# Early lease return to get new BMW Lease



## netdoc (Apr 7, 2005)

I am currently leasing a 2005 530i from BMW Financial for the past 18 months and I still have another 18 months to go...

I want to lease a new X5 now, will they still charge me penalties for early return, even though I am gettin a new lease from them on a BMW?


----------



## Rubber Ducky (Feb 27, 2004)

netdoc said:


> I am currently leasing a 2005 530i from BMW Financial for the past 18 months and I still have another 18 months to go...
> 
> I want to lease a new X5 now, will they still charge me penalties for early return, even though I am gettin a new lease from them on a BMW?


In a simple phrase: you're screwed. Lease is full-pull, unless you can dispose of it to another individual. Best way to understand your situation is to read your lease contract very carefully. There is no economical way to exit a lease early short of pranging the car and having it declared totaled - I do not advise that.


----------



## ///M Rakete (Apr 1, 2002)

Yes. The back of your lease agreement outlines the early termination costs. Essentially your current car will be valued as if it were a wholesale trade which means you would be upside down and owe the balance of the book (depreciated per the lease) value minus the vehicle's actual determined value. You might fare better by actually trading the car in although you'll still eat some of it. There is no consideration given for leasing another BMW through BMWFS a this point. Sometimes, as you approach your lease termination, BMW will have a "pull-ahead" program that will allow you an early penalty-free exit in order to get you into a new BMW, and thus allow them to book a sale.


----------



## mclaren (Jan 5, 2005)

netdoc said:


> I am currently leasing a 2005 530i from BMW Financial for the past 18 months and I still have another 18 months to go...
> 
> I want to lease a new X5 now, will they still charge me penalties for early return, even though I am gettin a new lease from them on a BMW?


In June of this year I was in a similar boat. I was 18 months into a 36 month lease of a 325i. I wanted a z4 3.0si. No problem, I took my 325i in, they bought it, and I leased the z4. They said the car had negative equity of $1500 so I paid around $1,000 more for the z4 then I would have normally but the lease money factor was so low I still felt good about the deal and I love the z4.:thumbup:


----------



## SignHere (Apr 26, 2006)

A lease is an agreement to use someone else's property for a specified time and a specified dollar amount. It's only fair that if one of you wants to break the agreement that the other be compensated.

You will find that BMW FS offers at different times of the year and on different models, an early termination program that will allow them to waive up to 3 of your last payments when leasing a new BMW. I just did this for a customer on a 2003 5 Series going into a new 3 Series. It saved him almost $2000. Wait a little and you may benefit from a program like this and the X5 fervor may have cooled so you can get a better deal as well.


----------



## netdoc (Apr 7, 2005)

*Thanks everyone... lets see what I can do...*


----------



## minimal (Jun 11, 2007)

SignHere said:


> A lease is an agreement to use someone else's property for a specified time and a specified dollar amount.


If it is someone else's property, then why do I have to pay the property tax??? This is my first lease and this fact really burns me! If I don't own it, why should I pay property tax on it?


----------



## caveatesq (Jun 23, 2005)

minimal said:


> If it is someone else's property, then why do I have to pay the property tax??? This is my first lease and this fact really burns me! If I don't own it, why should I pay property tax on it?


Why shouldn't you reimburse the leasing company for the tax? You caused the property to be registered in a state that charges a property tax.


----------



## minimal (Jun 11, 2007)

caveatesq said:


> Why shouldn't you reimburse the leasing company for the tax? You caused the property to be registered in a state that charges a property tax.


The dealer is in the state and owns the car. Why shouldn't they pay the property tax? It is their property after all. When I rent a house, the owner pays the taxes. Same for other rental items. Property tax is supposed to be charged on what you OWN, not what you rent.


----------



## LI E90 (Apr 9, 2007)

netdoc said:


> I am currently leasing a 2005 530i from BMW Financial for the past 18 months and I still have another 18 months to go...
> 
> I want to lease a new X5 now, will they still charge me penalties for early return, even though I am gettin a new lease from them on a BMW?[/QUOTE
> 
> put it on swapalease


----------



## caveatesq (Jun 23, 2005)

minimal said:


> The dealer is in the state and owns the car. Why shouldn't they pay the property tax? It is their property after all. When I rent a house, the owner pays the taxes. Same for other rental items. Property tax is supposed to be charged on what you OWN, not what you rent.


The dealer does not own the car. Its owned by the leasing company (likely BMWFS) that, in most cases, is located outside of your state. It is very naive to believe that you are not paying the real estate taxes when you rent a house - you most certainly are, they are just factored into your monthly rental payment. The only difference with your rented car is that the lease agreement requires you to reimburse the leasing company for the property tax at the time it becomes due, rather than paying it in monthly installments over the course of the lease.

Let me guess, the leasing company should be paying to insure and maintain your car, as well - after all, they own it. Great logic :thumbup:


----------



## SignHere (Apr 26, 2006)

minimal said:


> If it is someone else's property, then why do I have to pay the property tax??? This is my first lease and this fact really burns me! If I don't own it, why should I pay property tax on it?


You are assigned the responsibility of paying the property tax (As well as other taxes and government fees) in the lease contract. It is just an expense of the agreement that must be factored in when weighing the decision to lease.


----------



## vitaly (May 11, 2007)

netdoc said:


> I am currently leasing a 2005 530i from BMW Financial for the past 18 months and I still have another 18 months to go...
> 
> I want to lease a new X5 now, will they still charge me penalties for early return, even though I am gettin a new lease from them on a BMW?


why don't you post it on:

www.leasetrader.com
www.swapalease.com

good chance somebody will take over your lease


----------

