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Old 08-03-2019, 11:11 AM
travlinmanny travlinmanny is offline
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BMW single payment lease questions

I am thinking of doing a single payment lease. Is there an automatic MF reduction with a single payment lease, or is this something that you have to haggle with the dealer about?

With a single payment lease, are you protected if the car is totaled; do you receive your unused funds back, or do you lose everything?
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Old 08-03-2019, 12:10 PM
DonnieZ DonnieZ is offline
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As I understand you are protected against total loss. Itís not all CCR, the money essentially sits in an account and is drawn off monthly.

BMWFS makes money on your money, hence the MF incentive.


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Old 08-03-2019, 02:12 PM
CTSoxFan CTSoxFan is offline
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There is a reduction for doing a single pay, I believe it is .0005 if i recall, but it may have changed. if you do a search you will find out the current amount.

I am not sure what happens in the event of a total loss. I mean you certainly wouldn't lose the money, but if it lowers your payoff/balance due you could end up in a worse position as you wouldn't be taking advantage of the GAP insurance.
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Old 08-03-2019, 04:06 PM
mauicoug mauicoug is online now
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There really isn't a financial advantage to a single pay lease, the discount is very small. You would be better served using the MSD's to lower your money rate. Even with today's low interest rates, you would probably come out ahead earning 1% vs. the small discount.
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Old 08-03-2019, 04:28 PM
travlinmanny travlinmanny is offline
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I have a car to trade in. As I understand it, trading in the car and applying the funds to a new lease can save me over $1000 in sales tax. I don't want to do a cap cost reduction as I would be at a loss if the car is totaled; a single payment lease seems safer.
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Old 08-04-2019, 03:43 AM
CTSoxFan CTSoxFan is offline
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Quote:
Originally Posted by travlinmanny View Post
I have a car to trade in. As I understand it, trading in the car and applying the funds to a new lease can save me over $1000 in sales tax. I don't want to do a cap cost reduction as I would be at a loss if the car is totaled; a single payment lease seems safer.
You're combining issues that don't need to be combined.

First, if your state (I am assuming NY) allows offsets for sales tax on a trade in vehicle, it doesn't matter if you do a standard lease or a one pay, as you will be paying your rate times the total of the payments up front. If you have a trade offset it lowers the total taxable amount by the value of the trade, again regardless of standard lease or one-pay.

As to the comment about security deposits - NY does not allow them, so it is a moot point, UNLESS you go to NJ or CT to buy your car, which is/was a very popular option around here. You may want to look into that, as then you can put down 7 security deposits to buy your rate down by .0035.

Lastly, I would suggest doing the math on the savings for one pay vs. traditional lease. The savings may not be worth tying up your funds (plus the question of what happens in a total loss).
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Old 08-12-2019, 10:17 AM
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Quote:
Originally Posted by travlinmanny View Post
I have a car to trade in. As I understand it, trading in the car and applying the funds to a new lease can save me over $1000 in sales tax. I don't want to do a cap cost reduction as I would be at a loss if the car is totaled; a single payment lease seems safer.
Sell your car and don't use it as a trade in. Don't make your transaction complicated this could allow the dealer to take advantage of you.
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