Pros and Cons of using Swap Lease

Incentives took a shit recently and you won’t touch a March/April deal on an X2 right now no matter where you are.

On the other thing, FL dealers tend to be notorious for poor discounts, marked up MF and excessive doc fees to boot.

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The lease assumee is flying up next Sunday to take possession. BMW has approved stage 3 complete.

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I agree! BMW is tops on transfers. Ive never had one that wasnt easy with them. And, although they do not guarantee this (and quote a three or four week timeline), I have had some completed start in finish in <10 days.

I also believe the swaps are a pretty decent profit center for BMW.

Given the cost structure/punishing overhead costs of running a large financial services company, I would be shocked if they break even on lease transfers.

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We of course will never know the answer to this question, but it’s fun to speculate :slight_smile:

If they were losing money, I would imagine they would simply have a no transfer policy. That said, from a financial accounting/tax perspective we could probably almost guarantee on paper they are showing a loss😁

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Have you run a department for a publicly-traded global company?

The costs are nauseating.

Two big reasons to provide the service:

  • Customer service / customer satisfaction / brand loyalty;

  • Loss mitigation (Not allowing transfers would result in a higher repossession rate. Repos are VERY expensive).

Sure…Haven’t we all here, LOL. :grin:

Can’t speak for anyone else here, but I’ve run several.

Doubly so when you consistently inflate the RV’s…

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Well to give you an update on my Swap-A-Lease experience I already requested my membership fee back. I was in talks with a gentleman in Ohio for his F-150, agreed to all his terms and was just waiting for him to send the paperwork over. Didn’t hear from him in 2 days so I followed up and he said he already got rid of it to someone local…lesson learned there.

Also I bet a lot of people that transfer out go on to get another bmw. Sales volume seems to be all that matters for bmw.

I’ve used SAL twice now. Both were GMF - it wasn’t horrible (about 3 weeks total), but GM does not tend to contact either party if there is an issue, they wait until you call them type of approach. Not the most efficient (no online - prefer snail mail over email/fax info), but it gets the job done. The prices (as a lister on SAL) are a bit much IMO for what you get, it would be nice if they buyer could submit all their info to SAL and SAL handles everything, but I also understand why they dont. If you push hard enough you can usually get 40-50% off your listing fees on SAL.

This has nothing to do with swapalease tho

I’m aware, I was just giving out timelines as most of the people who had contacted me thought the process was the same as if you went to the dealer

My reply was to @mpyron

I’d only consider SAL to get out of my deals if they weren’t already LH friendly. :slight_smile:

I suppose though I could make it worth my while by asking for a bite off the sandwich.

Let’s say you have a lease that is not very attractive for swapping here. At swap a lease, it might more readily be swapped because consumers there may not be so lease savvy. If that is the case, then even a hackworthy lease that might get swapped here, might get swapped there but with more incentive/profit? So maybe SAL is just a better deal financially for the seller, unicorn or not…

I believe it. A swap here that may just get your MSD’s back in your pocket could net $1,000+ return on SAL.

there’s definitely a few hackrs doing that, saw some nice monthly payments on m3’s and m4s on swapalease that have like 23 months and practically no miles asking for 3-4k down payment lol.