I’m grateful to everyone for all of the advice given and knowledge gained through this forum. After a lot of back and forth and a few misunderstandings, I was able to strike what I feel like is a very solid deal (came out to 18.3% pre-incentive). I know a lot of people here are against one pay, but personally I find it very satisfying to not have a monthly payment.
There is absolutely nothing wrong with a one pay. I have done them before as well. I am also one who enjoys the subjective benefits of not having to write a check each month.
Also, I believe with the current MSD arrangement (after BMWs recent changes), no longer does doing 7 MSD result in a lower money factor than simply doing a one pay. I believe the one pay is now slightly better.
Yep, I love not having to write that monthly check. I also try to do the same for my insurance policy and pay for 6 months at a time. On top of not having monthly payments, it also lowers my premium by over 10%. Might as well do that if I have the cash lying around.
You can set up autopay on BMWFS’s website, so I don’t really understand the ‘writing checks’ thing. Nothing wrong with One Pay, though. Strong deal! Welcome to the G20 family
Congrats on the car! Very rare to see a one-pay deal on here, so thanks for sharing that. I’m also curious - what happens if you total the car the next day after you sign? Is your entire one-pay out the door essentially if the payoff amount is way more than the market value (which I’m assuming 9/10 times it will be)? Or is there some type of GAP-equivalent coverage for a one-pay lease to protect lessees?
Disclaimer: the below contains assumptions to the best of my knowledge but may need correcting.
I think the key is probably in the way that the agreement is written up. If you put money down as cap cost reduction (CCR), that’s where you get in hot water if your vehicle is totaled. CCR is not considered in the equation when calculating the difference between vehicle value and payoff amount (covered by GAP).
In a one-pay scenario, I don’t think the agreement is structured where your payment is treated as CCR. I imagine the one-pay dollars are placed in something like an escrow account for regular withdrawal, since the bank doesn’t receive the full amount until lease term. You’re still charged some amount of interest (probably a rent charge, too) so it’s not like the bank receives the full amount upfront as a quick cash injection. The dealer’s finance folks gotta make their $$ somehow.
So in the event your vehicle is toast, I imagine the outcome would be the same as if you didn’t one-pay, unless your agreement shows some portion of that toward CCR (which would make no sense). You’d get your remaining payments back and the agreement would terminate, just like it would if you were paying monthly.
I’ve never executed a one-pay, so please correct me if the above assumptions are wrong.
With a 1 pay, you will see a credit in your bmwfs account from day 1.
Every month, bmw will pull the $400~ from that and it will zero out at 36 months.
If the car is totalled or stolen, the lease terminates, and the credit balance at that time is returned to the customer.
The only downside is the same as MSDs when you want to try to transfer the lease. The credit in the account follows the car.
I the same way, but it’s really so easy setting up auto pay thru BMWFS or your own bank. I used Chase and make my payments thru my phone. I have everything at my fingertips
If you have the BMW connected app, you’ll also get alerts of payments there. Pops up right on your phone.
