Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > Ask-A-Dealer

Ask-A-Dealer
Talk to our team of BMW Client Advisors. Get all of your buying/financing/leasing questions answered here!

Reply
 
Thread Tools Display Modes
  #1  
Old 04-08-2005, 06:31 AM
BMW29 BMW29 is offline
Registered User
Location: Wellington
 
Join Date: Mar 2005
Posts: 10
Mein Auto: 2004 Lexus ES 330
One time lease payment......

I came here a few weeks ago, looking for advice from people who have had prior dealings with BMW. Many people have helped me tremendously, especially Jon and all the information he posts.

I have also had much misinformation, especially when it concerned a one time lease payment. The going belief on this board is, if you get into an accident, you have lost your entire payment. That is not true! For anyone thinking of a one time lease payment, contact BMWFS and they will explain to you, as they have to me, what happens in the event of a vehicle that is totaled while under such a lease. You will be credited for the unused portion of the cars lease, after all past due payments and deductibles have been met. The up front payment is not considered a capital cost reduction, and is evenly divided up by the amount of months the term of the lease is for.

I asked a customer service rep the following question:

If I were to make a one time only lease payment on a BMW, and 2 months later the car was totaled in an accident, would I lose the entire payment.

The answer was:

You would be responsible for any payments due before the accident and the unused portion of the lease would be refunded to you.
Reply With Quote
Advertisement
  #2  
Old 04-08-2005, 10:26 AM
webguy330i webguy330i is offline
Head-In-Sand Dumbass
Location: San Jose, CA (silicon valley area)
 
Join Date: Jan 2002
Posts: 2,193
Mein Auto: BBY Evo VIII
Quote:
Originally Posted by BMW29
I came here a few weeks ago, looking for advice from people who have had prior dealings with BMW. Many people have helped me tremendously, especially Jon and all the information he posts.

I have also had much misinformation, especially when it concerned a one time lease payment. The going belief on this board is, if you get into an accident, you have lost your entire payment. That is not true! For anyone thinking of a one time lease payment, contact BMWFS and they will explain to you, as they have to me, what happens in the event of a vehicle that is totaled while under such a lease. You will be credited for the unused portion of the cars lease, after all past due payments and deductibles have been met. The up front payment is not considered a capital cost reduction, and is evenly divided up by the amount of months the term of the lease is for.

I asked a customer service rep the following question:

If I were to make a one time only lease payment on a BMW, and 2 months later the car was totaled in an accident, would I lose the entire payment.

The answer was:

You would be responsible for any payments due before the accident and the unused portion of the lease would be refunded to you.
That's exactly how it should be, because insurance will pay off the value of the car, and the gap coverage is just that. Otherwise BMWFS would be basically comitting insurance fraud by taking YOUR money for the car + the extra money from the gap coverage!

Good investigative work.
__________________
2006 GG Evo IX GSR
got acronyms?
"Bbbzzzzzst and all that..." - rost12
Reply With Quote
  #3  
Old 04-09-2005, 01:17 PM
JonMarks330i JonMarks330i is offline
Registered User
Location: East Coast
 
Join Date: Apr 2005
Posts: 15
Mein Auto: Will be 330i
How much was a one time payment and what were the terms and vehicle specs ?
It sounds like a very interesting way to lease a vehicle.
Reply With Quote
  #4  
Old 04-09-2005, 01:33 PM
Robert A Robert A is offline
Officially Welcomed to the 'Fest
Location: Los Angeles
 
Join Date: May 2003
Posts: 3,385
Mein Auto: BMW 535d
Granted that they'll do this, but I wonder how they'll compute the amount. It's possible that they might use the straight line method (bad for you, good for them), or the accrual method (fair for everyone involved).

Quote:
Originally Posted by BMW29
I came here a few weeks ago, looking for advice from people who have had prior dealings with BMW. Many people have helped me tremendously, especially Jon and all the information he posts.

