Lease down payment?

[F80NJM3]

So someone wants out of an m3 lease. Monthly payment is $599.00 for nicely loaded 2011 jerez black.
However, they want $13,000 down for the car. 34 months left on the lease. Residual is $46,000. So when you put everything together at the end of the day, we are talking $77,xxx for the m3.. used m3.

Any thoughts?

P.s Personally, no way in hell would I put down 13gs for a NEW lease, let alone for a used one.

[Vudoo4u2]

Never put anything down on any lease

Simply have BMW switch the lease over to your name (they allow lease assumption/transfer)

This will absolve the original lessee of their obligation, and it will be you on the documentation.

Better for you, better for him

(there might be some lease transfer fee, it is not particularly large from my recollection, just paperwork)

[BMWFanboy]

I saw the same car. He wants the money because he put that down as cap cost reduction when he leased the car to reduce his payments. If you do that math you are going to pay around $981/month factoring in the downpayment. There are plenty of cars available for lease assumption that you can get for less with no downpayment. Furthermore, if you have 2011s available in your area you can get much lower.

[Its_lobelt]

That's his problem for putting that much down on a lease. I say you offer him 2-3K cash and take over the payments. I think the fee for the paperwork is somewhere in the neighborhood of $500. Not sure though. But 13K is just a stupid amount to put down on a lease.

[F80NJM3]

Originally Posted by ROB_S2K

That's his problem for putting that much down on a lease. I say you offer him 2-3K cash and take over the payments. I think the fee for the paperwork is somewhere in the neighborhood of $500. Not sure though. But 13K is just a stupid amount to put down on a lease.

Exactly my point. The seller wants to get all the money back that they put down for an initial down payment.
That's not a buyers problem. We all know what happens to the value of the car as soon as it leaves the lot.
To assume that lease payment I would even consider 5K (I know I know).

Oh well, hopefully they will come to their senses, in the meantime the car will sit, collecting dust.

[SROC3]

Originally Posted by blackonred3series

Exactly my point. The seller wants to get all the money back that they put down for an initial down payment.
That's not a buyers problem. We all know what happens to the value of the car as soon as it leaves the lot.
To assume that lease payment I would even consider 5K (I know I know).

Oh well, hopefully they will come to their senses, in the meantime the car will sit, collecting dust.

13K down is ridiculous. Anything above 1K for a lease assumption is ridiculous. I say wait till they go to $1,500 max if you REALLY want the car

[dagolfpro]

From my experience, some sellers have unrealistic expectations on their leased vehicles. I saw one and his payment is $1100 plus and still have 30 months left with a residual of $44,000. That puts the car value over $76,000 if you want to buy that car at the end of the lease. They offered $1500 as an incentive but let's be realistic here, you drove the car for 6 months and now you want someone else to take the hit? New car leases are less plus you get to drive a new car. I think it's the psychology of having to come up with more money to get out of the lease then losing money on a car you already have paid for. Meaning, buy a car for $75k and then sell it later for $65K, they feel they are still getting $65k back, even thought they lost $10k in 6 months due to depreciation. As opposed to drive a $75k car on a lease and paying $6k in lease payments and then having to cough up another $4k in incentives to pay someone to take over the lease. Bottom line, $10k loss in both scenarios but I think people would have a harder time dealing with the 2nd scenario.

blackonred3series, your situation is like scenario #1 as he's already paid the extra $13k and wants to recover some of it. It's his right to ask and your right to refuse and let the negotiations BEGIN!

[edgar]

never down payment!

[dagolfpro]

Originally Posted by edgar

never down payment!

You're right if you are thinking cap reduction, but if you're paying the extra MSD, it's almost a sin not to. I'm looking to put down $6300 in MSD which will save me $55/month. That's $650 savings/year on a $6300 investment which I'll receive back at the end of the lease. I know my bank can't save me 10% on my investment.

[F80NJM3]

Originally Posted by dagolfpro

You're right if you are thinking cap reduction, but if you're paying the extra MSD, it's almost a sin not to. I'm looking to put down $6300 in MSD which will save me $55/month. That's $650 savings/year on a $6300 investment which I'll receive back at the end of the lease. I know my bank can't save me 10% on my investment.

Now the seller is asking $11,500 as "down payment". The car has been sitting for 2 months.
I don't see this car moving anytime soon..