JarodL

I leased my escalade for 3 years 9 months ago, so i have 27 months left. I did a one pay lease, all paid up front dont have to make any more payments, the thing is Id like to trade it in and lease a M3 for the remainder of my lease term 27 months, would a BMW dealership take my truck in on credit or some form and have me pay a certain amount like 5k to lease a new M3 for 27 months? Anyone know if you can do something like this?

Pure Adrenaline

iTrader: (2)

You will pay a hefty fine for terminating a lease early. If BMW takes it as a trade-in, they will simply add the fine and any other costs on to the cost of leasing the M3.

Check out www.swapalease.com

Maybe you can get lucky and someone will take it off your hands.

Good luck.

Starter

You have way too much disposable money and not nearly enough thought about what you do. Sit back, take a deep breath and get a life.

Shawn S

I would think someone with that much FUN MONEY available would have better “money sense” then this.
And a STUDENT no less.

You must have rich (and careless) parents.
Just go hit up daddy for a bigger “allowance”.

Shawn S

fuzzy02CLS

iTrader: (2)

Your guys are so bad

Call your leasing company. Ask them, Call the BMW dealer, & ask them. We can not tell you, cause I'm sure no one here knows for sure. You never pay a lease up front. However, since you did, you might be able to get out of it, since they have all their money already.

chef chris

There are many more factors to leasing a vehicle than we can advise you on here.

Go talk to the GM dealer who put you in this thing or call GMAC & ask for a payoff...just tell them you want to buy it(which is what the BMW dealer will really be doing anyhow).

& follow the advise here...get some money sense quick before you buy water-front property in Ohio...

JarodL

I love how people on this forum judge when they have no f****** idea what they are talking about. To the people who responded with helpful posts thanks. To ShawnS and Starter please dont be so jealous, maybe if you knew how to manage your money better you could buy nicer toys. The money I spend and am spending is mine. Its amazing how quick people are to criticize someone else because they can do and buy things that they themseleves cant. As for my money sense, well I was obviously smart enough to realize that by paying the lease up front I'd be saving over 5k in interest.

GEB

Wow, never heard of anyone who did that up front payment thing on a lease. Most people lease so that they can get a car they can't really afford (or don't want to afford). Anyway, a 5 year lease is a bad idea 95% of the time. You should really keep a lease term at about 36 months ... the residual value will kill you on a 5 year lease.

That being said, what's the buyout value of the car? Call GM and find out how much they would take to purchase the car from them now. With that information, you can either sell the thing or at least you'll know how much you need to get as a trade. By the way, dealers do this all the time.

One last thing, why the M3?

BEETROOT

But by paying the lease up front, you sacrifice the opportunity to invest that cash and earn X% on it, correct?

So unless you were paying 10% + on your lease, I would think in the long run its not that big of a deal.

Correct me if I'm wrong, I don't know shit about leases...just thinking from an investment standpoint.

And good luck on the M3 thats a fuckin sweet ass car

JarodL

My lease is 36 months, by paying up front i avoid the built in interest payments in the lease. Its nice to see someone ask why before making comments. I do a lot of driving through manhattan etc, I called my insurance company and the M3 would be less, gas savings would be pretty substantial since this thing cost about 55 to fill each week and parking for cars is cheaper then SUV's in manhattan. Which may not seem like a lot but most places charge doube or near it for trucks. So it was just an idea that I was running through my head that I would do if it would cost me less then 5k, because essentially I would save that money through the reasons I listed.

JarodL

I cant remember the exact rate but the built in rate was between 5-6 percent in Cadillac's lease. Plus some dealers will offer you a discount for paying up front, like buying a car in cash.

Shawn S

I’m not jealous. It’s just that we have lots of posers here and you never know who’s on the other end of the keyboard.
I could go buy a Porsche and Escalade TONIGHT for cash if I wanted to, but I’d rather save the money for later in life.
I’m not asking you to scan and post your tax returns, but all your profile says is Student and no age.
That tells me that you’re a 16-year old momma’s boy unless you share a bit more info about yourself.

BEETROOT

get the 05 vette instead

JarodL

I created that profile four years ago when I joined the forum and havent bothered to update it since. The vette is nice, but I still dislike the interior, plus I think dealers would be more willing to deal on a M3 since its been out for a few years already and all of the bugs are worked out.

lou_RENAMED

I know Jrod and believe me he's the real deal...

Jrod if you want the M3 and could get outta of the truck do it bro ....I love trucks but not enough to trade in a sporty ride

if you can get outta of the truck why not buy the M3 cause the resale value on them is top notch as long as you take care of it.

its a beautiful car and drives great I dont see how 2 or 3 years will change 0-60 in less than 5 sec.



Lou

Starter

I'm not jealous of you or your money, and I could probably buy & sell you if necessary. If you can afford the lease up front, you should have just bought the car for cash in the first place, which would be the smart thing to do. Just because you have money, what ever the source, that's no reason to spend it foolishly.

There are only two reasons to ever lease a car: 1) You have a legitimate business write off. 2) You can't afford the car and leaseing is the only way to get it, even though you're going to be hosed at the end of the lease.

JarodL

hahaha, buy and sell me

chef chris

Did you do that math yourself, or did the dealer do the numbers?

Cause that doesn't make sense...if you would've saved over $5K in interest on a 39 month lease...your interest rate would have to have been through the roof.

