Automotive

Lease take-over advice

  • Last Updated:
  • Nov 9th, 2018 11:49 am
[OP]
Newbie
Nov 16, 2015
29 posts
6 upvotes
Port Moody, BC

Lease take-over advice

Hi All,
I was looking for a car and was thinking about many things, and came up with a plan for taking over the lease.
This is something I found, and want to ask professionals/experienced people here for the advice.
It is 2018 BMW 230i X drive, M Sport Package – Automatic.
Mileage Allowance: 12,000km per year
No charge, scheduled maintenance 4yrs/80k
It was on 48 months lease and it’s been 10 months so far.
The lease price is 535+tax.
When I try the comparison from BMW website by building a new one, and compared.
The monthly payment doesn’t seem to be bad.
My usage on the car is usually a short trip on couple of days after work on the weekdays and over the weekend
Any advice on this?
Thanks all,
7 replies
Deal Expert
User avatar
Jul 30, 2007
27585 posts
12660 upvotes
Toronto
Rules:
Get carproof report
Get all service record
Get copy of lease agreement (to see all financial details and what’s behind the calculated payment)
Does lease has any excess wear protection?
Who is paying for lease transfer?
Who is paying for vehicle inspection prior to takeover?
What incentive is being offered by current owner ?
Get quote for insurance cost (if you are concerned)
Who is responsible for next payment? Or is it pro-rated ?

Once you have all the above info., then take a test drive to determine if car meets your need.

If yes, then proceed with real negotiation to get the deal done
Deal Expert
Mar 23, 2004
27422 posts
7741 upvotes
BLENZv wrote: It was on 48 months lease and it’s been 10 months so far.
The lease price is 535+tax.
When I try the comparison from BMW website by building a new one, and compared.
The monthly payment doesn’t seem to be bad.
One thing I would caution against--do NOT compare this price to what you get on the website builder. Cars never sell for MSRP (unless they are limited production models, exotics, etc.) in reality, so what the website builder spits out is not realistic.

Go down to your local BMW stealer and price out a new one and see what they can give you on a lease. Sometimes you'll be surprised at how much less it is than the "online builder". You may be able to get a new one leased at around the same price without having to worry about any issues or take any risk (though these chances are relatively small on a lease takover, they are still there). You would have a longer term though but it depends on whether you're only looking for a car for 38 months or if you don't mind getting one for a full lease term.

Years ago, when I was always looking into lease takeover deals, I quickly found out some things:
-The good lease takeovers are gone very quickly--people will snap these up in no time. If the car has been listed on lease takeover for more than a month, it's probably not a great deal and you could probably get the same car leased, new at a stealer, for around the same (if not better).
-The lease takeovers that aren't so great, the lessees will have listed for a while will eventually add in (or increase) the cash incentive payment they are giving to you in order to "sell" the car. So a mediocre takeover deal can turn into a good one if you wait it out and their need to get rid of the lease increases.

Typical "good" lease takeovers usually look like this:
-Cash bonus/incentive paid to you for takeover.
-Instead of cash bonus (or in addition to) the original lessee made a downpayment on the lease which they are giving the benefit of, to you. (i.e. not asking for money for the lease takeover)
-Security deposit signed over (meaning at lease-end you get the original security deposit the buyer put in)
-Original lessee got a decent discount on the car at lease inception (i.e. they didn't do something dumb like lease at or near MSRP)

Anyway I recommend you take a trip to a Bimmer stealer and see what's up. If you can get one close to that price then I'd say why bother with one that's 10 months old, unless you want 10 months less of lease time? If the pricing is way higher OTOH, then you should probably make sure the car checks out and snap it up quick because trust me it'll be gone pretty quick otherwise. As said back when I actually was looking to do the same, all the ppl I called/emailed that had cars up with good offers, they were already taken over by the time I contacted them.
Deal Guru
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Jul 12, 2003
11197 posts
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Toronto
Awesome reply by bobblehead and ES_Revenge. Great info and advice on this topic.
Retired Forum Moderator February 2009 - June 2015
Deal Addict
Nov 8, 2017
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OP: what's the current mileage?
Deal Expert
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Jul 30, 2007
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compare to the same car if you are to go out today and get one on lease

MY2018 - base + Mperformance - MSRP $44,600 *
48 months term
0.9% interest rate
20,000km per year
45% residual
$0 down
$3600 fees rolled into payment (extra dealer fees in BC)
No bogus items wanted / added on
No excess wear protection plan is selected

$1000 factory credit (Nov 2018)
say 7.25% dealer side discount (MY2019 is already here and selling, therefore, dealer will need to clear the MY2018 fast)

Projected monthly payment - $521.80 + HST // If you want excess protection plan added ... then it's $551.60 + HST
Due on delivery - first + security + license admin fee + new plate (if required)

* Note: Not sure what other options you have not disclosed on the orig. post on this takeover car. Feel free to update it so I can compare "Apple to Apple" of the final figures for you to evaluate.
Deal Guru
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Jul 12, 2003
11197 posts
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Toronto
Base on Bobblehead's info on a new car, there is not much incentive for you to take over the lease.
That other one only allow 12000km and the one brand new for 20000km is 521.80+tax
Even 12000km is what you need, you can get a brand new one for probably close to 500+tax with 12k allowance.

Unless the leasee is giving your a big cash incentive. There is no deal to take that car over.
Plus that's only if the leasee is covering 100% on the admin and lease transfer cost which is probably $1k.
Retired Forum Moderator February 2009 - June 2015

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