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  #1  
Old 07-14-2013, 04:57 PM
uter's Avatar
uter uter is offline
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Before you post a lease assumption ad...

I am consistently surprised by the ads placed for lease assumption and what the lease holder hopes to gain.

Let's be clear, you are putting up your lease because your circumstances (priorities/finances/mileage) have changed. You are in a lease you no longer want. To extricate yourself from this lease is going to be painful. Having another consumer assume your lease is the best you can hope for.

Why, then, do people consistently post lease assumption deals that are complete crap?

This is your financial boondoggle. You agreed to finance the difference between MSRP and the residual value. You underestimated how many miles you would drive per year. You put down money for cap reduction to get a lower payment.

After all that, you expect a lease assumer (who is assuming the risk of damage you might've inflicted on the car) to pay a $500 lease transfer fee to BMWFS.

Or, better yet, you want cash up front to reimburse you for the downpayment you made on the lease for cap cost reduction.

Somewhat absurd is the expectation that the entire amount of multiple security deposits be repaid (on the gamble that all the MSD's will be returned at lease end).

Are there lease assumptions out there that are good deals? Of course there are. At lease inception, you might get a significant discount off MSRP on a car that has a high residual value and the lease contains an excellent money factor. That's a lease worth assuming. The lease assumer saves on having to pay lease inception fees, doc fees, etc and gets to make a reasonable payment. I, myself, have assumed leases and had them assumed. It was a very satisfying experience and can work well.

But folks, please, if you signed a bad lease (high sticker price, low residual, poor money factor) don't expect to get bailed out and walk away scott free. It's going to have to hurt a little. Be prepared to eat that lease transfer fee. Offer up the cash incentive. Kiss those MSD's goodbye.

Otherwise, to someone looking to assume a lease, it's no different than being asked to overpay for a used car.

If you took the time to read my rant, I thank you and welcome your comments
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  #2  
Old 07-14-2013, 05:42 PM
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M5 Next M5 Next is offline
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I never understood why some people lease cars. I understand that if you like to change cars every few years and not worry about maintenance, or if your job comps you on the car, you may be leasing. And the majority of people leasing have one of those working for them. The minority, however, are wannabe ballers who do not read the fine print, see a chance to get into a nice car (but don't see the chance to BUY one a rung down the ladder or a couple years older for the same downpayment and payments), and take it. Then, a few months down the road, when they put too many miles on the car, get demoted on the job, or parents quit making payments they agreed to make for a year, they make up a sob story and it ends up on Craigslist and in the classifieds. Now, are there true circumstances to cause someone who would have went through an entire lease otherwise, to try and find someone to assume it? Sure, but the amount I've seen lately make me think most are just attempts to beat somebody in the head who knows less about leasing than the author of the ad just learned the hard way.
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  #3  
Old 07-14-2013, 06:51 PM
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uter uter is offline
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Quote:
Originally Posted by M5 Next View Post
... and it ends up on Craigslist and in the classifieds. Now, are there true circumstances to cause someone who would have went through an entire lease otherwise, to try and find someone to assume it? Sure, but the amount I've seen lately make me think most are just attempts to beat somebody in the head who knows less about leasing than the author of the ad just learned the hard way.
I hadn't considered the posts on Craigslist. I assume that anyone looking at Craigslist has a sticky on their computer screen that says "caveat emptor".

My frustration is the use of an enthusiast forum, like Bimmerfest, to post a crappy lease assumption ad. At the least, the poster should be prepared for some questions and even criticism. This is, after all, a collection of informed BMW fans. We can chime in with kudos for a good lease deal, but pointing out its shortcomings isn't crapping on someone's thread, it's about informing our fellow enthusiasts.
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  #4  
Old 07-14-2013, 07:13 PM
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M5 Next M5 Next is offline
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Quote:
Originally Posted by uter View Post
I hadn't considered the posts on Craigslist. I assume that anyone looking at Craigslist has a sticky on their computer screen that says "caveat emptor".
Hey! I found my M5 on Craigslist, and I don't have one of those!
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  #5  
Old 07-15-2013, 07:18 AM
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"You put down money for cap reduction to get a lower payment." - whoever does this is truly is an IDIOT. You will be paying the same total amount regardless how you break up the payments.
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  #6  
Old 07-15-2013, 07:36 AM
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uter uter is offline
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Quote:
Originally Posted by 0428 View Post
"You put down money for cap reduction to get a lower payment." - whoever does this is truly is an IDIOT. You will be paying the same total amount regardless how you break up the payments.
Also, gap insurance does not cover your downpayment. If the leased car is totaled or stolen, that down payment is gone.
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  #7  
Old 07-21-2013, 01:11 PM
si010986 si010986 is offline
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Quote:
Originally Posted by uter View Post
Also, gap insurance does not cover your downpayment. If the leased car is totaled or stolen, that down payment is gone.
Save on interest and for a lot of people cash flowis more important than one time expense.
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  #8  
Old 05-07-2014, 08:17 AM
omaralt omaralt is offline
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i know this is an old thread (this thread was linked from the classifieds forum) but i think you are way off here. sure you may be right sometimes, but many times (myself included) we just get bored of the car. i'm not over mileage, not in any financial duress, and no change in work/home life. i just got bored. i also know how to negotiate a lease, so i negotiated great lease terms ($760 + tax for a $74K MSRP 550i w/15k miles/yr) so now i can transfer this to somebody else who may not be able (or wrong timing) negotiate a similar deal. i've transferred out of a lease before and it was great for both people involved.

