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one-pay lease

mbmmbm Member Posts: 6
edited August 2022 in BMW
I am looking to lease a x5, but I have enough cash to pay the lease at once.The dealer is not happy with this and told me it is a mistake and will not agree on this deal.(I think because he lose the interest)

I am wondering is it possible to sign the lease agreement with 5000 down and next month to pay all the remaining lease?
What is happen in these case - I pay only amount borrowed and safe the interest or I need to pay the borrowed amount with the interest for the 36 months?

I will appreciate any opinion , I never lease and now the interest is very high and I don't want to pay so high interest

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    kyfdxkyfdx Moderator Posts: 238,864
    mbm said:

    I am looking to lease a x5, but I have enough cash to pay the lease at once.The dealer is not happy with this and told me it is a mistake and will not agree on this deal.(I think because he lose the interest)

    I am wondering is it possible to sign the lease agreement with 5000 down and next month to pay all the remaining lease?
    What is happen in these case - I pay only amount borrowed and safe the interest or I need to pay the borrowed amount with the interest for the 36 months?

    I will appreciate any opinion , I never lease and now the interest is very high and I don't want to pay so high interest

    The discounted MF for a single pay lease with BMW is very small. (.00030 discount). Certainly not worth paying it all upfront, even if you have the cash. I doubt the dealer's cut is big enough to cause him to recommend against it, in any case.

    BMWFS will not give you any discount/credit for pre-paying your lease payments, after lease inception.

    Why not just buy the vehicle?

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    mbmmbm Member Posts: 6
    Don't have enough to buy, I am looking in the used market , but prices for used one are high.
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    mbmmbm Member Posts: 6
    Is MF 0.00270 good at this situation
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    kyfdxkyfdx Moderator Posts: 238,864
    mbm said:

    Is MF 0.00270 good at this situation

    If you have top tier credit, the base MF is .00200, with the dealer allowed to markup the rate by .00040.

    Lower credit tiers come with higher rates.

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    peroz18peroz18 Member Posts: 69
    I know this is late to respond, but I thought there might be others who are thinking about it.

    I would never do a one-time payment lease. For my first BMW lease (I leased before), I traded in my SUV and put down a large cap cost reduction cash. I was targeting a monthly payment at the time. I totaled that car within the first year, and, all that equity was lost during the process. I wouldn't want to take the same risk again. (I hope I won't total another car -- I am much wiser I think)
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    MichaellMichaell Moderator Posts: 242,539
    peroz18 said:

    I know this is late to respond, but I thought there might be others who are thinking about it.

    I would never do a one-time payment lease. For my first BMW lease (I leased before), I traded in my SUV and put down a large cap cost reduction cash. I was targeting a monthly payment at the time. I totaled that car within the first year, and, all that equity was lost during the process. I wouldn't want to take the same risk again. (I hope I won't total another car -- I am much wiser I think)

    There is a difference between a one-pay lease, and a large cap reduction.

    As you learned, a cap reduction is at risk if the car is stolen or totaled during the lease term.

    A one-pay lease will give you a reduction on the MF, meaning you pay less rent charge for the lease term, but that money is held in an escrow account, and the monthly payment is made from it. If the car is stolen or totaled during the lease, the balance in the escrow account is returned to the customer.

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