[arn]

I just called bmw financials to see how much it would cost me to turn in my car today and cancel the lease contract. i have 22 months left on the lease and they said it'll cost me $13000+/- plus 2500 i have in deposite, so they want $15500 to cancel the lease. I want the xi now

[puck724]

thats a lot of money...i dont know anythign about this stuff though...

[blueStreak]

check out leasetrader.com if you want out.

[nostrum09]

It's a contract, so they're not going to let you out of it for nothing. They'll require you to make the rest of the payments since that's what you're contractually obligated to do, unfortunately. Like blueStreak said, take a look at the idea of lease swapping -- it will get you out of your current lease, but be prepared to shell out some money most likely. A lot of lease swaps end up being partially subsidized by the original lessee to make it more attractive to the new lessee.

[arn]

I know terminating the lease will cost me like couple of thousand, but i didn't think it'll be in the 5 digits. I guess I won't be getting the xi with mystic blue. NO MORE leases for me, the car is so fun to drive that i put 3000 miles on it in one month. now we'll see how much miles it'll have on there when the lease expires

[Socom]

Whoa...hold on...BMWFS will work with you to sell your car to another individual. This isn't like leasetrader where you're still responsible for the miles etc etc. You find a buyer, BMWFS will send u the paperwork. It costs about $400 and is non-refundable (ie, buyer doesn't qualify,...too bad for you). BMWFS will handle the paperwork to transfer the new lease into the buyers name. In this way, you have no attachments to the vehicle.

[mattldm]

Actually BMWFS charges $450 to transfer a lease, and They will not find a person to take over your lease for you, but they will do all the paperwork to actually transfer the lease if you find a transferee.

Second - there are absolutely no fees what so ever to get out of your lease... All you have to do is pay off the current residual $ (which you can get through owners circle) and then the car is yours. Then you can turn around and sell it outright, and you are done.

Now there will be some fees associated with selling the car, so try to find a buyer before you pay off the lease.

Anyway you go, if you are upside down in the value, you are going to take it in the shorts!

[nostrum09]

Mattldm, that is wrong. Why wouldn't BMWFS want the rest of the payments for the lease? If what you said is correct, I could lease a $45k car with a $23k residual, and then pay off the $23k rightaway (after only a couple of lease payments) to make the car completely mine.

BMWFS will want the payments they are contractually owed. That's why leases should not be considered if you know or strongly suspect that your needs or financial situation may change soon (not that this is the case here).

[arn]

thanks guys... I think I'm going to stick with the lease, color preference and the xi is not worth going through all that hassel and money I guess.

[Accounting4Speed]

I think someone with some financial knowledge should step in here. Ok, so if you haven't guessed by my handle yet, i'm an accountant, so listen up.

You can pay BMWFS for the car now, you owe them the current residual value. You have paid interest on the borrowed funds up to date for the lease, so if you pay BMW for the current value of the vehicle, then the vehicle would be yours. It's the same principal as if you walked in and offered cash for the car. The reason BMWFS would do this is because of the Time Value of Money, inflation and interest would mean that BMW would be just as well off today with the residual value of the car as the sum of your principal and interest payments at the termination of the lease. If you don't understand TVM, i'm sorry...you should have gone to college and taken at least one finance or accounting course.

Hopefully this should clear up the grey areas for you folks.

[dxk]

Originally Posted by Accounting4Speed

I think someone with some financial knowledge should step in here. Ok, so if you haven't guessed by my handle yet, i'm an accountant, so listen up.

You can pay BMWFS for the car now, you owe them the current residual value. You have paid interest on the borrowed funds up to date for the lease, so if you pay BMW for the current value of the vehicle, then the vehicle would be yours. It's the same principal as if you walked in and offered cash for the car. The reason BMWFS would do this is because of the Time Value of Money, inflation and interest would mean that BMW would be just as well off today with the residual value of the car as the sum of your principal and interest payments at the termination of the lease. If you don't understand TVM, i'm sorry...you should have gone to college and taken at least one finance or accounting course.

