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      11-21-2012, 01:49 PM   #1
NiceNotRiceBMW
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Anyway to refinance a lease?

I should start by saying that I am only 19 years old... I work full time as a photographer, and can afford my car. HOWEVER, I want to know if there is anyway to refinance a lease? I currently am getting screwed after looking around and researching forums. I have a 12' 328i sport line.
Black leather w/ red stitching
Red accents
Cold weather package
Premium package
Msrp: $43,000

Paid $4,000 down.
$597 per month.
12 k per year
I had a cosigner(thinking it would give me a better lease rate)

Anyone with any ideas?
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      11-21-2012, 06:30 PM   #2
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Quote:
Originally Posted by NiceNotRiceBMW View Post
I should start by saying that I am only 19 years old... I work full time as a photographer, and can afford my car. HOWEVER, I want to know if there is anyway to refinance a lease? I currently am getting screwed after looking around and researching forums. I have a 12' 328i sport line.
Black leather w/ red stitching
Red accents
Cold weather package
Premium package
Msrp: $43,000

Paid $4,000 down.
$597 per month.
12 k per year
I had a cosigner(thinking it would give me a better lease rate)

Anyone with any ideas?
You can always refiance your car as a loan and not a lease
Just go to a bank and let them know you want to refinance the payoff amount on your lease, and based on your credit (which should've improved by making loan payments on time) and I'm sure your interest rate will go down. If not, ask a cosigner again and shop around the banks to see what your best rate is. If you need extra help, pm me and I'll help as much as I can as I'm in the banking industry
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      11-21-2012, 11:51 PM   #3
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That is definitely high, which should mean your payoff amount may not be terrible. I would look into that as g2g said. Honestly, a purchase payment on a car with an msrp of 43k with 4 grand down shouldn't be much more than you're paying now.

What was the discounted price the lease was based on? Your lease payment should probably be more like the 500-550 range.
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      11-22-2012, 01:07 PM   #4
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Unfortunately once you signed the paperwork with BMW FS saying you agreed to the terms, you were stuck with those.

Paying the car off in full and taking out a loan really isn't a great idea either. You'll probably keep a similar monthly payment, but depending on your payoff amount you'll most likely now be stretching out that payment for an additional 5 years.

With that amount down up front you probably should have been closer to the low $400/month. I'm guessing you ended up paying the full MSRP for the car, all of the fees, and had them bump up the money factor/interest rate on top of that. (Not sure what the money factor was when you bought your car).

You're probably stuck in the situation, you're young enough where you can use this as motivation for understanding all the lease terms for the next round.
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      11-22-2012, 01:16 PM   #5
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Yes the deal sucks but your stuck with what you have, Be thankful its only 3 years not a 5-6 year loan. I've bought a few cars at impulse buys and all i can say is go home and sleep on it after and work the numbers out and research.
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      11-22-2012, 02:06 PM   #6
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      11-22-2012, 04:16 PM   #7
NiceNotRiceBMW
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I appreciate everyone's help. I should also note that one of the main reasons I agreed to the terms of the lease was that the financial advisor at the dealership said that in a year of my original leases date, I would be able to renegotiate my lease.(for lower payments) I'm not sure how this works or if this is common. This is why I'm reaching out for everyone's ideas and advice.
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      11-22-2012, 10:05 PM   #8
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Quote:
Originally Posted by NiceNotRiceBMW View Post
I appreciate everyone's help. I should also note that one of the main reasons I agreed to the terms of the lease was that the financial advisor at the dealership said that in a year of my original leases date, I would be able to renegotiate my lease.(for lower payments) I'm not sure how this works or if this is common. This is why I'm reaching out for everyone's ideas and advice.
I hope you got a signed statement by that salesmen lol.
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      11-22-2012, 11:12 PM   #9
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If you refinance as a purchase, and assuming you get a good rate, you can always trade it in on a much better deal. I would do that, rather than pay this ridiculous lease payment. At least you will gain equity...especially since the 328 will hold its value relatively well after the 1st 2 years.
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      11-23-2012, 12:50 AM   #10
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Quote:
Originally Posted by NiceNotRiceBMW View Post
I should start by saying that I am only 19 years old... I work full time as a photographer, and can afford my car. HOWEVER, I want to know if there is anyway to refinance a lease? I currently am getting screwed after looking around and researching forums. I have a 12' 328i sport line.
Black leather w/ red stitching
Red accents
Cold weather package
Premium package
Msrp: $43,000

Paid $4,000 down.
$597 per month.
12 k per year
I had a cosigner(thinking it would give me a better lease rate)

Anyone with any ideas?
Unfortunately you are paying a LOT for that least.
WAY too much for putting down 4k.

Did the 4k include your lease acquisition and 1st months payment?

Post the actual numbers.
MSRP
Actual selling price
Length of lease, years and mileage
Depreciation percentage/residual
MF-money factor
Doc fee
Any other fees
Also, in your state do you pay tax on the full selling price or just on the monthly payments? This makes a big difference in monthly payments.

In my state we only pay tax on the monthly payment not the whole selling price.
In my lease I also had the 1K money from the BMW test drive event, $750 loyalty money, and $350 from the BMW "drive" download app. The 350 goes towards the 1st monthly payment.
I got lucky because the finance person actually applied the 350 towards the lease down payment. It resulted in a couple dollars less per month on the payment.

I also did the "multiple security payment" plan, where BMWFS will discount the MF for every additional security payment you give them. You can put down a total of 7 of them. With 7 MSD's the money factor drops almost a percentage point, but not quite a whole percent.
You get the deposits back at the end of the lease.

My 335i Msport had an MSRP of $52K. I got a $500 above invoice deal.
3yrs/10K per year.
With all the discounts and multiple security deposits my monthly payment is $511. A very good lease deal.

You can't change your lease unfortunately.
I also haven't heard that you can do a new lease after the 1st year, but BMW does change things, and maybe they do offer it.
If they do, then there's your chance to change.
But, maybe the sales person means that you can bring your lease back early and then release the car, which would mean you're leasing a used car.
The MF and residual may be higher and the monthly payment may not change much and they'll lock you in for another 3 years. Make sure that doesn't happen.

Your other option is to make the payments for a year and improve your credit score. Then you may qualify for a low interest rate loan from a bank, or maybe from BMW. You can then purchase your car for the pay off amount at that time. Let's say the pay off is $32K. You would then be buying the car for $32K. Get a loan from the bank and pay it off. A one year old car should qualify for a 6yr loan, which would give you a loan payment that may be lower than what you have now.
You wouldn't have to take 6yrs to pay if off if you don't want to, you can pay if off sooner. Also, if you decide to sell the car after 4yrs, you can do that do, if the selling price is higher than what you owe. That way you're out of the car and financial responsibility after 4yrs, and you can move on from there.

It's good to learn. Let this be a learning experience. Next time do more research. Come to this type of forum before you buy so that those with experience can help you out and give you advice and numbers to help you get the best deal.
Good luck.
You may be paying a bit too much, but at least you've got a sweet automobile to enjoy and soften the blow.
Enjoy it.
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