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      11-29-2012, 08:51 AM   #1
gehmjc21
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Arrow Possible 2012 650i x drive lease swap

Hey guys -

This is just an idea, but I'm thinking about switching over to a four door. I've only had my coupe for a few months, but it looks like my wife and I are going to try and start a family sooner than I orignally thought. With the current holiday incentives it looks welcoming, but I would have to find someone to transfer my current lease to. I've laid out all costs I paid and what it would cost for someone to get into a '13 with the same options, given what I put down on my '12. I'm sorry for the detailed info, let me know if anyone might be interested. Thank you!

2012 650i X drive-

Carbon Black Metallic
Black Nappa Leather
Gray Poplar Wood
Cold Weather Package
Full LEDs with 20"s
M Sport
B & O sound
Heads up Display
Instrument panel w/leather
BMW apps
ARS
Shadowline
Ceramic Control

MSRP - $106, 495
12,000 Miles a year - 36 Months
Lease started 7/1/2012
Currently 3,300 miles
Residual is $68,156
Total monthly payment = $889.14 (I paid tax upfront)

This is what I would be looking for to get out....

Lease fee $250 (I will pay $250 and split)
I paid $4868 in cap reduction ($135/m x 6 months(what I've used) = $810
Cap Reduction reimbursement $4000
I paid $3600 for 4 MSDs - this is returned at the end of the lease
I paid $2926 in taxes up front ($81/m x 6 months) = $486
Tax reimbursement $2250
I paid $725 for ED fee, $369 Doc fee, $350 for NYS reg fee. I will eat those.

Total out of pocket = $250+$4000+3600+2250= $10,100 ($3600 of which you'll get back)

Now to compare a '13 with the same options and putting down the same money....

2013 650i X drive
Cold weather
Executive package
Full LEDs
M Sport w/20s
B&O
ARS
MSRP= $108,095
57% residual for 36mos, 12k year
$3500 options credit
$700 loyalty credit
(Cap reduction $250+$4000 from above) $4250 + $600 (reduce MSD from above, 3600 to 3000. Use the 600 to get monthly pymt below 1000)
Tax payment from above $2250
MSDs from above $3600-600= $3000

Sale price $750 over US invoice = $99,895
Cap Reduction- $4850
Options credit + loyalty= $4,200
Net Cap = $90,845
Residual 57% = $108,095 x .57 = $61,614.15
Depreciation = Net Cap - Residual $29,230.85
Dep Cost = $29,830.85/36 = $811.97/mo
Net Cap + Residual = $152,459.15
Money Factor = .00135
3 MSDs = .00007 x 3 = .00021
Final MF = .00114
Finance pymt = $173.80
Total Monthly pymt before tax = $985.77

Tax on Final Pymt = $985.77 x 8% x 36mos = $2,839.02
Tax on Cap red/options credit = ($4850+4200) x 8% = 724.00
Total Tax = $3,563.02
Apply my tax payment above $2250
Remaining tax = $1,313.02

Cash Breakdown -
Cap Reduction - $4850
3 MSDs - $3000 (refundable)
Tax - $3563.02
1st payment - $985.77
Dealer Fees - $369
State reg - $350
Total Out of pocket = $13,117.79 ($3000 refundable)
Total Monthly Pymt = $985.77

Unless I'm missing something, the swap would be about $3k less upfront assuming you paid similar costs upfront and save about $100 a month. Thank you for looking.
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      11-29-2012, 04:35 PM   #2
m630
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With the situation that you can now get any 6er for close to 10K under sticker plus the winter credit of $3500, I dont see how you will be able to release this car under your defined terms. The only way you may move it is if you eat all of the money you've put down and just offer it to someone to take over the payments. It sux but its a buyers market.

these toys become money pits, especially if you need to get out early. Congrats on the family move though.


good luck
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      11-29-2012, 10:06 PM   #3
gehmjc21
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Quote:
Originally Posted by m630
With the situation that you can now get any 6er for close to 10K under sticker plus the winter credit of $3500, I dont see how you will be able to release this car under your defined terms. The only way you may move it is if you eat all of the money you've put down and just offer it to someone to take over the payments. It sux but its a buyers market.

these toys become money pits, especially if you need to get out early. Congrats on the family move though.


good luck
Hey m630, thank you for the congrats, that's more nerve racking than anything!

So here's where I'm having trouble. I show the numbers for a '13 just over US invoice with the year end option credits and the numbers are still more than what I'm offering. Am I missing something? Even if you take $10k off the price and put nothing down, you're looking at 1100-1200 a month. My situation pays upfront, rather than over three years. And still about $3k less in savings. I know it's a buyers market for sure, but I don't think it's totally unreasonable. Thanks for the input, if nothing else I makes me think all those calculations didn't go to waste
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      12-02-2012, 08:50 PM   #4
kgclark
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Not sure how you can expect to get re-imbursed for your prepaid tax. The person that takes over your lease is going to have to pay taxes again anyway.
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      12-04-2012, 12:10 PM   #5
gehmjc21
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Quote:
Originally Posted by kgclark View Post
Not sure how you can expect to get re-imbursed for your prepaid tax. The person that takes over your lease is going to have to pay taxes again anyway.
Hi Kg....I've never done this before and didn't know that. Are you sure that they have to pay taxes? I thought it was just a lease transfer?

It's nice to see some else from Syracuse on here though!
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      12-04-2012, 01:39 PM   #6
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Did you try to make a car switch straight at your dealer?
It might be the fastest option.
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      12-04-2012, 02:15 PM   #7
gehmjc21
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Quote:
Originally Posted by vladberca View Post
Did you try to make a car switch straight at your dealer?
It might be the fastest option.
I didn't even think of that. My guess is they would make me eat all my upfront cash I put in? Obviously I would have to pay taxes again and I understand that.

Have you ever heard of that?
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      12-07-2012, 03:50 PM   #8
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Quote:
Originally Posted by gehmjc21

Hi Kg....I've never done this before and didn't know that. Are you sure that they have to pay taxes? I thought it was just a lease transfer?

It's nice to see some else from Syracuse on here though!
Not sure about other states, but in NY, you have to pay upfront sales tax (8% here ) on the total of all remaining lease payments when you register the car.
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      12-07-2012, 03:58 PM   #9
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Quote:
Originally Posted by gehmjc21

I didn't even think of that. My guess is they would make me eat all my upfront cash I put in? Obviously I would have to pay taxes again and I understand that.

Have you ever heard of that?
Trading in a lease is just like a regular trade-in. BMW financial should be able to give you a current pay-off quote (non-negotiable). The dealer will give you an offer for your trade-in (always negotiable) and if the dealer offer is lower than the payoff, you have to pay the difference (or are entitled to cash back if its the other way around).

Alternatively, you could sell the car privately the same way.
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      01-17-2013, 12:03 PM   #10
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Quote:
Originally Posted by gehmjc21 View Post
I didn't even think of that. My guess is they would make me eat all my upfront cash I put in? Obviously I would have to pay taxes again and I understand that.

Have you ever heard of that?
If you transfer the car to any other NY resident, then they dont pay tax. Everyone else will get hit with tax by their home state. If you rereg the car in any state after 6 months you get credit for tax paid, but thats just you, not whomever you transfer to.
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