Hey guys first post here hope I can get some valuable input. Looking to get out of my lease 16 months early. I have a 45K mileage allowance of which I’ve already ate up 34k. So safe to say I’ll be hitting the 45K mark by the end of the year if I stay with the vehicle. Just wondering what my best option would be without taking too big of a $$ hit.
2020 740Xi
36 month lease with 16 months remaining
$1475 monthly payment
Payoff amount is $74K
KBB average offer for vehicle is between $50k-$55K
Give an incentive of $12400, which would bring the effective payment to a more palatable $700/mo. Then prepare to gift another $20k-$50k in order to buy a G63.
Yes I was thinking of covering half of remaining lease payments or payoff cost which is essentially the same at this moment considering what the average offer is at the moment for the vehicle and hope dealer would cover the other half and roll over. Not sure if that’s even possible.
And yea g63 that’s another conversation lol I’d have to find one first
It’s about security for them imo, probably a way to boost new car sales(maybe not now but in general) as well considering its bmw’s captive and not a 3rd party.
I have done about 3 transfers so far and haven’t had anyone declined, an x3 m40, a 530i and a 540. Nothing fancy by any means and these were also a few years ago so maybe things have changed.
That would be true of any decently run bank. The credit and DTI needs to be strong enough to support not only the $1,475 monthly payment but also the tax on top of it depending on the state.
The fact that some cash is being handed to the second lessee is immaterial to the credit app and DTI.
Also keep in mind someone is still liable for the pre-incentive tax liability. So $1500 x 16 is about 24k, taxes on that is due on transfer payable by assumee.
In this situation, wouldn’t it be cheaper to just ride out the lease until the end, and pay the mileage overage? Seems like heavily subsidizing the lease transfer would cost more than just keeping it until the end and paying the penalty for miles.