[BavariaExclusive]

Hello,

I'm willing to take over a seller's lease. He has put down $5000 MSD to keep his payments low. He said I will definitely get that deposit back at the end of the lease. He wants $5000 cash at the front of the lease.

Does any know anything about this? Will I get that deposit back?

[Super6]

You may want to contact BMW to find out. Normally in banking when a person puts a deposit on a vehicle, that money is subtracted from whats owed over the life of the loan. Therefor a smaller amount is financed and that is how you arrive at lower payments. Personally, I am not seeing you getting that $5000 back. You may want to check on that.

[SonicEndeavor]

The OP is talking about MSD's on a lease, which the Lessee does get back at the end of the lease unless the car is damaged.
OP: Since you are assuming the Lease, the MSD's will go to you when the car is grounded at the end if the lease, but check with BMWFS to verify the MSD's. The transfer fees are around $500 ($100 credit app fee + $400 transfer fee).

[ezmaass]

Dude - not worth it! Yes, you'll get the security deposits back at the end, but you literally just told me in your other thread that you liked the idea of a lease transfer so you could avoid having to put a lot of money down up front. Now you're talking about laying out $5000 in the hopes you get it back at the end. You had better inspect every square inch of this car, because if the original lessee did anything to it, whatsoever, that detracts from the value at the end of the lease, it's coming out of those deposits!

I just don't understand why you're hung up on a lease transfer? It's not saving you ANYTHING. You're essentially getting a USED car with a lease based upon a NEW car's price. It's not a good idea 99 out of 100 times. You need to compare a lease transfer with a lease on an equivalent CPO. I guarantee you'll be paying more per month to take over someone's "new car" lease than to take out your own on a car that's lease rate will reflect its current value.

[BavariaExclusive]

I like short term leases and no out of pocket costs with low payments. If I can get that from lease transfers. I do them.

Thanks

[BavariaExclusive]

Ok so I made a deal to pay the person $4k upfront and I get back $5000 at the end of lease from MSD. So my lease transfer $500 + deposition fee $500 if any, will be covered.. I ran the carfax which is all clean and issues none. Only 5k miles on the car. Car is in great condition. Tomorrow I'll test drive it. Get the paperwork started and get this shiit over with. I keep 4k in the bank or 4k with bmw. It doesn't affect me. And if I owe anything at the end due to car damage. I will have to pay that regardless. Not to mention, the car also has rim and tire protection too.

At the end of the day. I pay no out of pocket+short term lease with low monthly payments.

[3rd party]

Originally Posted by BavariaExclusive

Ok so I made a deal to pay the person $4k upfront and I get back $5000 at the end of lease from MSD. So my lease transfer $500 + deposition fee $500 if any, will be covered.. I ran the carfax which is all clean and issues none. Only 5k miles on the car. Car is in great condition. Tomorrow I'll test drive it. Get the paperwork started and get this shiit over with. I keep 4k in the bank or 4k with bmw. It doesn't affect me. And if I owe anything at the end due to car damage. I will have to pay that regardless. Not to mention, the car also has rim and tire protection too.

At the end of the day. I pay no out of pocket+short term lease with low monthly payments.

Sounds fine to me. Like you said if the car is damaged you have to pay one way or the other, regardless if there are MSD's or not.

How did the sales tax work out?

[Grover432]

Originally Posted by BavariaExclusive

Ok so I made a deal to pay the person $4k upfront and I get back $5000 at the end of lease from MSD. So my lease transfer $500 + deposition fee $500 if any, will be covered.. I ran the carfax which is all clean and issues none. Only 5k miles on the car. Car is in great condition. Tomorrow I'll test drive it. Get the paperwork started and get this shiit over with. I keep 4k in the bank or 4k with bmw. It doesn't affect me. And if I owe anything at the end due to car damage. I will have to pay that regardless. Not to mention, the car also has rim and tire protection too.

At the end of the day. I pay no out of pocket+short term lease with low monthly payments.

If you keep doing short term leases, aren't you really in the ultimate long term lease situation??

