She started getting prickly with me when I asked her if she had the lease paperwork. She said she got the ($30K) RAV4 for $300/mo. with no money down, so “they have to get their money from somewhere”. Started trying to explain how leasing works to ME. Something about how they “appraise” the car when you turn it in, and if it doesn’t appraise for what you owe, you have to pay the difference. I started thinking I was nuts at that point. Anyway, I just told her she better read her contract because I’ve never seen a lease that works that way.
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Thank you for being clear and direct
That’s exactly what that sales person said to me! They “appraise’ the car and it showed up with “negative equity”.
We need to be very clear if we are discussing an early turn in or at the end of the lease here.
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Sorry if I confused things. OP was talking about ending the lease early. In my cousin’s case, she was talking about end of lease. Just was weird to me that the same type of terminology was used.
The auction discussion is a valid statement in the case of an early termination as an alternative to paying the entire remaining lease balance. So they’re referencing the contract, just not in the correct context.
Wow a Toyota with Negative Equity…either something was bad about the lease or the dealer was trying to rob you.
At the end of the lease. The salesperson said it had negative equity due to “leases not being as good as before”. The car wasn’t worth as much as the lease residual said it would be. I don’t see how that’s my fault.
It isnt if you carry the lease to term.
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How can your car have been appraised at the end of its lease if it’s
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The most you can owe at the end of the lease is the remaining lease payments, the disposition fee and any charges for excess mileage, wear and tear. It sounds like this dealer is trying to get you to trade in your vehicle prior to lease end. In a trade in, you would be charged the difference between the appraised value of your vehicle and the current balance on your lease (remaining payments plus residual value). This is where the negative equity is coming into play. The cost for the dealer to buy the car from BMWFS is greater than the appraised value, hence the negative equity.
As I said before, you could make the 5 remaining payments and turn the car in early. This is known as an early lease termination. Contact BMWFS and ask how much you would owe if you went this route.
Or just finish the lease. There’s really no compelling reason to pay any of the early termination expenses, whether it’s 5 remaining payments or the $7k NE.
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There really isn’t much of a question here. If you keep the vehicle until the end of the lease, there is no negative equity. You turn the car back in to BMW and throw them the keys and pay disposition fee (assuming you are not over miles, excess wear, etc). If you get a new vehicle now, the vehicle is a trade in, and market value prevails.
Now, there may be some incorrect terminology being used by the salesperson and owner that is confusing the situation.
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Sorry for the stupid question but what is “lease support”?
Giving Rebates/Allowing Leases if you lease their branded car. So a 2021 has no lease support so don’t bother leasing one as it won’t be with the Branded bank, it will be with Ally or US Bank or some other financial institution and most likely more than leasing a 2024 which has lease support.
Please explain “lease support.” I have. 2021 330ixdrive due back in July. I will be leading another BMW when this lease is up. Thank you.
If you are leasing a 2024, you have ‘lease support’
If you want to lease a 2023, they might not lease it to you if the ‘lease support’ stops, and you forced to buy a 2023.
Right now I still see 2023 BMWs on the list but that can change monthly. For Example INFINITI just dumped Lease support for the 2023s QX80s, so no one can lease a 2023 - QX80 from IFS right now