Lease return, new lease application or lease takeover, first time buyer

Ask the Hackrs
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This is going to be a few questions so please bear with me I’m new to all of these. Currently ending a lease BMW X5 end of the month. I have been passed on by BMW Financial to the dealership since they said I owe one month of lease, $860 including late charge. I explained to them the reason I didn’t pay because we were told that the security deposit of $850 can be applied to 36 month as long as it under miles (less than 25k miles now, 5k under miles). BMWF said call BMW BH, I called BMW BH said it not up to them because they didn’t issue the 30 days late, loan, etc then he said that since its not my name, technically I’m liable for it, just ignore and return the car. As for return since I live too far now from BMW BH, I asked BMWF if I can return the car to the nearest dealership, response it up to me where I want to return but can it might incur additional fees if I turn it late. Been contact the last two weeks, no one wants to schedule me, the nearest dealership said they prioritize cars that was bought from them, BMW BH said he can have someone arrange that for me within the day if I get a new lease but if not, someone will call me within the next few days. I called again BMWF and told them what I was told, this time the rep said she cannot disclose any information because its not in my name and cannot help me with anything except if I want to make payment. What do I do with the car now? I just want to return this or buy it out? I’m not sure if I’ll get approved, income is $7.5k/month, no car history, auto fico from other dealership said its 700. Do I need to put 15k down to be approved? Old lease payments were $830 (750+wear&tear+tax) I never missed a payment except for that last month because that was told to us by the sales guy. For clarification, the X5 is under my husband’s name. He passed away months ago. He was a first time leasing but bought many car before.

Another dilemma, when I asked BMWF if I can buy it and transfer they said I can’t it better for me to lease a new one. BMW BH said I can, just bring death certificate and marriage contract.

As far as leasing a new vehicle, I looked at the

ES350 f sport, was quoted, $530 including tax, 36 months, 12k miles. 5k dp

Velar, $610 inc tax, 12k miles, 9k dp. This dealership ran my credit too only to find out the unit will most likely come in three weeks.

Etron, they didn’t give me the monthly but asking for 15k dp - I was lured by this sales guy saying there is 20k incentive if I get that. He told me he can get a soft pull just to see if what amount I can qualify and he ran my credit twice. I was pissed an walk out. He is calling, texting, voicemail the last two days. He even pushing me to buy cpo a6.

I saw swaplease, guy said its available, $540/month, 27 months, 950miles/month. Is it easier for someone like me to assume a lease than a new one. I though this way I can save the dp a little bit.

I don’t fit in smaller sedan,I’m really tall. Also, the only reason I willing to put 15k dp to BMW lease buyout just to get approved and because that car was a gift by my husband when I gave birth. I was told not to put sentimental value to a car but here I am. I thought depreciation will slow down 4th and 5th year. Its in very good condition.

To be honest, I don’t know if I’ll get approved for a new lease. Fico went 12 point already now at 728, fico auto was told 700, income 7.5k, no rent, oldest account 5 years, account age 2 years, 9 months, close account are 7 due to husband card as supplementary. I have cards, available credit 150k, utilization 4%. Maybe thin file because I immigrated 5 years ago.

What do I need to do? Do I pay the $850, try to extend the lease to 3 months until I figure this out? I know there will be a gap from getting a new one but I’m willing to rent / uber. I compute if I do uber it will cost me $400 just by going out 2x week so that is not an option long term. I have a son with disability and he goes to therapy 2x week.

I know some of you will tell me just get a rav 4? It did cross my mind. To be honest I wouldn’t be happy but I’m open. I just like nice cars eversince.And somehow another reminder, how out life has shifted the last few months. I hope people here will understand.

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Sorry about your husband.

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Your current vehicle lease is with BMWFS. It doesn’t matter what a dealer tells (or told) you about the final payment, they aren’t a party to the lease agreement. Plus:

If your name isn’t on the lease agreement, the late payment won’t report on your personal credit report.

