a couple of salespeople from two different dealers told me exactly the same thing about how it works and one of them sent me an example of the lease. The language doesn't get into the mechanics of this, but it does essentially confirm the same thing the salespeople had told me. I also don't believe gap insurance would be needed basis the language.

I wanted to get some real life experiences with this in case anyone has gone through a situation requiring reimbursement to see whether they encountered any issues. Through an online search I have found examples of people who have used this program but couldn't find a case where someone actually had to get a reimbursement.

[quikM2]

BMW at least in Canada does the automatic gap insurance referenced above. I know from experience.

[Maitre_Absolut]

Originally Posted by PK1

I wanted to get some real life experiences with this in case anyone has gone through a situation requiring reimbursement to see whether they encountered any issues. Through an online search I have found examples of people who have used this program but couldn't find a case where someone actually had to get a reimbursement.

it likely varies by state as this crosses into insurance legislation

Originally Posted by quikM2

BMW at least in Canada does the automatic gap insurance referenced above. I know from experience.

Again varies by province. In QC, it is BMW finance who purchases the gap protection as the consumer protection laws say this is not the responsibility of the consumer (to have actual value < residual). In other provinces it could be mandatory for the consumer to purchase or that the finance co include in the lease.

[wam22]

First, GAP is included with a lease for almost every make except for Toyota.

You should get the prorated amount back. So for easy math, lets say the total is $36000 for 3 years (36 months) after taxes, fees, etc. If you total it halfway through, you should get back $1000 x 18 (remaining payment). Now TX taxes might complicate it a little since it is paid on the total upfront. My bet is that if taxes are $3000, then you get $33000 prorated back over the 36 months.