lowering monthly payments

[Year1of1]

i reached out to BMWNA about lowering my monthly payments and they said ... "put more money down"

just curious if there is another way... i'm currently leasing the vehicle - will financing it help or is the banking situation so bad that it wont help?

i'm considering jumping out of the 1er into an older 3series for less per month

[lannypoffo]

im in the same situation. i reached out for options. BMW said i can pay the entire remainder of my lease (prob $24k) and just give the car back, buy it out for like $32k, or transfer the lease to someone who will take it.

there is no way to just get them to lower payments on the lease.

[NihonX]

Pentagon Federal Credit Union has a low Auto Loan APR.

I'm with Service Credit Union, however. Do direct deposit with them and you get a better APR.
If you are military, you even get better rates.

You might never know unless you try them out.

$29,000 @ 4.5%/70mo
I pay $480 a month.

[Chewyjr15]

jesus thats almost a 6 year loan!

[Cuz5150]

Hahah.....Need to get yourself a part time job on the side.......No other way out......

[former]

Yup, the only way out of a lease is to pay ALL the payments out. No other way.
And then you've paid a crapload of money and you don't have any car at all because a lease doesn't build any equity. You could of course pay all the lease payments plus the buyout and roll them together in a very long loan, but then you get used car rates which are usually higher than new car rates and aren't subsidized by auto manufacturers.

You are better off trying to find other places in your life to shave off dollars - brown bag it to work or school, avoid the Starbucks run, rent a movie rather than go out, etc. Or, as another poster suggested, pick up a part time job...

[lannypoffo]

i sent mail to a few local BMW dealers to see if there is anything they can do for me. I would even trade in for a much cheaper BMW for the meantime so i can save some money. Like a crappy 325i or something.... ughh...

[doodads]

Wow......there are about four postings in the Cars For Sale forum that are people looking for somebody to take over their lease.

Good Luck to you.

[lannypoffo]

what about the option which is not recommended. just paying 1000-2000 into your lease to get the payments lower. i know youre better off just keeping your money, but i could stomach it if the payments were a bit lower. anyone know how much each $1000 paid in lowers your payment?

[BlackjackMulligan]

Originally Posted by lannypoffo

what about the option which is not recommended. just paying 1000-2000 into your lease to get the payments lower. i know youre better off just keeping your money, but i could stomach it if the payments were a bit lower. anyone know how much each $1000 paid in lowers your payment?

Typically lowers it about $30 per $1000 down on a 3 year lease IIRC.

[Year1of1]

its not that i cant afford the payments, i can w/o any trouble.. just that i'm not using the car as much as i had planned and it seems like a waste of money...

for the 4-5 hrs i drive a week now, i'd rather have lower payments and an older car..

[NihonX]

Originally Posted by Chewyjr15

jesus thats almost a 6 year loan!

True, but I pay $220 extra a month. I don't plan on paying the minimum.
It's not going to take six years to payoff the vehicle.

Unless I buy something else, it's not like I will be selling this anytime soon.

[chazm]

Originally Posted by former

Yup, the only way out of a lease is to pay ALL the payments out. No other way.
And then you've paid a crapload of money and you don't have any car at all because a lease doesn't build any equity. You could of course pay all the lease payments plus the buyout and roll them together in a very long loan, but then you get used car rates which are usually higher than new car rates and aren't subsidized by auto manufacturers.

You are better off trying to find other places in your life to shave off dollars - brown bag it to work or school, avoid the Starbucks run, rent a movie rather than go out, etc. Or, as another poster suggested, pick up a part time job...

Or he can sell the car OR go to leasetrader.com and have someone else take it over.

[former]

Originally Posted by chazm

Or he can sell the car OR go to leasetrader.com and have someone else take it over.

Sure you can do that, but it still doesn't get you out of the lease. You are still ultimately responsible for the lease payments since you signed it and agreed to it. If that third party who assumes your lease payments flakes out on you, BMW financial (or whoever holds the lease) is still going to hold you responsible and it will impact your credit report, etc.

[lannypoffo]

Originally Posted by chazm

Or he can sell the car OR go to leasetrader.com and have someone else take it over.

be careful with leasetrader. most people sign up for the lowest package. you cant even talk to any interested buyers with that package. Then they automatically charge you and upgrade you to the next level up, gold. Then on top of that, they charge you about $150 for EVERY lease assumption you start, whether it has success or not. Nothing is refundable EVER. This is all on their FAQ written right on their website. So research carefully.

[Noize]

Originally Posted by former

Sure you can do that, but it still doesn't get you out of the lease. You are still ultimately responsible for the lease payments since you signed it and agreed to it. If that third party who assumes your lease payments flakes out on you, BMW financial (or whoever holds the lease) is still going to hold you responsible and it will impact your credit report, etc.

Not correct.

BMW has an assumption process for leases. If the new lessee takes over or "assumes" the car, there are documents that transfer the car through BMW Financial, and the original lessee is 100% free and clear.

