Quote:
Originally Posted by TurboMark
I work for BMW Financial Services and one of the most often asked questions I get is "How can I get out of my lease?" This is a fairly straight forward question however the answers can vary and there are a number of options available. I figured I would put a sort of a guide out there to give everyone the basic options.
First things first, when you sign a lease contract you are expected to fulfill the contract in one of two ways, either by making all the payments on the lease or by buying the vehicle from us for the payoff price. Here are the four ways that you can do this and get out early.
1. Pay the remaining payments: This option may make sense for some of us, while it might be completely useless for others. It may make sense when you are trying to get out of your 335I lease to get into a new M3 if you have maybe 2-3 payments left, however if you have 15 payments remaining you would still need to make all 15 remaining payments in full prior to turning in the car.
2. Selling the vehicle: This is as easy as it sounds, you may buy, sell, or trade the vehicle at any point in the lease. As long as we get the payoff we request for the vehicle we will send the title to you and you are free to do with the car what you will. You may sell the vehicle to a 3rd party private person, 3rd party dealership, or a BMW dealership. You may also trade the car into a dealership. If you are selling to a private party though, note we will not send the title on the vehicle until the payoff is in our hands. Any arrangements made for transfer of money between you and the buyer is outside of our control so be careful with this. A third party may not refinance a current lease with BMW financial, however they may often be able to finance through their own bank, credit union, etc.
3. Lease assumption: A BMW lease may be taken over by a third party at any time in the lease up til the final six months of your lease. There is a $450 fee and that person would have to submit a credit application with us and be approved. The process will take approximately three weeks. Once the process is completed though you will be completely removed from the account and will have no further liability with us.
4. Sale of Liability: This is an often undiscussed option because for many people it seems like it may be a riskier proposal. The basis is that it works much the same as doing a voluntary repossession, however no harm will be done to your credit. Basically once the process is initiated through us you will be responsible for paying the $350 disposition fee and dropping the car off at your dealership. The dealer will bring the car to auction and sell it at auction, whatever the difference is between the prices of the vehicle at auction and your current payoff price is what you would owe back to us. The nice thing about this is no matter how little the car is sold for at auction the maximum that you would owe back to us is the amount of the remaining payments on the vehicle, and the possibility exists that you may get away with paying less if nothing at all.
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More on #4 please.
Can a lease be extended? I have an x3 lease up in Nov, and there is nothing out that I would like to replace it with. So i don't know what to do. Thanks!