Planning ahead (prior to singing a deal) for getting out of a lease early, any tips?

Hey all,

As the title suggests, I’m trying to do my due diligence while scouting for deals in the Seattle/Portland area.

I thought it would be wise to learn from the hackers on what are the DOs and DON’Ts if I plan to get out of my lease early.

  • From reading a little bit around I noted that I shouldn’t lease with Ally/US Bank since they don’t sell to Carvana/Vroom, etc. Any other lenders to avoid? I saw that it should be considered safe to lease with MBFS, BMWFS, is that correct?

  • How much more should I expect to pay if I sell my leased car to Carvana (or alike) on a loaner with an average deal? will it be $1k-2k or more like $3k-4k? I saw some people around even making a profit but what’s the average case? (I’m in the market for a loaner C300/M340i/CLA/A Class/A35/CLA35 so roughly ~$40k to $50k MSRP), would it be roughly the same cost to end the lease 12/18/24 months into the lease? obviously, I don’t expect an exact amount, would appreciate just an average ballpark figure from your experience :slight_smile:

  • In general, are there any differences between lease swap or selling to a dealer? anything that I can plan ahead for?

My main “concern” is that I don’t want to be tied to 36 months if I don’t enjoy the car and I want to know what’s the “worst” case scenario for getting out of a lease early and how much it would cost for “standard” BMW/Mercedes.

Thanks in advance!

There’s no way to even remotely come up with a single generalized answer, even ballpark, to your questions. All of the above depends heavily on the specific make, model, MSRP, deal you got, lease terms, market conditions at the time, etc. etc. etc.

The best thing you can do is focus on getting the best deal you can on the car now. Get a great deal now, and there is typically always someone down the line that will be willing to take over the lease, assuming that’s an option.

And IMO you should never bank on getting out of a lease early. If conditions align such that you’re tired of the car and can transfer out, or sell it to Carvana etc. to break even or for profit, then great, by all means go for it. However this shouldn’t be “Plan A”. Just ask the folks trying to transfer Mercedes leases.

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Basically this and also keep in mind that these Vroom / Carvana sales are mostly due to the quarantine and a shortage on used vehicles. There’s only a few cars that are ever typically sold for more than their buyout outside of the current circumstances.

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Explore and compare 24 month options then? In some instances the programs work out in favor of a 24 month term and you are locked in for less time. That’s probably a better strategy than hoping for equity in anything you end up leasing.

My two cents? Avoid brands that can’t be transferred, Volvo, Audi (you can but you maintain responsibility), etc. BMW residuals are often inflated making a buy out flip difficult but not impossible.

Don’t expect to make a profit, who knows what it’ll be like in 1-3 years time. So don’t count on jack. We really can’t say what will happen.

For cost, don’t associate msrp with cost. A guy paid 900/month for an accord and like 700/month for a pilot. Then we’ve had people pay like 90 bucks for a Tacoma.

You probably need to read leasing 101, top right corner, I highly recommend doing so. I’d love to explain anything you need to you in detail if you have an issue, my contact info is on my profile.

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I would not expect to flip a Mercedes or BMW lease. The buyouts are inflated because the RVs are inflated. This is how they can make the leases so incentivizing.

Find a car that you enjoy. Much easier to spend a couple more dollars a month to get the right car than going through the process of getting rid of the lease on the hope that you will break even. If you don’t want to hold the car for 36 months, find one that has good 24 month programs. If you have the ability to charge a car, the e-tron has been doing really well lately on 2 year leases.

M340i is a great car, but some of these are just FWD AMG specs. I would do some car shopping to see what car is the best for you before going through the process of sending quotes.

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I think if you have to question about how to get out of a lease early, you shouldn’t be leasing. Simple as that.

Have you checked out Swap A Lease, Leasetrader, or the lease transfers on this page?

You could take over a lease for a shorter term since timeframe seems to be high on your list of concerns.