The problem with swapping leases is that the people who originally leased the cars are greedy- They try to get their money down back. That money is gone, deal with it. Put it on swapalease.com and tell them 0 down and offer to pay the assumption (transfer) fee through BMW. I believe its $600 or $650.

I did this with my 335i and got out of it really easily. Leasing just wasn't for me. If you can't get anyone to do it with a 0 down, keep throwing money at it until you can get the person assuming the lease's payments so low they can't resist. $3k should do the trick everytime.

Its not that hard to get out of a lease if you use your brain, I promise.

[lannypoffo]

Originally Posted by former

Sure you can do that, but it still doesn't get you out of the lease. You are still ultimately responsible for the lease payments since you signed it and agreed to it. If that third party who assumes your lease payments flakes out on you, BMW financial (or whoever holds the lease) is still going to hold you responsible and it will impact your credit report, etc.

Where did you learn that information? I doubt the guy that gave me his lease is responsible in any way if I fall through. Hence the long drawn out credit checks and transfer process.

[lannypoffo]

Originally Posted by Noize

Not correct.

BMW has an assumption process for leases. If the new lessee takes over or "assumes" the car, there are documents that transfer the car through BMW Financial, and the original lessee is 100% free and clear.

The problem with swapping leases is that the people who originally leased the cars are greedy- They try to get their money down back. That money is gone, deal with it. Put it on swapalease.com and tell them 0 down and offer to pay the assumption (transfer) fee through BMW. I believe its $600 or $650.

I did this with my 335i and got out of it really easily. Leasing just wasn't for me. If you can't get anyone to do it with a 0 down, keep throwing money at it until you can get the person assuming the lease's payments so low they can't resist. $3k should do the trick everytime.

Its not that hard to get out of a lease if you use your brain, I promise.

EXACTLY. That is how it works. I hate idiots that ask for $2k-$3k in their pocket on top of you taking their lease. Thats why mine is selling for $100 cash down, and I pay the $500 lease assumption fee... $100 out of pocket and you have a BMW at $600/month. no bites either. market is DEAD.

[lannypoffo]

While we are on the topic, here is info on whether a $1000 bonus payment will lower your monthly payment. I was hoping it would, but it wont.

Making a payment in addition to your minimum monthly payment will not change your monthly payment amount due and will sit as a credit on your account. If you were to make an additional payment of $1,000.00 you would have the option to skip a month and have your entire $600.00 payment pulled from your credit balance, or to make a partial payment and the additional amount due would pull from your credit portion. Any additional portion that would be due to satisfy your minimum monthly obligation will pull from any credit balance on your account automatically until your credit portion is used. We hope you find this information helpful.

[Noize]

Originally Posted by lannypoffo

EXACTLY. That is how it works. I hate idiots that ask for $2k-$3k in their pocket on top of you taking their lease. Thats why mine is selling for $100 cash down, and I pay the $500 lease assumption fee... $100 out of pocket and you have a BMW at $600/month. no bites either. market is DEAD.

Hey, you're in better shape than I am. I have a 6 year loan and am flipped in it. If I traded, I'd have to throw 6k cash down at it to get out. You could throw 3k at it, get the new lessee into the lower $500s monthly, and get out of it easy. The only time this can backfire is if your miles are too high. Throw a little more to get it into the high 400s, and they will come out of the woodwork, I promise. That's be a heck of a deal on a car this nice.

Don't cave too much though, the economy should improve somewhat. It can't get too much worse (I hope). Good luck!

[Noize]

Originally Posted by lannypoffo

While we are on the topic, here is info on whether a $1000 bonus payment will lower your monthly payment. I was hoping it would, but it wont.

Making a payment in addition to your minimum monthly payment will not change your monthly payment amount due and will sit as a credit on your account. If you were to make an additional payment of $1,000.00 you would have the option to skip a month and have your entire $600.00 payment pulled from your credit balance, or to make a partial payment and the additional amount due would pull from your credit portion. Any additional portion that would be due to satisfy your minimum monthly obligation will pull from any credit balance on your account automatically until your credit portion is used. We hope you find this information helpful.

It won't for you, but it can be applied in the transfer process, because they recalculate for the new lessee.

Another thing you need to remember is that you pay tax as you go, so other states have lighter tax rates. Try selling to someone in Oregon. They have NO tax rates on cars, and their leases are retarded cheap.

[BlackjackMulligan]

Originally Posted by lannypoffo

While we are on the topic, here is info on whether a $1000 bonus payment will lower your monthly payment. I was hoping it would, but it wont.

Making a payment in addition to your minimum monthly payment will not change your monthly payment amount due and will sit as a credit on your account. If you were to make an additional payment of $1,000.00 you would have the option to skip a month and have your entire $600.00 payment pulled from your credit balance, or to make a partial payment and the additional amount due would pull from your credit portion. Any additional portion that would be due to satisfy your minimum monthly obligation will pull from any credit balance on your account automatically until your credit portion is used. We hope you find this information helpful.

Sorry maybe I wasn't clear in my response.....before the contract begins, for every $1K down your payment goes down about $30/mo. After the contract is in place, correct, it wouldn't change anything except making additional payments.