[akhter]

Originally Posted by Grover432

If you keep doing short term leases, aren't you really in the ultimate long term lease situation??

but not with long term commitment and the ability to change cars all the time (not necessarily the latest ones but newish ones none the less), with some hassle/paperwork etc. if you get lease insurance to protect from unexpected charges at changing time or change the car prior to turn in, you should be fine too

[BavariaExclusive]

In NJ sales tax is prepaid when you sign the contract so I don't have to worry about that.

[BMWrules7]

Originally Posted by BavariaExclusive

Hello,

I'm willing to take over a seller's lease. He has put down $5000 MSD to keep his payments low. He said I will definitely get that deposit back at the end of the lease. He wants $5000 cash at the front of the lease.

Does any know anything about this? Will I get that deposit back?

I am pretty sure, not positive, that you lose the MSD if the car is totaled. If true, that's too risky. That like rolling the dice and if you win all you get is your bet.

[BavariaExclusive]

No thats when your insurance kicks in. MSD should be stated as refundable for it to be refunded on the contract.

[gehmjc21]

Originally Posted by BavariaExclusive

In NJ sales tax is prepaid when you sign the contract so I don't have to worry about that.

You're going to have to pay taxes again, even if the owner already did.

[BavariaExclusive]

I spoke to BMW. There is no taxes in monthly payments in Jersey.

[ezmaass]

Originally Posted by BavariaExclusive

At the end of the day. I pay no out of pocket+short term lease with low monthly payments.

Sorry, I just don't get this reasoning. No out of pocket expense? You're paying $4,000 out of pocket (to a stranger) and then another $1k in paperwork fees! And yes, you're getting a "short lease" but really what's the benefit of that? Maybe there's a personal benefit (you want to switch cars often?), but I don't see a financial one.

You've ignored the most important point I've continued to make, which is that you're OVERPAYING by assuming someone else's lease. A lease is no different than a purchase - except you're negotiating the sale, back to BMW, at the same time as you make the purchase. And you're agreeing upon the number of miles the car should have on it at the time of sale back to them. That's all.

By assuming someone else's lease, you're essentially continuing to value this car at it's original NEW purchase price. But it's no longer new. You're the second owner. The car should be valued as a USED CAR, and the lease price would otherwise reflect it for a second owner. Would you otherwise walk into a BMW dealership and say, "I'll pay you the same amount to lease a brand new car OR a used one... your choice"?? No, you wouldn't. But that's exactly what you're doing here.

You're the second owner of a used car, but you're paying lease prices as if it were a new one. Plus, you're conscious of not paying money "out of pocket" but you're putting up $4,000 (plus perhaps another $1,000 in paperwork fees) to make this deal happen... that's as much as $5,000 out of pocket. And you better hope there's no hidden damage on this car that you're not seeing prior to assuming the lease. You're going to pay some total stranger $4k and hope to recover his $5k deposit. But if you miss something while inspecting the car, you may be on the hook for damage you didn't do. So you're essentially willing to sign-off on the current state of the car, as if you were BMW or a proxy for them, and pay someone back their deposit... taking on the liability yourself. Sounds like a TV court case in the makings...

Are you getting a good deal? I doubt it. To really know, you'd have to go to BMW and have them quote you a lease on a USED car with the same specs. You can't compare it to new since it's not a new car. Then factor in $5k out of your pocket.

I'm just not seeing the financial upside of this deal... but if you insist, I wish you all the luck with it.

[BavariaExclusive]

Well the car only has 6k miles and carfax is clean. The MSD on contract shows as Refundable Security Deposit. Especially after confirming with BMW I'm definitely suppose to get that back. They said it can be paid to me by check or used towards my next purchase with them. Why would I be forced to think anything else of it? Payments are in the 600s and there is no monthly tax on the payment. I checked the car out and it looks in mint condition. If there is some hidden damage that the carfax didn't pick up or my visual inspection. Well that will be just some bad luck wouldn't it? In the end, I might just have to pay another 21k to buy the car out.
I personally like to lease cars. I don't want to be responsible for the full payment of the car. I just want to drive it and return it. I live in the city area so I might just not need a car for another year before I pick up another lease.