Lease Into Finance?

[tkbr0wn]

Yep, Im not sure how re-fianancing is going to result in a cheaper monthly payment.

[lamini]

it's simple: lower payment for a longer period of time.
It's a win-win situation for bmw, they are ahead the moment you pay for your drive off fees......in the event of total lost, you'll never see any of that money.

My strategy.....buy with zero down....finance for 7 years and buy gap insurance.

The can usually be sold for the balance half way down the loan.

No worries about mileage, scratches, tires nor any of the othe nonsense associated with leases.
cheers,
mau

[Buschy]

Originally Posted by lamini

it's simple: lower payment for a longer period of time.
It's a win-win situation for bmw, they are ahead the moment you pay for your drive off fees......in the event of total lost, you'll never see any of that money.

My strategy.....buy with zero down....finance for 7 years and buy gap insurance.

The can usually be sold for the balance half way down the loan.

No worries about mileage, scratches, tires nor any of the othe nonsense associated with leases.
cheers,
mau

he currently has a leaase payment which are usually considerably lower then financeing even at double the term.
chances are he wont have a cheaper "payment" but he will save moeny in the long run.

if he finaces for 72 or 84 months he might as well finish out the lease and then refinance the residual at the end, but chances are he will turn it in and get something different.
thats why I asked what the pay ment now is.

[1ForAllFor1]

I would need to finance for 84 months, without question. That's the tricky part (most banks won't allow it). Let me put it this way, my monthly lease payments are outrageous because of the negative equity, so stretching the same situation out over a longer period of time SHOULD, in theory, reduce my monthly hit. We'll see. I'm still looking for bank recommendations though...

[lannypoffo]

Originally Posted by 1ForAllFor1

I would need to finance for 84 months, without question. That's the tricky part (most banks won't allow it). Let me put it this way, my monthly lease payments are outrageous because of the negative equity, so stretching the same situation out over a longer period of time SHOULD, in theory, reduce my monthly hit. We'll see. I'm still looking for bank recommendations though...

whats the problem with mentioning your payment amount? not like people will dig deep into your financial folder with that piece of info. Don't say its more than $1000/month tho, or I might just flip out. I can barely afford my own monthly payment which is $600 including tax.

[Buschy]

what is your lease payment? even at 84 mths, your not likley to get a low enough rate to lower your payments from a lease, unless you got rapped.
not sure where you will find a refinance loan for 84 mths either. if you qualify USAA has them. find a credit union.
call capital one.
your looking at close to $1000 payment to finace I think. depending on what your payoff it. we could help more with more information, we wont care if you made a bad choice at least your trying to fix it.
my guess is you have a 36 mth lease and leased $50k, then your payments are probably 900+ so I still think you will be close I dont think you will get much less then that finacing.
let us know.

[1ForAllFor1]

Hey guys, relax! lol I'm not trying to keep any secrets, I came to YOU for help, remember?? ...Just trying not to be TOO rude and force my personal financial details down all of your throats! Everyone seems kind and willing to help though, so what the hey...

Buschy, you hit the nail on the head my friend: I'm at +900 on a 36 monther, and I've got a current payoff of exactly $50,000. I know it sounds pretty brutal, but I make good money, so I'm doing alright. I'd really just like to see if there is anyway that I can better my situation, and if not, then I'll survive. No bigee.

The trick is definitely going to be finding a bank/credit union to refinance me at 84 months... but I fail to understand why you guys don't necessarily think that my payments could very well be dropped significantly if I DID manage to do that.

My credit score has improved, I've already made two payments towards the principal, and we're talking about stretching out the costs over a looooooooooooong time. The only problem as I see it (aside from nailing down a bank, of course) is landing myself a decent interest rate.

All further help much appreciated! :headbang:

[Buschy]

I think your best chance will be a refinance loan at 72 months, you will only drop your payment a little but still better.
USAA has a 84 mth refinance if you can qualify, and then your looking at probably less then 7% 84 mths, you will be better off, probably in the 700's.
you have to be militry or related to someone in the miliary.
try your local credit uniuon and also try pen fed.

[1ForAllFor1]

I'm not military, nor do I have that connection, so that's out. ...But you're also suggesting that I try credit unions? They do auto refinancing? Any idea if it's difficult to get approved?

[Space gray]

If you got the base rate for the lease (and assuming no MSDs) and you signed in July, the money factor was 0.00270, which is ~6.5%. Unless you can find a bank offering a rate lower than that, I would just keep the lease and buy the car at lease end. At that point you'll know more about the car and whether it's worthy of keeping. My $0.02.


However, if the dealer got you to pay a mark-up in the rate then it would be a different story. There's also a MF bump if you didn't put a security deposit and you're a new leasing customer. Figure out what rate you have and do your math.

[Buschy]

yes credit unions do refinancing, and no not hard you just have to find one you can join.

http://www.truliantfcu.org/page2.php.../aid/8/pid/127

http://www.vistafcu.org/loans/defaul...ontent=loanapp

[1ForAllFor1]

Well, Partners Federal Credit Union is for Disney employees, and that's definitely not me... so I'm afraid it's out. The other one though, Truliant, offered me a pretty good rate over a 72 month period which I am strongly considering. It would bring my monthly payments down to $900 flat. Can anyone suggest some other decent credit unions to try? I'd like to compare notes. Thanks!

[tkbr0wn]

If you refinance into a 72 or 84 month loan you are going to basically be upside down for the first 5 years of the loan and only saving > $100 a month. My sugeestion would be to ride the lease out for the whole three years, turn it in. Then buy a new 135 with all the new bells and whistles for UNDER invoice on a 60 month loan for less than 800 a month.

You will end up with a newer car with less miles that you will OWN in the same amount of time that you will own your current car. Dont go do something crazy and compound your mistake.

[1ForAllFor1]

But... But... It wouldn't be a "Year One of the 1!" :wink:

I hear ya. And don't worry, I'm going to be giving this a LOT of thought before actually making a move. But I would like to hear some other credit union suggestions. I had a good conversation with the one that made me the 72 month offer (Truliant), so maybe a different CU can do even better? Here's hoping!

[1ForAllFor1]

OK peeps, Truliant got me down to $850 a month over 72 months... that's AWFULLY tempting. Thoughts? Should I do this thang?

[lannypoffo]

I love 3 Musketeers bars.

[1ForAllFor1]

That's really nither here nor there, but I'm with you.