I have another year left on my BMW lease and the payments are just too much for me now. I want to get either a new or pre-owned Honda or Toyota (for much cheaper payments). Does that work? Or do I have to go back to BMW only if I want out of the lease? I don't mind paying the 12 months wrapped into my next car I just want my monthly payments down significantly.
2007-07-03 12:16:26 · 6 answers · asked by Andrea 2 in Cars & Transportation ➔ Buying & Selling
Here is a link that will answer your question.
http://www.insidercarsecrets.com/trading_a_lease.html
You might want to try re-negotiating the lease instead. You'll be way too upside down in such a deal, especially buying a cheaper (used!) car. There is no way you will reduce your payments that way.
Good luck.
2007-07-03 12:27:55 · answer #1 · answered by Wren )O( 5 · 1⤊ 0⤋
You can terminate any lease early. However there are severe penalties for doing this. Often the penalties are so severe that you end up paying in penalty the equivalence of the unpaid lease.
You have NO equity in the car because you do not own it, you leased it for a previously agreed upon purchase price and an agreed upon car value at lease end. This difference in money(purchase price - lease end car value) was then financed at some agreed to rate for the lease duration. Of couse, the lease holder owns the car and the lease holder can decide at lease end if the car is worse than he thought it should have been and charge you a penalty for over use, over wear, etc. Leases, for these reasons benefit the lease holder and the dealer. They really are not good for you.
Check and see what the early exit penalties are for your lease by contacting the lease holder.
All dealers will tell you that they can get around this. It need not be a dealer that sells the same brand as is the leased vehicle. However, you are adding costs of a new car + lease penalties onto the purchase of the new car. There is no free lunch here - or anywhere. You may find that the payments are a lot worse because of the added burden of the lease early exit fees.
Under no circumstance would I encourage you to lease your next vehicle. Perhaps a solid used vehicle would be prudent in your case.
Remember cars are a very bad investment and a hole in the financial pocket. Do all you can to minimize the financial drain.
2007-07-03 12:28:27 · answer #2 · answered by GTB 7 · 1⤊ 0⤋
Trade Lease In Early
2016-12-16 06:42:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can try but odds are you will owe much more than the car is worth. Leases arent meant to be broken. Call BMW and find out what your pay-off is, compare that to trade in value and thats the difference you will have to finance or pay cash to satisfy. In my experience as a car salesman it is very difficult to do unless you are willing to shell out some big money or roll the balance into your next car payment which really would defeat the purpose of buying a less expensive car wouldnt it?
2007-07-03 12:26:11 · answer #4 · answered by kmankman4321 4 · 0⤊ 0⤋
You do not own the vehicle, you can't trade something you do not own. You can however see if the dealership is willing to buy out the lease and own the vehicle, but you will just rollover the difference in the price of the new one.
2007-07-03 12:20:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Welcome to the credit trap. Sell the Beamer for what you owe on the lease or more if you can get it and buy a vehicle that you can pay cash for..
Once you go upside down on a car note they've got their claws in you.
2007-07-03 12:35:17 · answer #6 · answered by noobienoob2000 4 · 0⤊ 0⤋