Need help about Leased Vehicles and the option to purchase

LeeD31 · 01-16-2008, 12:56 PM

If I signed a contract to lease for 3 years, is there any option available for me to purchase before the 3 year term ends?

bighindu79 · 01-16-2008, 01:01 PM

You could buy out before the lease ends, which is pretty much breaking the lease contract and paying the penalties that go along with that. If you can stomach the heavy penalty $$$

then yes. Although, I don't think I will be alone in saying this, DON'T do it!

JackMac · 01-16-2008, 01:43 PM

What penalties for early buyout?

You just have to pay all of your outstanding payments, plus the residual value listed in your lease agreement, plus disposition fee, minus security deposit.

LeeD31 · 01-16-2008, 03:00 PM

That's what I thought too... I thought the penalty only applied if I were to break the lease before its 3 year term.

Lassaxi · 01-16-2008, 03:24 PM

Take a look at your lease agreement, as it may shed some light on this.

If I wanted to buy out my lease early, I would simply owe the balance due on the lease (unpaid interest plus unpaid depreciation), plus the residual, minus the security deposit/cap. cost reduction, plus applicable taxes. The disposition fee is only paid if I return the car to the dealer.

You may have an early termination fee in your agreement. You may have to pay this to buy out the lease early, but if you do, you should not also have to pay the remaining interest on the lease, just the unpaid depreciation. Paying both unpaid interest and an early termination fee is double dipping, which is illegal in some states. For me, the unpaid interest basically is the early termination fee.

phantom330 · 01-16-2008, 04:14 PM

Quote:

Originally Posted by bighindu79

You could buy out before the lease ends, which is pretty much breaking the lease contract and paying the penalties that go along with that. If you can stomach the heavy penalty $$$

then yes. Although, I don't think I will be alone in saying this, DON'T do it!

please don't listen to this individual because they don't know what they are talking about. There is no early term penalty (at least with BMWFS) to end your lease early if you are purchasing it. In fact you can call and they will be more than happy to give you a financing quote and approx rate for the financing. Basically what you'll be paying is your residual plus remaining payments less the rental charges, plus tax if you finance it. If you need any help or suggestions let me know, I know the process all too well

335IAlpine · 01-16-2008, 10:34 PM

You can get a BMW credit card and depending on your purchases, the points can go towards your mileage cap (discount). Also, BMW USA has some great financing offers for lease returns, as low as 2.9%. One thing about BMW is they never want to turn away an exisiting cutomer...

01-16-2008, 12:56 PM	#1
LeeD31 First Lieutenant 88 Rep 343 Posts Drives: YMB F80 M3\EB 328xi Tour\G01X3 Join Date: Jun 2007 Location: Canada iTrader: (0)	Need help about Leased Vehicles and the option to purchase If I signed a contract to lease for 3 years, is there any option available for me to purchase before the 3 year term ends? __________________ MCB M3 Edition /VO 1M /MW X1 28i Karmaloop Rep Code: 'DUBST3P' for 20% off your order @ www.karmaloop.com
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01-16-2008, 01:01 PM	#2
bighindu79 Private First Class 30 Rep 183 Posts Drives: E93 M3 Jerez Black/Fox Red bla Join Date: Oct 2007 Location: CA iTrader: (0)	Yes, with a penalty You could buy out before the lease ends, which is pretty much breaking the lease contract and paying the penalties that go along with that. If you can stomach the heavy penalty $$$ then yes. Although, I don't think I will be alone in saying this, DON'T do it! __________________ Current: E93 M3 DCT/Jerez Black/Fox Red-Black Gone: E93 M3 DCT/Alpine White/Fox Red/Premium/Enhanced sound/Convenience Pkg. ED: 10/04/2010
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01-16-2008, 01:43 PM	#3
JackMac Recovering BMW Addict 154 Rep 1,914 Posts Drives: <OO (\|\|\|)(\|\|\|) OO> Join Date: Nov 2005 Location: Southeast PA iTrader: (7) Garage List 2010 MINI John Coop ... [9.66]	What penalties for early buyout? You just have to pay all of your outstanding payments, plus the residual value listed in your lease agreement, plus disposition fee, minus security deposit.
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01-16-2008, 03:00 PM	#4
LeeD31 First Lieutenant 88 Rep 343 Posts Drives: YMB F80 M3\EB 328xi Tour\G01X3 Join Date: Jun 2007 Location: Canada iTrader: (0)	That's what I thought too... I thought the penalty only applied if I were to break the lease before its 3 year term. __________________ MCB M3 Edition /VO 1M /MW X1 28i Karmaloop Rep Code: 'DUBST3P' for 20% off your order @ www.karmaloop.com
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01-16-2008, 03:24 PM	#5
Lassaxi Major 10 Rep 1,035 Posts Drives: April ED - E90 328xi Join Date: Nov 2006 Location: Boston iTrader: (0)	Take a look at your lease agreement, as it may shed some light on this. If I wanted to buy out my lease early, I would simply owe the balance due on the lease (unpaid interest plus unpaid depreciation), plus the residual, minus the security deposit/cap. cost reduction, plus applicable taxes. The disposition fee is only paid if I return the car to the dealer. You may have an early termination fee in your agreement. You may have to pay this to buy out the lease early, but if you do, you should not also have to pay the remaining interest on the lease, just the unpaid depreciation. Paying both unpaid interest and an early termination fee is double dipping, which is illegal in some states. For me, the unpaid interest basically is the early termination fee. __________________ May 3, '07European Delivery, Redelivered on 6/11/07 - Monaco Blue/Beige, Steptronic, ZPP, ZCW, PDC, iDrive/Navi with RTTI, Logic 7, Xenons, HD Radio
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01-16-2008, 10:34 PM	#7
335IAlpine Enlisted Member 6 Rep 33 Posts Drives: 2008 E90 335i ALPINE WHITE Join Date: Jan 2008 Location: CALIFORNIA iTrader: (0)	You can get a BMW credit card and depending on your purchases, the points can go towards your mileage cap (discount). Also, BMW USA has some great financing offers for lease returns, as low as 2.9%. One thing about BMW is they never want to turn away an exisiting cutomer...
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