now to the MSD issue, i agree that it severely complicates the issue. i currently have MSDs on my lease and have gotten offers to be reimbursed $3k out of $6K. I'm not quite ready to lose $3k, so i happily keep driving my car

so no, you dont always have to take a huge beating when transferring out of your lease. as long as your not desperate AND you negotiated good/great lease terms you shouldn't have an issue transferring out without taking too much of a lose
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  #9  
Old 05-07-2014, 08:37 AM
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uter uter is offline
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Omaralt, I think leases like yours are the ideal ones to assume.

At the time I posted this, I think my frustration was with a rash of absurd lease assumption posts.

I'm very much in favor of the process, but I think sometimes the person exiting the lease has to do some reflection on how much the convenience of exiting a lease is going to cost.


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  #10  
Old 05-07-2014, 09:20 AM
omaralt omaralt is offline
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Quote:
Originally Posted by uter View Post
Omaralt, I think leases like yours are the ideal ones to assume.

At the time I posted this, I think my frustration was with a rash of absurd lease assumption posts.

I'm very much in favor of the process, but I think sometimes the person exiting the lease has to do some reflection on how much the convenience of exiting a lease is going to cost.


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yes but leasing is not the problem here. it's buying something you cant afford, bad future planning and/or negotiating bad terms (either lease or buy). i also see people who are selling a nearly new car with a ton of negative equity because of bad planning. those are even in worse shape, because even if you negotiated a good deal, you're still going to have some negative equity. while if you negotiated good lease terms, you may be able to walk away after a few months with no penalty. so leasing is not the issue here
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  #11  
Old 05-07-2014, 07:44 PM
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uter uter is offline
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Location: Scottsdale, AZ
 
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Quote:
Originally Posted by omaralt View Post
...so leasing is not the issue here
I appreciate your input, Omaralt, but the original (July 2013) post was about leases, specifically bad leases that people get into and now want (or need) to exit.

At the time I first posted, I think I was finding a lot of people were posting such lame lease assumptions, that they were wasting our time just for looking at them. People roll negative equity into new leases, lease cars with low residuals, or get stuck with high money factors. These, obviously, are not leases one would want to assume.

So, if someone wants their lease to be assumed and they made a poor decision when they initiated the lease, they need to realize that getting out of this lease is going to hurt. It's going to hurt to have to offer an incentive, pay the transfer fee, or lose those MSD's.

I think we're agreeing that some people make bad decisions when they lease, but you're incorrectly extrapolating that I therefore feel all leases are bad. They aren't. Sounds like yours are good. I'm glad. I just want people to stop posting unrealistic lease assumption ads in the classifieds.
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  #12  
Old 05-09-2014, 09:47 AM
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thumper_330 thumper_330 is offline
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Uter; while I agree with everything you said, again that idea of "caveat emptor" would be quite important here. Anything you buy online should have that warning regardless of whether it's on Craigslist or on here.

At the end of the day, I don't see the harm in people listing their bad leases. However, they also shouldn't be surprised when no-one bites on it. It's really up to the shopper to figure of the deal being offered is for them or not, and if they don't have the faculties to correctly figure it out, "caveat emptor".

For my part, I got out of a lease by getting someone to assume my lease because I wanted an M3. Specifically, I wanted an M3 sedan and the guy selling it just happened to be interested in assuming the lease on my 135i. It was mutually beneficial, and I actually handed him a pretty good lease.
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