This could be uncommon but comment appreciated
Interested in an investment property and my loan agent recommend to get rid of my recent lease for more loan amount.
To get rid of lease balance, from my understanding I can either payoff the lease or trade in the car but both options not fit my needs well since I need it for a while but do not plan to own for long term. Thus, I am thinking about paying the remaining balance in one payment without buying the car off.
This lease has $100k payoff and show $45k on credit report as the total remaining lease payment. The BMWFS representative said they can not covert a month to month lease to one payment after initiated but I can just pay monthly x remaining months in one payment.
I am thinking about this option to pay everything now since this would get $400k additional property loan at current low rate.
My loss from this lease would be
- About $1400 (based on 87mf/2.09% rate) interest already calculated at beginning but I am not taking benefit since paying in advance
- If the car totaled, I could potentially get nothing from my advanced payment or have long negotiation with BMWFS
Any other concern I am unaware?