# Early Lease Termination Penalties



## Case (Apr 11, 2002)

The wife and I just learned we are pregnant with twins. :yikes: The 325ci isn't going to be too practical and the budget would really look better with lower payments. Does anyone know what type of penalties there are for terminating early? I've had it for almost a year, and have only 5500 miles on it. On a trade in I'm looking at a 5-6k loss on what the payoff is, $30k for payoff. I put it in the paper for 31,5 but no bites yet.


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## dlubin (Dec 22, 2002)

*Penalties*

Congratulations on the twins!

As far as the lease goes, as I understand it you have three options:

1. Pay all of the remaining payments and turn the car in.
2. Pay the difference between 'wholesale' (they'll inspect it) and your payoff.
3. Sell it and pay it off.
4. Use a forum like swapalease.com to get someone to take over your lease.

No easy way out I'm afraid...

Dan


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## SARAFIL (Feb 19, 2003)

*Re: Penalties*



dlubin said:


> *4. Use a forum like swapalease.com to get someone to take over your lease.
> *


Watch out for that- you are 100% liable for the car until the end of the lease term. If the person that you transfer the lease to defaults on it, BMW will still come after you as the original leasee.

I would never choose this option unless the person I was transfering the lease to was a family member or very good friend. Its too much of a risk in any other case.


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## Case (Apr 11, 2002)

I checked out lease swapping and decided against it for exactly that reason. Too risky. I know I'm going to end up taking a hit, but just trying to find the lesser evil.
For example I know I'm out 6k for a trade in. Say the penalty is 4k for early termination. (Have no idea). Then I know if I sell the car on my own for 2k under what I owe, that I've done the best that I can do.
But I can't seem to find how they calculate the cost: 2k + .20 per mile? Don't know.
Been waiting to hear from BMW Financial for a week now.


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## Matthew330Ci (Sep 9, 2002)

i remember jon saying that on bmw leases, you can just pay the early termination fee (something like $400-500) and just walk away? :dunno:


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## Case (Apr 11, 2002)

Finally heard back from BMW Financial. Besides the option of paying off the car, which I already knew. They are giving me the option of paying off the remaining payments 26 payments x 511.23 + 350.00 termination fee = 13,533.83!!! If I'm going to be making the 26 payments anyway, then I would want to turn in the car. What kind of option is this? Sounds crazy to me. Oh well this is definately not an option for me. :thumbdwn:


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## Saintor (Dec 14, 2002)

Why don't you just keep your car? 

They are hundreds thousands of 2-children families with cars sized like a 3-series. 

In the sixties, my father bought a brand new Thunderbird 1967 2 doors and we were 5 children! My brother bought a Pontiac Grand Prix Coupe back in 1989 with his two low-aged children.

It is not that bad. :thumbup: 

I don't know if you are aiming at minivan, but I am always amazed by people who rush on them as must-have as soon as they get their first child. :dunno:


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## Case (Apr 11, 2002)

Just say "No" to minivans! The fact that the car only has 2 doors only makes it a little less practical, but as you mentioned it is still possible to cart two little ones around. I was trying to accomplish two goals. 1) find a car that it would be easier to get the little ones in and out of 2) decrease my monthly auto and insurance payment.
The only option right now that makes any type of sense is to sell it out right. If that doesn't work then I'm definately keeping it.


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## SchwartzBlack (Jan 4, 2002)

I have a newborn and a 325Ci. I had to try out a number of different infant seats before I found one that fit but the one I got fits great. Putting the seat in is very easy, taking it out is a little more troublesome. The front seat has to be moved 1-2 clicks forward to accomodate the infant seat in the rear. The way I see it, the main problem has nothing to do with the coupe: any stroller (except a Snap-N-Go) will take up all the space in the trunk. But this is true on both the coupe and sedan. 

I can post some pictures if you're interested.

That said, I'm looking at buying a 2nd car (4-door). Looking at either a 97-98 Infiniti I30 or a Mazda6.


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## Case (Apr 11, 2002)

SchwartzBlack - Snap-and-Go? Is that the carseats that fit into the stroller. Sorry, this is all new to me. Are you saying that those systems don't fit well? Do you remember what infant seat ended up fitting the best? Would love the pics. Thanks for your help.


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## SchwartzBlack (Jan 4, 2002)

The infant seat that fit best was the Baby Trend Latch Loc. See Latch Loc. The base locks into the Latch attachments in your car very securely. The attachments are solid steel shanks instead of flimsy belts. And the base is built like a tank. The infant seat drops into the base which is permanently affixed in the car. I'll take a picture of it in the car when I head out later.

The Snap N Go is a foldable stroller that folds completely flat and takes very little room. A good friend of mine is having twins in a month and they bought the Snap N Go double which fits 2 infant car seats. So you extract the 2 infant carrier/seats from their respective car bases and drop them into the Snap N Go. See this picture The Snap N Go will easily fit in the trunk and still have room for your stuff. A traditional double baby stroller will not fit in the 3-series trunk. The drawback of the Snap N Go is that they only last until the baby outgrows the infant seat (when they're about 20lbs) After that you gotta get a regular stroller, so I decided to get a regular stroller.

I hope that helps.


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## Case (Apr 11, 2002)

Thanks :thumbup: I really appreciate the info definately helps, and I'll be waiting for those pics.  Thanks again.


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## SARAFIL (Feb 19, 2003)

Case said:


> *Just say "No" to minivans! The fact that the car only has 2 doors only makes it a little less practical, but as you mentioned it is still possible to cart two little ones around. I was trying to accomplish two goals. 1) find a car that it would be easier to get the little ones in and out of 2) decrease my monthly auto and insurance payment.
> The only option right now that makes any type of sense is to sell it out right. If that doesn't work then I'm definately keeping it. *


There are some killer deals on the sedans these days. I have a feeling if you go to a good BMW dealer and let them know your situation, they will offer you a better deal than you could get anywhere else knowing that you are getting another BMW.

If you are $5k in the red on this one, they definately can't make that all disappear, but with a good price on the new car and a fair trade in price on the coupe, they can take a good portion of the burden away.

Just another option to consider.


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## SchwartzBlack (Jan 4, 2002)

Here are the infant seat pictures .... they're not very clear cos the lighting is bad in the garage


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## Case (Apr 11, 2002)

Thanks :thumbup:
I think the wife and I are going window shopping/pricing car seats/travel systems tonight.
Thanks again.


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## mbr129 (Aug 23, 2002)

Getting rid of a lease sucks. But sometimes it is still worth it. 

My fiancee had a leased 2000 Beetle and then she decided to go to law school, so she didn't need it anymore (she takes the T). She found a guy willing to buy it. She basically paid teh car off and sold it. She lost $1500 on the move, but it was still better than paying $400 a month (car + insurance) on a car she woudn't use for another 20 months. 

In your case I would keep the lease because you actually need a car. Paying a penalty for a swap isn't worth it. I agree that a coupe is a pain for kids, but the E46 is relatively roomy and it can be done. Plus, it's a great car.


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