You may have saved some money, but there are always consequences for early lease termination...especially with GMAC...unless you are buying the car. So, the money you saved may be of no matter after any fees they charge.

And this is good advise:

ChinozTL

Here's the deal with your lease. If the BMW dealer takes the truck in as a trade (which they will b/c your gonna get a car from them) they will offer you book value for it. Now since you leased your first vehicle you signed a contract that says you will pay $xxx per month for 36 months and then you have the option to buy at end of lease for $yyy. Since you already prepaid the lease, all that is left to pay now is the $yyy. There is also no penalty from GM b/c you fullfilled the lease obligation by paying the total number of payments and the buyout option at lease end. So if BMW offers you a trade in of anything higher than $yyy, you pocket the rest. For example if say the option to buy at end of lease is $25,000 and the current trade in value is $32,000 that means you have $7,000 to put towards that M3.

This may sound good to you, but you have to remember that you are only gettin $7k when maybe you prepaid them $22k (just made up for examples sake) That truly means you paid $15k to drive the car for 9 months.

JarodL

I dont understand why I have to justify my purchases or why i did something to people over the internet whom I dont know, but for the sake of putting this to rest I will. I leased the car because one I can and did write it off. Two, in the end a lease will cost you about the same as buying a car and then trading it in 3 years later because cars depreciate so much the first 3 years of ownership and finally, after dealing with the headache of buying cars then trading them in and getting a right price and going through all the hastle of dealing with a dealer on a trade in, Id rather loose a couple k, If I even do, which isnt likely. Now when I go to look at cars, I dont have to worry about a trade in, I can make offers in cash.

JarodL

Thank you, thats all i was looking for.

chef chris

...that end value they gave you is "future-dated"...it doesn't have any bearing on what you do now. They are saying that the Escalade will be worth $X in 36 months...not 9 months into the lease.

You need to check with GMAC...we can all hypothesize till we're blue in the face...but they will have to make the final call since they are the ones who actually own this vehicle.

Making a buyout request is usually the only way to get GMAC to give you a break on the balance. If they get a payoff request from BMW...you'll get burnt.

ChinozTL

Not necessarily. The future value is pretty much set. At the end of the lease they have to sell you the car for the residual value if you want it. They cant say they want more. Its all in writing. The BMW dealer will declare what is the present value(what they are willing to pay for the trade) and the customer is responsible for the difference. Payoff value is always the residual plus whatever payments remain on the lease term minus the future interest. I have turned in several cars early before and this is the method used. Some times they can be nice and give you a break on payoff.

I had a maxima that I needed to turn in early b/c the headlights got stolen 3 times in 6 months. I should have been upsidedown $6k, but under the circumstance they reduced it to $1k.
Besides this case for all my other cars the formula has been the same. No matter what you always take a hit b/c of depreciation.

Starter

Scuse me, but YOU'RE the one who put your business in this forum, we didn't ask you to post it.

The folks who do the leases know just as much as you or I about vehicle depreciation, and those costs are built into the lease. Don't let anybody kid you.

More than just a couple K is my guess.

chef chris

The future value isn't "pretty much set, it IS set. And it's a "FUTURE" value...not a value that's good 9 months into a lease...it applies at LEASE END only because it factors in depreciation.

Residual is by definition: [ n ] something left after other parts have been taken away; [ adj ] relating to or indicating a remainder; "residual quantity".

So, if it's BEFORE the term ends that's IN WRITING...he is obligated whatever GMAC requests he pay...because he has NOT fullfilled his lease to term & therefore BROKEN contract.

imaginis

:nutkick:

JarodL

No, I asked a question about trading in before a lease is up. Your first comment was "You have way too much disposable money and not nearly enough thought about what you do. Sit back, take a deep breath and get a life." Which had nothing to do with what I was asking, then you responded with you could buy and sell me, which is a complete joke, Ill let you save some humility and not embarass you. If you have nothing constructive to put into this then you should get a life and quit responding to peoples threads that you have nothing to offer to.

chef chris

Jrod...did you call GMAC yet? I'm interested in the outcome.

chef chris

JarodL

Basically, the least expensive way would for me to pay the buyout now, and go trade the car into BMW towards a lease. However, BMW wont do a 27 month lease, Id have to start an entire new lease etc, which Im not interesting in doing. My original goal was to trade it into a dealer, have them take over my lease for the remaining time period put me in a M3 for the next 27 months and Id pay a fee, under 5k i was hoping. But its far too complicated and it would cost more then that, so Im not interested in doing it. Im happy with my truck and love driving it, this was something that if I could have done relatively painlessly and inexpensive I would have, if not, no big deal. Thats all.

chef chris

Well, glad you worked it out. Leasing isn't a bad thing to do, but it can be nasty...depending on who does the financing.

JarodL

I like it because its usually a lot easier when it comes time to trade in and get a new car, and its great if you can write it off. This isnt something im dying to get out of, just was thinking about it yesterday and if I could do it great, if not no big deal. Thanks for your help.

bkknight369

I fucking HATE GMAC...they hozed me arround a lot for early termination...i dont think ill lease another car again

Sux you couldnt get the m3...its a sweet-ass ride

some people cant STAND the idea that some parents maybe, just MAYBE...want their kid to get something they themselves might not have gotten as a kid...bunch of haters