Hopefully this should clear up the grey areas for you folks.

I didn't know graduates of community colleges are so arrogant nowadays. Anyway, he said he's got 22 months left on the lease, there is no way those payments will equal TVM, get a new calculator or take a course in a good school. If you were correct, I could lease the car, drive it for a month, then turn it in for the residual.

[Username18]

The residual quoted at the end of the lease term( ex 3 years and 12k miles) is not the same as the residual for the car at the current time, which is much higher. I assume the current residual reflects current miles and whatever else they use(maybe current tmv, ect.) I think this is where your getting confused with regards to residual...I should mention this is just my assumption I have no formal knowledge in this subject.

[Accounting4Speed]

Just to point out, I went to a top tier school and got a good degree. You must have attended some hack school like BC or an equivilant to not understand what i'm trying to say. Instead of attacking me, maybe you should re-read what I wrote until you can comprehend it. Or, I can try and simplify it for you since you seem to be at about a 5th grade reading level.

Current residual value, like username18 said, takes into account payments made and mileage based on the lease residual you were quoted. If you buy the car from BMW at that residual value and then sell the car on the open market, that is how you can exit from a lease before the end of the contract. BMWFS will not terminate a lease unless they are fulfilling the contract in some form.

[dxk]

Originally Posted by Accounting4Speed

Just to point out, I went to a top tier school and got a good degree. You must have attended some hack school like BC or an equivilant to not understand what i'm trying to say. Instead of attacking me, maybe you should re-read what I wrote until you can comprehend it. Or, I can try and simplify it for you since you seem to be at about a 5th grade reading level.

Current residual value, like username18 said, takes into account payments made and mileage based on the lease residual you were quoted. If you buy the car from BMW at that residual value and then sell the car on the open market, that is how you can exit from a lease before the end of the contract. BMWFS will not terminate a lease unless they are fulfilling the contract in some form.

Right, BC, at least you're within 10 miles. What you said now is not what you said originally. The present value of cash flows will never equal the current market value of the car (or more importanly the value of residual at the end of the lease + the remaining payments) if you're talking about the agreed residual which is an approximate value at lease end, which BMW came up with taking into account the varaible you've mentioned. Therefore, BMW will want all the money that was agreed upon (payments + residule) that will always be greater than the price he can get for the car now having 22 more months to go. He will lose money no matter what, the only question is how much. If he were to wait for another 15 months and then buy another Bimmer, he'd lose less, because he'd pay large % of interest and would be locked in another lease with still more interest to be payed to BMWFS
The present

[Accounting4Speed]

In case you didn't notice, you just repeated what I said using more words. I think you have the idea pinned down now, but you don't need to use so much text to convey the message.

[dxk]

Originally Posted by Accounting4Speed

In case you didn't notice, you just repeated what I said using more words. I think you have the idea pinned down now, but you don't need to use so much text to convey the message.

sure

[ward]

acountant fight acountant fight

where's that damn smiley where you sit back and eat popcorn???

[lux.sh]

Originally Posted by dxk

I didn't know graduates of community colleges are so arrogant nowadays.

that was un-called for. was that really necessary?

[Oz]

Smoked headlight thread and now this...

People really need to relax a bit here.. No need to insult each other because we disagree on a certain topic...

There is no need to call names or insult people here.. Why don't you guys log out and drive your bmw or something?

[dxk]

Originally Posted by ward

acountant fight acountant fight

where's that damn smiley where you sit back and eat popcorn???

I am not an accountant, you kidding? Accounting though is required part of MBA program so couldn't skip it. I hate that stuff, I am in software

[E90RWC]

right now i have 24 payments left on my 48 month lease. if i decide get a e90 right now i could simply drop off my e46 and only be in negative equity $1000-1500. which is excellent. my car is in perfect condition with 12k miles only and always clean last time i tried to trade it in they said 1000 was my negative. i was happy

[cosmosblau]

Can we ban these guys?