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Car Forum / BMW Cars / September 2005early lease termination
my 325xi's lease ends in march 2006. i need a larger car, probably an X5 or even a 5 series. is it possible to terminate the lease earlier? anyone ever do this before? > my 325xi's lease ends in march 2006. i need a larger car, probably an > X5 or even a 5 series. is it possible to terminate the lease earlier? > anyone ever do this before? There are places who claim to be good at getting you out of your lease early. You'd have to be pretty fast, assuming you're leasing thru BMW - I don't think they allow lease transfers in the last 6 months of the lease. Go to www.swapalease.com to see what they say. There are other places out there, but this is the one I've heard the most about. I have no connection with them, so my info is just what I read on the Internet. Tim/ > my 325xi's lease ends in march 2006. i need a larger car, probably an > X5 or even a 5 series. is it possible to terminate the lease earlier? > anyone ever do this before? Have you talked to your local dealer? They should be able to show the numbers on a lease buyout and an X5 purchase... Mike P > my 325xi's lease ends in march 2006. i need a larger car, probably an > X5 or even a 5 series. is it possible to terminate the lease earlier? > anyone ever do this before? ___________________ My wife just did the same thing with 5 months left on her lease. You can do it, and any dealer will take your money if your handing it out. You just have to look at the numbers and ask yourself if it's worth the cost to you, because you almost certainly will pay more than if you waited until lease end. Our cost was about $1600 USD more than if we had waited, but decided it was worth it. Also didn't have to worry about over mileage charges, which she was certainly going to run into had she kept the car. > My wife just did the same thing with 5 months left on her lease. You > can do it, and any dealer will take your money if your handing it out. You > just have to look at the numbers and ask yourself if it's worth the cost > to you, because you almost certainly will pay more than if you waited > until lease end. Maybe I am missing something, but why would it cost more to make the final 5 months of payments at one time than it would have to make the same five payments 1 per month for 5 months? >> My wife just did the same thing with 5 months left on her lease. You >> can do it, and any dealer will take your money if your handing it out. [quoted text clipped - 5 lines] > 5 months of payments at one time than it would have to make the same five > payments 1 per month for 5 months? It really doesn't. That's basically what you are doing. You just dont get use of the vehicle for those months and you have a new car payment, so it does cost you more. Also some places may charge you an early termination fee >>> My wife just did the same thing with 5 months left on her lease. You >>> can do it, and any dealer will take your money if your handing it out. [quoted text clipped - 10 lines] > does cost you more. Also some places may charge you an early termination > fee Also, there is a little fee that they sometimes charge called a transport fee, usually $300-$400. That they will charge you if the dealership you turn the car into doesn't buy the car from the finance company and sell it themselves. > Also, there is a little fee that they sometimes charge called a transport > fee, Nah, BMWFS calls that a "Disposition Fee". Item #7 in your BMWFS lease agreement. > usually $300-$400. > That they will charge you if the dealership you turn the car into doesn't > buy the car from the finance company and sell it themselves. Actually the fee is charged if *you* don't by the car at lease end (again, check Item #7). If you buy or lease another BMW they will forgive the "Disposition Fee". But that has nothing to do with early payment or early termination. That is a cost every lessee is exposed to and knows about at lease execution. >> Maybe I am missing something, but why would it cost more to make the >> final 5 months of payments at one time than it would have to make the >> same five payments 1 per month for 5 months? > > It really doesn't. That's basically what you are doing. You just dont get > use of the vehicle for those months Why don't you get the use of the car for those months. You've paid the lease, you've honored the agreement, and you still get the 5 months use of the car in question. Why are you saying you don't get to use the car? So maybe you have an extra car for a few months, but considering miles allowed it just might be a good thing to minimize the miles accrued on both cars for that 5 month period by using both. I cannot imagine paying off the lease early and then giving them the car back early too....except under extreme circumstances. > I cannot imagine paying off the lease early and then giving them the car > back early too....except under extreme circumstances. Or not wanting to insure a 2nd car for those months. Or, some people can't qualify to carry a 2nd lease at the same time. >> I cannot imagine paying off the lease early and then giving them the car >> back early too....except under extreme circumstances. > Or not wanting to insure a 2nd car for those months. Waste off $ 1,600 dollars in lease payments so you can save 5 months worth of insurance premiums? > Or, some people can't qualify to carry a 2nd lease at the same time. He is only "carrying" one lease...the first one has been paid in full even if it hasn't terminated. >> My wife just did the same thing with 5 months left on her lease. You >> can do it, and any dealer will take your money if your handing it out. [quoted text clipped - 5 lines] > 5 months of payments at one time than it would have to make the same five > payments 1 per month for 5 months? Each transaction is really unique -- If the trade in value of the car is higher than the residuale plus the remaining payments then the dealer may be able to take it straight up with no additional payments. Or they may tell you that they're doing that and roll some additional into the new lease. Or you may need new tires in a couple months, how much is that? Mike >>> My wife just did the same thing with 5 months left on her lease. You >>> can do it, and any dealer will take your money if your handing it out. [quoted text clipped - 11 lines] > tell you that they're doing that and roll some additional into the new > lease. Or you may need new tires in a couple months, how much is that? Look at my earlier post Mike, a couple days ago I already said I have done that a 2 times with a BMW. My reply was in strict response to the notion that paying off the lease in one lump sum and turning in the car would cost more than keeping the car and paying of the lease in five remaing months. > My wife just did the same thing with 5 months left on her lease. You > can do it, and any dealer will take your money if your handing it out. You [quoted text clipped - 4 lines] > was worth it. Also didn't have to worry about over mileage charges, which > she was certainly going to run into had she kept the car. You also have the option of selling the car, in concert with your lease company, and if it sells for above the residual that money can be used against the balance of the lease. I have done this a couple times. It doesn't work with most cars, but BMW's often find high prices in the used market (if you connect with the right buyer :^)....particularly now that BMW's CPO program is doing so well and holding prices up. Thanks for the replies. You've given me some good research points. "" wrote: > my 325xi's lease ends in march 2006. i need a larger car, > probably an > X5 or even a 5 series. is it possible to terminate the lease > earlier? > anyone ever do this before? Unless you are within about three months of normal lease termination, an early termination could be expensive. But that really depends on the circumstances of your particular situation. For example, if you had made a large down payment or used a valuable trade-in at the beginning of your lease, getting out early may not be a big problem. There’s a lot of information about early termination at [url=http://www.leaseguide.com/index2.htm]www.leaseguide.com . Al
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