SDkath

Hello,

I purchased my LS460 in Jan 09. It has only 11,000 miles on it and is basically in brand new condition. I have a friend who sells BMWs and he has offered to "trade in" my lease for a 7 series. He said I need to find out the payoff of my lease (I called TMCC and it's $51,000). Then he would just pay off the lease and give us $3000 additional money toward the lease of a 2010 7 series Beemer.

I called TMCC and they said that is fine and there are no early termination penalties or additional expenses. This seems too good to be true so I am asking for advice here. It seems that the Blue Book is slightly above my payoff quote so this would be a good deal for me. We live in CA and I guess there are no additional taxes to pay either?

I would appreciate any and all advice about terminating the lease early. Please though don't give me advice about Lexus vs BMW. I am interested in making the trade for a personal reason so I don't want to debate the merits of each.

Thanks so much in advance,

Katherine

cmbnova

Sounds ok. Typically lease payoff is not beneficial because it means you are paying off early payments. To safeguard get an independent value on the Lexus..what is it worth on the street. Then make sure you are getting a good deal separately on the 750.

bugatti

Can't really say if it's a good deal or not, just make sure they don't increase the capital on your new lease. It all depends on the deal you get on the 7 series lease.

Just FYI, if you pay off the $51K yourself, you will have to pay sales tax on that amount. If a dealer pay it off for you and take the car, then they won't be paying tax for it.

redline624

So you purchased or leased a ls 460?

usermel

He mistakenly stated purchase at the start I think and later said he leased. Just a guess. To the thread starter the deal sounds ok, Its never good ever when we trade a lease. That said, this deal isnt bad as leases go. If your doing it more for personal reasons which I respect 100,000% go for it. Do you. If it is what you need to do or want to do if its for the friend or for you do it.

Leases are complicated enough. Just get the BMW for your reasons and if you have decided to do so, do it fellow and soon to be past clublexus memebr. All the best and this deal sounds ok to me by lease trade in standards.

Remember, leases aren't like trading purchases so, that alone says what I and many experienced when leasing in the past and trading. Its never a great money decision. If you need out of or just want a BMW do it and move on and enjoy your LIFE. BMW's are great cars to me, I like them. Go for it buddy!! L.G.N.M

Nospinzone

Uh, guys, I think "Katherine" is a she.

Katherine, I would go to a couple of the Bimmer boards and do a search for leasing there. You can also get some excellent info in the Edmunds forums.

As for "I have a friend who sells BMWs and he has offered to "trade in" my lease for a 7 series.", I'll put this as delicately as I can. Just be careful whenever a friend wants to sell you something.

SDkath

Hi there,

Thanks for all of the advice. Yes, my LS is on a lease, not a purchase. Sorry. I spoke in detail with the dealer today and here is what he said. They would pay off the lease (payoff quote amount of $51k) and keep the LS460. The KBB value is close to $60,000 "retail" for the car and about $55,000 as trade in (low miles, perfect condition...).

Then they would have me lease the 750i 2010 with the current lease deal they have. Here is the catch. The current lease requires about $8000 cash down. I asked if they can split that with me and have me pay only $4000 cash down (essentially giving me a trade in value of about $55,000 for the Lexus). They said they will let me know.

My monthly payments surprisingly are the same for the 750 ($1075ish) compared to my LS. I don't know how that could be as the 750 is priced around $85000 and my LS was only $68,000 when purchased.

I am reading up on all of the lease options today to try to understand the many complexities (residuals, etc). I would think they'd like to get rid of the 2010s since the 11s are coming any day now... I am hoping for a better deal.

Katherine

usermel

Yes, its very complicated as leases are initially and are further complicated when we trade in on them before the lease is up. The thing to be sure of is the cost after the lease is up. Im curious if they will transfer the cost to the end of the lease meaning if they sy yes to the $8,000 split to have you only pay $4,000 down will they put it then in the deal for the 750 BMW. AS one member said, and I can agree 100,000% with is when doing a deal with friends be careful fellow member.

Friends are different. Some loyal and some manipulators of there friendships. When it comes to $ we all find out what kind of friends they are or if they are even friends at all. The type of lease plays a part in the payments as well. Find out what type of lease and the interest rate your paying. As you give more details I'd pass on this lease. Before I stated to go for it, now with the $4,000 down and a payment that is the same I say stay in the LS 460, especially if your doing it to help your friend due to slow car sales etc.! Now , that said if its for you and you only and you just want the BMW750, get it but, if cost is a factor I'd wait till my LS460 lease was up and make the smarter business decision. Remember, a trade for a higher priced car means more owed at the end of the new lease as well as at the minimum another $4,000 down(that 3 lease payments and a few bucks short of 4 lease payments, alomost a third of a years payments)! Whatever you decide keep us posted and if you dont need to dont rush and do whats BEST for YOU fellow member! I think a better deal can be had with this deal if your patient as well. BE WISE!!!! L.G.N.M

Craig B

The reason the lease on the BMW is low, they can't get rid of them. I just traded off my 2009 BMW X5 and the reliability of the BMW was terrible. If you value your time, stick with the Lexus. Otherwise, you will be at your BMW dealership for service all the time. My BMW was in the shop over ten times in one year.

Good luck with your decision,

Craig

JFNash

I'm not sure if $4K on a BMW is a good deal.

To me BMW is a liability, not an asset.

Anyway, I wish you the best luck.

dimapb

The monthly payments are about the same for a more expensive BMW is because BMW can play with their residual value and Lexus will not change it. In your case, it's probably very high, which means you are actually paying off less (or borrowing less) and therefore your payments are less. If you are not planning to keep this car after your lease is over, it doesn't matter how high the residual value is, but if you want to keep it, then you need to think about it.

jimmyford1

Lexus is one of the few leases that can be terminated early without getting crushed on the difference between payoff and true market value. This is simply because of the more conservative residuals used. BMW can inflate the residual to reduce the payments. Thats a good deal for the consumer if 1. you like the car. 2. you plan to keep it until lease end. Getting out early will not be an option.

usermel

Whatever the case Ms. Katherine I hope the best for you. Do whats best for you. The BMW is a fun car to drive so enjoy it. L.G.N.M