What's the penalty on ending lease early?
03-20-2008, 07:28 PM
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Hi guys,
I'm trying to figure out a fair purchase price for a pre-owned 5 series with less than 1000 miles. If it were a returned lease, what is the penalty to terminate early? In other words, how much has the dealership already profited? If it were purchased to begin with, how much would the dealer buy back the car for? They are trying to re-sell the car at virtually the original MSRP. Should I take into account that the dealer has already made money once on this car and therefore make a lower than usual offer? Where would you start with your offer?
Thanks,
Bryan
I'm trying to figure out a fair purchase price for a pre-owned 5 series with less than 1000 miles. If it were a returned lease, what is the penalty to terminate early? In other words, how much has the dealership already profited? If it were purchased to begin with, how much would the dealer buy back the car for? They are trying to re-sell the car at virtually the original MSRP. Should I take into account that the dealer has already made money once on this car and therefore make a lower than usual offer? Where would you start with your offer?
Thanks,
Bryan
03-20-2008, 07:37 PM
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I don't think the dealer would tell you if the car was an early lease return. That wouldn't be very smart since it would be giving you leverage.
I've seen cars below 1k miles being offered with "demo" discounts ranging from $1,000 - $1,500.
I've seen cars below 1k miles being offered with "demo" discounts ranging from $1,000 - $1,500.
03-20-2008, 07:37 PM
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528, 535, 550? Options? Was the e60 a demo or executive lease?
03-20-2008, 09:32 PM
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Originally Posted by birdmanbryan' post='548443' date='Mar 20 2008, 08:28 PM
Hi guys,
I'm trying to figure out a fair purchase price for a pre-owned 5 series with less than 1000 miles. If it were a returned lease, what is the penalty to terminate early? In other words, how much has the dealership already profited? If it were purchased to begin with, how much would the dealer buy back the car for? They are trying to re-sell the car at virtually the original MSRP. Should I take into account that the dealer has already made money once on this car and therefore make a lower than usual offer? Where would you start with your offer?
Thanks,
Bryan
I'm trying to figure out a fair purchase price for a pre-owned 5 series with less than 1000 miles. If it were a returned lease, what is the penalty to terminate early? In other words, how much has the dealership already profited? If it were purchased to begin with, how much would the dealer buy back the car for? They are trying to re-sell the car at virtually the original MSRP. Should I take into account that the dealer has already made money once on this car and therefore make a lower than usual offer? Where would you start with your offer?
Thanks,
Bryan
03-20-2008, 10:01 PM
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My Ride: 2008 Alpine White 550i Sport, Cream Beige Interior, 6-Sp Manual - retired 9/2011
I turned in my 335xi after 1 week with 400 miles on it! I couldn't take the uncomfortable seats and confining space. I got smoked on the deal, and I am sure they sold it for almost what it cost new. They made their initial money up front on me (about $2500), and then charged me an extra grand to turn it in, which I am pretty sure was entirely profit, and then a guy bought it a week later for a few grand over what they bought it back for. So, if you are looking to lose around $4K quick, this is a good way to do it.
However, the earlier the better if you must do it....the longer you wait, and the more miles you put on the the more it will cost you to get out of the deal. I am currently way upside down on my current lease, 10 months out, and it would cost me about $8K to get out of it vs. the initial $1K it cost me on the first one. :thumbsdown:
However, the earlier the better if you must do it....the longer you wait, and the more miles you put on the the more it will cost you to get out of the deal. I am currently way upside down on my current lease, 10 months out, and it would cost me about $8K to get out of it vs. the initial $1K it cost me on the first one. :thumbsdown:
03-21-2008, 06:17 AM
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You don't say where you are from but most of us got money off of a new car, I got $2600 off MSRP. Why consider a 1000 mile car for MSRP when you can get a 0 mile car for the same or less?
03-21-2008, 11:55 AM
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Originally Posted by pennetta' post='548585' date='Mar 21 2008, 09:17 AM
You don't say where you are from but most of us got money off of a new car, I got $2600 off MSRP. Why consider a 1000 mile car for MSRP when you can get a 0 mile car for the same or less?
03-21-2008, 12:38 PM
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You-> 
<- Your lease company
<- Your lease company
03-21-2008, 07:12 PM
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Originally Posted by geneatals' post='548451' date='Mar 20 2008, 10:37 PM
528, 535, 550? Options? Was the e60 a demo or executive lease?
03-21-2008, 07:39 PM
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wouldn't the car be sold at the market price regardless of what deal was done prior?
lets supose the last owner put down $4000 and then they charged him another $2000 because he broke his lease contract... does that mean that u can argue that they made all this "profit" and they should sell u the car for $6000 less? im sure they might give u an insentive cause the car has 1000 miles on it but i highly doubt they will honor any profit that was made before u purchase the car...
im just speculating tho.... and theres only one way to find out... go talk to your dealer
lets supose the last owner put down $4000 and then they charged him another $2000 because he broke his lease contract... does that mean that u can argue that they made all this "profit" and they should sell u the car for $6000 less? im sure they might give u an insentive cause the car has 1000 miles on it but i highly doubt they will honor any profit that was made before u purchase the car...
im just speculating tho.... and theres only one way to find out... go talk to your dealer