I have also had much misinformation, especially when it concerned a one time lease payment. The going belief on this board is, if you get into an accident, you have lost your entire payment. That is not true! For anyone thinking of a one time lease payment, contact BMWFS and they will explain to you, as they have to me, what happens in the event of a vehicle that is totaled while under such a lease. You will be credited for the unused portion of the cars lease, after all past due payments and deductibles have been met. The up front payment is not considered a capital cost reduction, and is evenly divided up by the amount of months the term of the lease is for.

I asked a customer service rep the following question:

If I were to make a one time only lease payment on a BMW, and 2 months later the car was totaled in an accident, would I lose the entire payment.

The answer was:

You would be responsible for any payments due before the accident and the unused portion of the lease would be refunded to you.
__________________
Robert A
BMWCCA Member



Current
2014 535d, M Sport, Space Gray/Mocha Nappa
Prior
2007 530i, White/Black, 6MT
2001 530i, Orient Blue/Beige, 5MT
1994 325is, White/Black 5MT
1984 325e, White/Black 5MT
1983 318i, Delphin/Beige 4MT
Reply With Quote
  #5  
Old 04-09-2005, 03:15 PM
01Byte's Avatar
01Byte 01Byte is offline
Pastafarian Extraordinair
Location: Phila, Pa
 
Join Date: Jun 2003
Posts: 2,341
Mein Auto: 335d
Quote:
Originally Posted by BMW29
I came here a few weeks ago, looking for advice from people who have had prior dealings with BMW. Many people have helped me tremendously, especially Jon and all the information he posts.

I have also had much misinformation, especially when it concerned a one time lease payment. The going belief on this board is, if you get into an accident, you have lost your entire payment. That is not true! For anyone thinking of a one time lease payment, contact BMWFS and they will explain to you, as they have to me, what happens in the event of a vehicle that is totaled while under such a lease. You will be credited for the unused portion of the cars lease, after all past due payments and deductibles have been met. The up front payment is not considered a capital cost reduction, and is evenly divided up by the amount of months the term of the lease is for.

I asked a customer service rep the following question:

If I were to make a one time only lease payment on a BMW, and 2 months later the car was totaled in an accident, would I lose the entire payment.

The answer was:

You would be responsible for any payments due before the accident and the unused portion of the lease would be refunded to you.
As one of those who thought that you would lose the whole amount.

I stand corrected!!

Thanks for the update..
__________________
May we be blessed by His noodly appendage and His almighty sauciness.
Reply With Quote
  #6  
Old 04-09-2005, 06:23 PM
The Other Tom The Other Tom is offline
Officially Welcomed to the 'Fest
Location: South Carolina
 
Join Date: Sep 2002
Posts: 1,925
Mein Auto: 2008 335i
Quote:
Originally Posted by JonMarks330i
How much was a one time payment and what were the terms and vehicle specs ?
It sounds like a very interesting way to lease a vehicle.
I believe it's called a pre-paid lease. You make all the lease payments up front. Watch out for the interest rate,though, because I think it's a bit higher than the normal lease rate.
__________________
2008 335i
2001 325i retired
2000 M Roadster Imola Red retired
1998 Z3 2.8L retired
Reply With Quote
  #7  
Old 04-09-2005, 08:57 PM
JB-From-FL JB-From-FL is offline
Registered User
Location: Tampa, FL
 
Join Date: Jul 2004
Posts: 76
Mein Auto: 2001 530i
I have done these in the past with

Quote:
Originally Posted by The Other Tom
I believe it's called a pre-paid lease. You make all the lease payments up front. Watch out for the interest rate,though, because I think it's a bit higher than the normal lease rate.