Just get a bmw fart car unicorn, they are easy to transfer. Avoid tires, wear & tear and the dispo

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Mercedes allegedly have permanently suspended lease transfers. Food for thought.

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Out of curiosity, does lease transfer also mean selling to a dealer like Carvana? that would be very interesting development. I start to think that if I plan ahead the safest bet would be to go with BMW now since they’ve been the most welcoming in the past to transferring leases (I don’t expect any one to guarantee it, just getting some sense of the industry’s practices).

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Thanks so much for the detailed answer.

I feel like I might’ve put too much info in my questions without giving a concrete example so I’ll put one in this message.

About ~3 weeks ago there was a really good deal (relative to the area) on a C300 in MB Seattle - it was $360/mo effective cost including tax and fees, with 15k miles (per their Roadster’s expresslane website). Since this is the old interior, and it wasn’t an “exciting” AMG/M-series car I didn’t eventually go for it. I didn’t want the old interior/less exciting car for 36 months. However, there are no good loaner deals on anything in my area that’s AMG/M-series and I’m still waiting for anything to pop out. My current car is a Ford Fusion that I got last year after starting a new job, I got it in a nice deal and was planning to replace it after some time. It doesn’t have leather seats or anything that comes with an entry-level MB/BMW and I pay for it $415/mo for 48 months. Now I did the math (:smiley:) and paying $60 less for a C300 is close to a no-brainer (for me) if I plan on selling the Fusion in 3 years (I know it’s not really going to be cheaper, but my point is that it’s also not too far from the Fusion i.e. not double, etc.), however, it didn’t make sense for 36 months. After browsing the forum a little bit I noticed that people just sell their cars easily to Carvana/Vroom/Carmax and that sounded like a good option for a temporary lease until I find a good deal on a car that I’d really enjoy.

I would emphasize that I don’t expect to earn anything when selling the car, just to get an understanding of how much it costs in an average case. I’m fine with paying $1k-2k, but if it’s more like $3-4k than I would think twice before entering into a deal.

If it’s worth anything, I’ve found deals in the area for around $410/mo + tax, with 10k miles (I might pay for extra miles but that can be left out for comparison) on CLA250, C300 & 330i. Since these aren’t AMG/M-series I don’t think I’d keep them for 36 months if I see a great deal on a more sporty car.

That basically sums up my stance on why I was thinking to find a great deal now and wait with it until I find something better that fits my requirements.

Hope it makes sense and that it’s a valid reason to try and get out of lease early if there’s a more attractive deal down the road :slight_smile:

You think about shipping, @AutoCompanion has some sick deals on c43s in the Delaware Maryland Virginia region.

You were smart to pass on the C300. I hate mine and will be glad when I drop it off in a couple of months. Wish I had gone with the BMW instead but I went with the better deal at the time. Follow the advice above - pay a few extra $$$ and get what you will enjoy driving.

Your best bet would be to get a 330xi in the sub 400 range and swap it out when you want. Don’t expect an m340i or AMG in the PNW for that price. You might wanna branch out to some Oregon dealerships to get what you want.

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First rule of thumb…don’t go into a lease expecting not to go full term. If you can get out of it for no/minimal cost, that’s just a bonus. It could cost you thousands to end it early due to inflated Residuals, especially MB who doesn’t allow transfers anymore. Could that change again? Sure, but I wouldn’t roll the dice either. BMW may be a better avenue to travel down, but again, there are no guarantees their policy won’t change either.

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In general, I agree with paying more for something I’d enjoy. However, since there are no AMG/M-series loaners in my area, I am not sure I’m willing to pay 40%-50% more on a new M series. I am also somewhat reluctant to ship a loaner. That’s why I was thinking about getting a “temporary” lease.

Could you elaborate on why you hate your C300? from my limited impression, I wouldn’t consider it to be a terrible car (but that could also be good marketing :slight_smile:)