I was hoping to get some opinions on a E53 lease transfer I’m considering taking over. I’ve been on the forums a little bit before but I’m still fairly new to the leasehackr world so let me know if I missed out on mentioning something. Also, I’m in Canada and I don’t see many Canadian posts on here but I hope most of this translates. (Everything in KM and CAD$)
So the lease that the owner has on the 19’ E53 Sedan is as follows:
Msrp $104650 + $3845(options) = $108,495 (total list)
Selling price $87,861.26 ( ~19% after $20,671.2 adjustments)
Interest Rate/APR is 0.49%
Term 45 Months /18K KM (Anticipated KM at start 9900 and at enf at 77400)
Down $0
Residual 43% ($42,524.50)
Payment $1033.92 + 5% & 7% tax = $1189.01
Security Deposit $5000
The owner drove the car for 4 months so 41 months left on the lease and the mileage is now around 18k KM. Hes looking for $10k paid to him and he’ll cover all transfer fees and Sevice A (which is around $1K). I’ll get back his $5k deposit so I’ll essentially pay him $5k for the transfer. Appreciate any insights y’all have.
Heres the leasehackr calculations I think I did them right
The way I saw it was that I’d be paying for the convenience of him having got the deal. Ive managed to negotiate him down to effective 3500. With coverage of lease transfer, the difference pretty much ends up being as if though I’d leased it at 2.5% apr instead of his 0.5%. Which is what I would’ve got anyways since I’m not an employee as he was. Do you think the lease itself and my deal end up being worth it somewhat then? His car is also a really nice spec that isn’t easily found; as a demo especially.
It sounds like you want the car. Which is fine if you found something you like. But your seller obviously needs to get rid of it, and probably doesn’t have many options other than you, which is why he is willing to negotiate. The purpose of this forum as I see it, is to educate each other; but most importantly achieve low monthly numbers on cars we want, with little if anything out of pocket. All that said, if I were you, I would say “I’ve thought about it further and I will pay the deposit and assume responsibility of the remaining payments, but I’m not comfortable paying a transfer fee.” Then give them time and see what they do. Remember, you are doing THEM A FAVOR by assuming their payments. They should be incentivizing you. Don’t get emotionally caught up in the car.
That’s about 10 American broker’s fees for that deal, and while the mileage is good it’s a LONG lease. Can another broker help you get a similar deal for less?
I 100% agree with everything @BuddyRevell said and suggested. You hold all the cards here. Find something you dislike (or isnt exactly what you would get) on this car and introduce that sticking point.
Does this 45 months lease include maintenance? Or are you on the hook for 4-5 services and their corresponding bills (paid entirely in a water jug filled with Loonies)?
Thanks for the advice. Realized after your post about how my emtoions were getting in the way of my senses so I did exactly what you’d said. Although the car is a nice spec, didn’t justify paying anything out of pocket for such a long lease and without any service packages.
Being a little more thorough, there were a few things that I actually came up with to renegotiate the deal one of which was the services. So I offered him back with what @BuddyRevell was saying and won’t be giving him anything on top of the deposit (and now I get to keep my jug of loonies tucked away safely in my igloo instead)
As an American who grew up half way between Montreal and NYC, has spent a good amount of time in Canada, can recite all the Provinces and Territories, and probably has a few Starbucks worth of loonies laying around the house: I approve!
Letting the seller initiate our next interaction so I’m still waiting on him to reply. In the meantime I found a few other cars to look into. One of which is a 18’ E63 that a dealer has been sitting on for what seems like possibly around a year.
Good job