Much lower rates than making monthly payments. It is great because it does not cause you to lay out all the money up front. No payment shows on your credit report, as a realtor this saves me money on mortgages. Since I do not keep cars for long period of time and I can not seem to get a dealer to give me a decent trade this is the best way to avoid paying sales tax on the unused part of the car saving more than the lease cost.
Reply With Quote
  #8  
Old 07-07-2005, 10:05 PM
lilskel's Avatar
lilskel lilskel is offline
Officially Welcomed to the 'Fest
Location: Florida
 
Join Date: Jun 2005
Posts: 2,184
Mein Auto: 2011 335d ZMP
Do they even have a MF when it is a prepaid lease? It would be great if you could just pay the depreciation part all up front and then turn it in when your done with it
Reply With Quote
  #9  
Old 07-08-2005, 12:14 AM
LA X3 LA X3 is offline
Help me select an avatar
Location: Los Angeles, CA
 
Join Date: Jul 2005
Posts: 248
Mein Auto: 2005 X3 3.0
Quote:
Do they even have a MF when it is a prepaid lease?
While I don't know the terms of a prepaid lease, you can be certain they do. BMWFS isn't going to put out that much money and not make interest on it.

In a lease, the leasing company basically buys the car and charges you interest on the whole purchase price, plus the depreciation. Notice that the rent charge portion of your lease payment is suspiciously close to the monthly interest cost on a loan in the amount of the purchase price. It's not a coincidence.
Reply With Quote
  #10  
Old 07-08-2005, 06:33 AM
kyfdx's Avatar
kyfdx kyfdx is offline
Who, me?
Location: Kentucky
 
Join Date: Aug 2003
Posts: 2,462
Mein Auto: 2006 330Ci ZHP
Prepaid leases..

Money factor: Generally, they treat it as a normal lease, only with a lower money factor.. Then, they add up all the payments and that is what you pay upfront.. As an example, I remember a 36 month lease that had a .00225 money factor, but if you did a one-pay, they calculated the lease with a .0008 money factor.. A substantial discount for the prepay..

Totaled cars: One-pay leases aren't treated the same as a 36 month lease with a large cap cost reduction.. If the lease is ended, the single payment is treated as 36 equal payments, and a pro-rated refund is made for any portion of the lease not used..

So... One-pay leases (at least from BMWFS) can be good deals.. Definitely more protection than when you make a large cap cost reduction..

My details may be a little fuzzy... I'm sure one of our dealers can make any corrections..

regards,
kyfdx
Reply With Quote
  #11  
Old 08-01-2005, 01:42 PM
turpiwa's Avatar
turpiwa turpiwa is offline
Officially Welcomed to the 'Fest
Location: Perth for now
 
Join Date: Jun 2005
Posts: 1,651
Send a message via Yahoo to turpiwa
Mein Auto: E93 M3 Convertible
I may be being a little slow but - is 1 pay lease where you pay the (e.g) 36 mths of lease payment up front?
__________________

ED 2009 (5/2) E90 335i, 6MT - Le Mans Blue, Burl, ZPP(Blk Lthr), M-Sports, ZCW, Active Steer, Nav, shades, PDC, ipod, Sirius, CA, Smartphone
ED 2005 (11/18) E90 330i, 6MT - Monaco, Burl, ZPP(Blk Lthr), ZSP, ZCW, Active Cruise & Steer, Nav, shades, PDC, Sirius, CA
MY ED 2005 WRITEUP
EUROPEAN DELIVERY PICTURES (albums are in reverse order - sorry). NO NEED TO SIGN IN -beware - there's lots
Reply With Quote
  #12  
Old 08-01-2005, 05:15 PM
Krochelli Krochelli is offline
Officially Welcomed to the 'Fest
Location: Los Angeles
 
Join Date: May 2005
Posts: 106
Mein Auto: Boxster S
Yes.
Reply With Quote
Reply

Bookmarks


Forum Navigation
Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > Ask-A-Dealer
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
BMW FS deducted my lease payment twice ! mclaren General BMW 3 02-28-2005 01:41 PM
2002 M5 Lease Assumption Beastie Boy Classifieds 1 01-06-2004 05:52 PM
Lease, Euro Delivery and time on boat mecklaiz Ask-A-Dealer 4 06-13-2003 09:13 AM
Joined the Club! kyleschultz 3 Series / 4 Series 26 06-03-2003 01:11 PM


All times are GMT -7. The time now is 11:05 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
© 2001-2011 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms