Quote:
Originally Posted by King Spew
Seems like a good thread to post this.
Leased an i3 BMW in September 2017; three year. I DO NOT need this car as I have a Suburban for me and a 328d for my wife (both paid for)
Fast forward to today with life changes have us moving to the mountains of Colorado. Small electric cars don't fair well in (1) the cold and more importantly (2) on snow/ice covered roads. 6 months a year imo in CO.
I haven't read all my contract yet....but basically turning in the i3 early (May) will cost me over $6.5K
Option might be to "upgrade" to a better BMW snow car (X3). If that can be managed in a year lease for under the 6.5K....sounds like the best use of money.
Thoughts?
Help!
Unfortunately, w 36 as standard term lease and 24 mos being the shortest term possible w most manufactures, there’d be no way to pull it off. The day you drive off the lot w a new X3, it could lose 5k+ of its value and the sticker shock of a 1 yr lease is why they are discouraged or not an option, except maybe for wealthy individuals in the country for a limited time, who need a car and dgaf about the price. Exotics seem to offer more of these spots.
There’s only two ways I can think of recouping some or all of the early termination fee, depending on your needs wrt the 3rd car: if you would like to lease an X3 for full 36 mo term, you could trade in your I3. The process is only slightly more complicated than if you traded in the Suburban, but it takes an extra step to ensure you are getting max trade in value. You have leverage bc you’re giving them an opportunity to write a deal. Obv don’t wanna come off desperate - just tell them you’re thinking about it - they should go right into dealmaling mode.
They would appraise the I3 and compare that against their cost to buy it out and you would either have some equity towards a new lease (some of which they would try to take as profit), or you wouldn’t. The only way to determine whether you have equity is to get the best price on the phone for the exact same lease from a couple stores. If the dealer taking the I3 in trade is willing to beat those numbers by a decent margin, you have equity. Best case scenario, you get out of your unwanted lease and into the X3 you want, for cheaper than if you turned it in and then leased the X3, in separate transactions.
The other option is prob more likely to yield a financial gain, but it takes some patience. Assuming you’re way under the mileage, you could finish the lease, but barely put any miles on it. Then, you do a lease buy out, receive title, and sell the I3 w 17k miles (or however many it has), private party, or directly to a bmw store. First, you would want to check what your I3 is selling for. If the lease end buyout price is lower than the market value by 6.5k, you will have access to the I3 for the full term and neutralized the fee (before taking into account the insurance, excise fees, etc).
Both spots require a knowledge of what the I3’s value is, or will be. So there’s some risk you could cost yourself more than the fee if you botch your appraisal. The simplest of the two options is the former bc it’s more easily verifiable whether or not you’re saving money. But if you have no need for a 3rd car then it’s not really an option. My guess is that bc BMW depreciates faster than most brands, you won’t really have much equity in either case. Gl