Quote:
Originally Posted by alex2364
Lease transfer only works if you negotiate an amazing deal in the first place or put a lot of money down. No one will want a similar deal they can negotiate with the dealer themselves.
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I would never put anything down on a lease, but if I did, I would ask for a portion of that back for the lease transfer since the new owner is taking advantage of a lower payment due to the money down. (Money down/months of lease term)*months of ownership=how much they should pay you. However, putting a large amount down does not alone make a good lease deal.
Secondly, I only lease if the lease has favorable terms, so my leases should be attractive transfers. For instance, my i3 REx lease with an MSRP of $53k leases for $180/mo before tax. It would get lease transferred very quickly.
Third, if even a good lease deal isn't attractive to potential lease transfer recipients, a purchased car negotiated for the same selling price as said lease will not be attractive either. In this case, the lease at least has a guaranteed residual baked into the lease, and since it's BMW, it will be inflated. The purchased car will most likely either have a higher monthly, or a longer term with which the owner will be tied down to.
Fourth, if a car's real world residual is higher than the lease residual, you have every right to sell the car for higher than what is owed just like a financed car. HOWEVER, if the market is bad and the real world residual is lower than the lease residual, it doesn't effect you. You sill get the better residual. With a purchased car, you do not. So,
within the term of the lease, the leased car has all the market advantages of the purchased car, but without the risk.
On a side note, this is how people afford Ferraris. Instead of a Closed End Lease that we have on most cars, Ferrari only does Open End Leases. It keep the monthly payment significantly lower than financing the car. At the end of the term, if it's the right Ferrari, the car has actually either appreciated in value, or has depreciated very little compared to a "normal" car. The car is then sold to a third party. Since the leaser retains the rights to sell the car, just like in any lease, then he/she is entitled to the profit if any. The original leaser uses the sale to pay down the close end lease balloon payment.
And that's how you drive a Ferrari for 2-3 years without going broke.