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For future reference, this can be used by some less than ethical folks for trying to push you into the sale, as you somewhat observed. I’m sure @jeisensc or @trism may have some more specifics from their experience, but in my opinion you shouldn’t ever give out your information (SSN, etc.) to run any form of credit check until you’re actually drawing up your vehicle’s deal. Maybe I’m paranoid, but its served me well.

Using apps like Experian and certain credit cards’ free portals can get you your FICO score (also check out The Credit Thread later), and with that information along with other parameters that you can find online on other forums like Edmunds (money factor/interest rate and residual value of the vehicle), you should be able to come up with rough numbers for any car on your own! (And this community is here to help too!)

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You’re dead-on, and that’s my policy as well, although it’s not because I care about the inquiry itself, it’s the principle.

On our last vehicle I got an alert about a new inquiry while we were waiting for our turn to sign papers in the finance office (and I’d made the deal days ahead of time over the phone and flew in to pick up the car).

I would make an allowance for the dealer if the consumer expressed a legitimate concern over being approved, but in that case I would also fault the consumer for not doing enough research before walking in the door.

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Who told you this, a salesperson? Sounds like BS.

The whole point of a deposit is that you get it back after fulfilling all your obligations.

So pay what you owe BMWFS. Maybe they’ll take off the late fee as a courtesy if you ask nicely, maybe they won’t. Either way, get your account current, finish the lease, return the car, and then you’ll get your SD back.

Don’t buy out a leased BMW. Generally they are never worth their payoff. Just forget this car and move on. There are some things worth holding on to for sentimental reasons: leased BMWs are not one of them.

Pick something else from the Marketplace section of this forum as your next car. If you don’t enjoy chasing a deal (or paying a broker) every 3 years, buy a reliable new car that you can drive easily for 6-10+ years.

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Yes, it only in my husband’s name. The only reason I was trying to explain to them is what was told during leasing and to return it properly. I want to make sure that I’m not liable for anything later on.

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Yes, the sales who signed us the deal. It was our first time leasing, we casually asked what is the security deposit for and he said consider it advance lease payment that you can use for the last month given your under miles. We don’t need to worry about wear and tear because we have protection. When I reached out to dealership, they said BMWF can make adjustments or just disregard it since my name is not on the lease. How sure I am they won’t go after me later on? I have more than enough problems right now.

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Definitely, lesson learned there. I am not considering hiring a broker. I never thought buying a car as first time buyer could be this stressful.

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There is no reason to contact the dealership. Your contract is with BMWFS and they are the only ones you need to be in touch with.

Fulfill your contract, then there’s no possibility of anyone coming after you. If your lease was for 36 months, make sure you’ve made 36 payments.

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I paid this afternoon. The only reason I contacted the dealer because BMWFS told me to call them and ask for adjustments. I just want to return the car and have no problem with it later on. The only one that shows now is I have a balance of $74 late fee that appeared after made payment and $350 disposition. Can I just bring this to dealership and leave. Three dealership I contacted still has not given me a schedule. Last day of lease is tomorrow.

Thank you for your advice. I appreciate it.

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Sorry about your husband.

You can also talk to BMW FS and politely ask then to waive the late fee, as you were told that the security deposit could pay the last month’s payment and it was not your fault.

I am not sure whether you can just leave the car at the dealership because there is a lease end inspection form that the dealer need to fill. If they refuse to fill it claiming that they are busy, you can call BMW FS to discuss the situation how to return the car.

Good luck.

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Sorry to hear about your husband and current situation.

If you’re new to leasing, etc, you would strongly be encouraged to hire a broker to do you deals going forward. It will save you time, $, and if you don’t like the deal, you don’t move forward so it doesn’t really cost you anything.

During stressful times, it’s usually easier to try and simplify things.

Good luck- and I would also second- never give out any personal identifying info like SS and information for them to run your credit when just shopping- only after the negotiations have finished. Each inquiry lessens your credit score.

I highly recommend using Credit Karma app to monitor your credit. It’s free.