[Bc2005]

I have noticed that as interest rates go higher, and the cost of buying goes up, some manufacturers seem to be offering really good lease incentives. It’s also common to have good lease incentives for Electric and PHEV vehicles. For example, Toyota has a $6,500 credit if you lease the Rav4 Prime PHEV.

I have a 2021 M340i and the dealer just sent me a bingo card advertisement that said it’s worth about 40k as a trade-in. My car is paid for, and I could probably get a new M340i for about 65k, so the new car is only about 25k more than the trade-in.

If I leased a new car (primarily to get a good incentive), how do most people handle this type of situation where your old vehicle has high value? Do they take the full trade-in value against the lease cost? Or is there some other type of arrangement they make?

[toddwalton]

I did this 10 months ago with the Honda Civic I lease for my kids, because of Covid and such it had very low mileage and was worth $4,000 more than the residual.

Honda leases had gone crazy and all I wanted to do was get back in the same deal I had before, no money down, same $299 a month payment, same 36,000 miles. And I told him I knew there was residual value in the car and that I could return this car to any Honda dealer I wanted. Explained the same thing to 5 other dealers in the area.

One of them finally bit. Wound up getting a higher level of the Civic at the exact same price and mileage I had paid when I gotten the first lease back in 2019.

But be advised, when I tried the same strategy with my way under the mileage limit great condition three-year-old X7, no BMW dealer wanted to touch it. We wound up buying it and buying an extended warranty. So your mileage may vary.

[Throatpunch]

Dont roll equity into a lease. Have them write a check for the full value or the car and you cash that and hold it.
The reason why-Equity aka a down payment on a rental is stupid. If you total the car u are out all the money.

Best is to do security deposits- bmw i think still does a max of 10 payments which lowers the money factor (aka interest on the lease). You get that money back in the end, but most banks can give you a return better than the MF discounts

If i were you i would just keep the car

[TurtleBoy]

Originally Posted by Throatpunch

Dont roll equity into a lease. Have them write a check for the full value or the car and you cash that and hold it.
The reason why-Equity aka a down payment on a rental is stupid. If you total the car u are out all the money.

Best is to do security deposits- bmw i think still does a max of 10 payments which lowers the money factor (aka interest on the lease). You get that money back in the end, but most banks can give you a return better than the MF discounts

If i were you i would just keep the car

BMW allows up to 7 MSDs each reducing the MF by .00006 (at least for 2023, haven't seen 2024 numbers if there was a change).

OP - as mentioned, sell the vehicle to the dealer rather than rolling any equity into the lease. Also keep in mind those bingo cards are a marketing tool, not an offer.

[Throatpunch]

Originally Posted by TurtleBoy

BMW allows up to 7 MSDs each reducing the MF by .00006 (at least for 2023, haven't seen 2024 numbers if there was a change).

OP - as mentioned, sell the vehicle to the dealer rather than rolling any equity into the lease. Also keep in mind those bingo cards are a marketing tool, not an offer.

MF varies by lease terms and mileage and even zip code, and can change every month

[noname]

I’ve been eyeing this same situation for my wife’s X3.

Ofher than Leasehackr and looking at dealers separately, is there another place you guys are finding good leases online?

[TurtleBoy]

Originally Posted by Throatpunch

MF varies by lease terms and mileage and even zip code, and can change every month

True, but irrelevant to my post.