[freeewilly]

I paid my lease payments ahead of time, so I don't have to worry about the lease payments until my 39 months lease is up. My monthly statement shows I have a (-) balance.

At 36 months, BMW sent me a flyer that they will wave the last 3 payments if I lease another BMW. After I spent hours of time looking and negotiating for the new BMW, we found out I'm not qualified because I paid my current lease in full. BMW will NOT refund nor transfer my current lease balance to the new car.

I was shocked and feel unbelievable, why BMW financial screw customers that paid ahead.

I went home and read the flyer again, BMW did mention the rules in the fine print.

[TJBentley]

Originally Posted by freeewilly

I paid my lease payments ahead of time, so I don't have to worry about the lease payments until my 39 months lease is up. My monthly statement shows I have a (-) balance.

At 36 months, BMW sent me a flyer that they will wave the last 3 payments if I lease another BMW. After I spent hours of time looking and negotiating for the new BMW, we found out I'm not qualified because I paid my current lease in full. BMW will NOT refund nor transfer my current lease balance to the new car.

I was shocked and feel unbelievable, why BMW financial screw customers that paid ahead.

I went home and read the flyer again, BMW did mention the rules in the fine print.

Wow man I feel for you, that sucks big time. Lesson learned I guess for next time

[BigKutta]

Originally Posted by freeewilly

I paid my lease payments ahead of time, so I don't have to worry about the lease payments until my 39 months lease is up. My monthly statement shows I have a (-) balance.

At 36 months, BMW sent me a flyer that they will wave the last 3 payments if I lease another BMW. After I spent hours of time looking and negotiating for the new BMW, we found out I'm not qualified because I paid my current lease in full. BMW will NOT refund nor transfer my current lease balance to the new car.

I was shocked and feel unbelievable, why BMW financial screw customers that paid ahead.

I went home and read the flyer again, BMW did mention the rules in the fine print.

Yes, never prepay anything, especially a lease. A car loan I understand, but a lease you never prepay.

[gatorfast]

Forgive my ignorance, but by prepaying don't you also run the risk of an insurance loss should you total the car before the end of your lease?

[freeewilly]

I was shopping for a house mortgage 18 months ago, car lease payment hurt my income to debt ratio greatly. I decided to payoff my lease payments in advance and show the lender I have no more debt. I knew the risk of an insurance loss, but don't know I will miss the chance to waive the last 3 payments. It's not the end of the world, just want to share my experience with everyone.

I got the house, and I just lease a new i3 today. I guess it's happy ending.

[hawkjr1]

So they were willing to let you out of your lease 3 months early. Hope they send me one of those filers, got 6 months left. Looking to get an alpine white M Sport 528i.

[493263]

Originally Posted by gatorfast

Forgive my ignorance, but by prepaying don't you also run the risk of an insurance loss should you total the car before the end of your lease?

Yes, insurance (w/ GAP or without) will only pay up to what you owe. So you're SOL if you prepay. You should NEVER prepay more than a month ahead for cars unless you are buying instead of leasing and your APR is under 3%. If you have the money, just put it in a CD or whatever safe investment vehicle, and collect the same interest or higher.

If you have GAP insurance and you prepay, then it's really dumb.

There's no point in prepaying for a lease either. It's not going to save you any significant money. The interest is based on the entire car's price while you're only paying off a small portion that is considered depreciation.

[BMWrules7]

Originally Posted by 493263

Yes, insurance (w/ GAP or without) will only pay up to what you owe. So you're SOL if you prepay. You should NEVER prepay more than a month ahead for cars unless you are buying instead of leasing and your APR is under 3%. If you have the money, just put it in a CD or whatever safe investment vehicle, and collect the same interest or higher.

If you have GAP insurance and you prepay, then it's really dumb.

There's no point in prepaying for a lease either. It's not going to save you any significant money. The interest is based on the entire car's price while you're only paying off a small portion that is considered depreciation.

Agree. No point in pre paying. Unless, you need to get the debt out of your portfolio.

In that case, prepay everything but three months.

[493263]

I haven't seen a situation where I need the debt out of my portfolio short of moving overseas.

I can see some people buying a house and wants to lower their debt/income ratio. But instead of paying it off, keep that cash in your checking account and it will help you more.

Wait...I remember...divorce lol.

[freeewilly]

Originally Posted by hawkjr1

So they were willing to let you out of your lease 3 months early. Hope they send me one of those filers, got 6 months left. Looking to get an alpine white M Sport 528i.

This is what I received.

[Bmw doubles]

Time for a Mercedes C63 and see if they're willing to lose you as a customer.

[chrisny]

Originally Posted by BigKutta

Yes, never prepay anything, especially a lease. A car loan I understand, but a lease you never prepay.

+1.

But at the same time, shame on BMW. The point of the promotion was to get you in another BMW. They should honor that intention and add the difference (your last 3 prepaid payments) as a credit on your next car.

[PhantomCypher]

Originally Posted by Bmw doubles

Time for a Mercedes C63 and see if they're willing to lose you as a customer.

Yea once he goes and sees the monthly lease payment on the C63 - he will be coming back crawling on his hands and knees to BMW for a cheaper payment.

[Bmw doubles]

Originally Posted by PhantomCypher

Yea once he goes and sees the monthly lease payment on the C63 - he will be coming back crawling on his hands and knees to BMW for a cheaper payment.

Though the new c450 is no joke and affordable. Not a fan of their transmissions though.