Pre-lease strategies for getting out of lease early?

Ask the Hackrs Buy/Finance
1

I just had a thought and wanted to hear some opinions. (This is my first post on LH.)

I am generally not a fan of 36 month leases, since I like to switch cars every 12-24 months.
The thing is, 36 months leases seem to offer the best terms in general.

So how do I make sure I can get out of a lease, assuming a transfer isn’t an option?

Right now, the BMW iX is being offered with a very low money factor (.00101 or 2.5%), which goes even lower when doing a one-pay lease (0.00055 or 1.32% APR).

By going for the deal structure that gives you the lowest MF, doesn’t that ensure that the monthly payments mainly go toward building equity in the car and thus, providing the best chances of not being underwater if I have to buy the lease out to sell it?

Would love to hear other strategies that help set me up for getting out of a lease early, assuming buying isn’t an option.

2

I just get 24 month leases. The cost difference is trivial.

3

Actually the best bet is to just buy the thing and trade in on your time table

4

I wouldn’t be able to get the EV Lease Credit, so buying isn’t an option.

5

if you are getting the 7500 lease credit then shouldnt 24 be better? 7500/24>>>7500/36

6

The first thing you do is avoid brands that don’t allow sales to 3rd party dealers.

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7

Generally speaking you should be targeting cars that lease well because they have large discounts and lease cash, NOT those that lease well due to residual value subvention. The RV subvention typically ends up killing the buyout as you’re essentially paying it all back when you buyout.

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8

You are taking market risk either way. Either the payment is above market (for a transfer) or you’re underwater while trying to sell it.

The difference is, 24m into a 36m lease all you need is $1,200-2,400 as an incentive to bring down the effective payment by $100-200 per month.

While an expensive German car could easily be tens of thousands of dollars underwater if you are trying to sell it.

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9

Never use US Bank or Ally Bank to finance the Lease…

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