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03-01-2015, 10:13 AM
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#7
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Brigadier General 
Drives: '20 F80 M3CS, %E2%80%9818 GT3
Join Date: Nov 2013
Location: California
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Quote:
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Originally Posted by Midwest M235i
Quote:
Originally Posted by Thescout13
I love this question.
Basically the pull ahead lease is an easy way for the dealer to make you think they are giving you a hell of a "deal".
Let's play the scenario out.
You have 3 payments left at $325 a month.
Dealer offers you a "pull ahead" program and says they will pay the remaining payments for you.
They do this for a couple reasons: A. You are less likely to ask for other incentives or negotiate a lower price on the new car so they basically roll those last three payments into your new lease under the sale price guise. (Main reason) B. A more rare, but profitable reason - The car is actually worth a lot more to them in the short term then the payoff amount actually would be.
This is how B plays out. Your car after 3 years is selling for $30k, which means your trade in value is about 27.5-28k. However when the lease was signed three years earlier they were projecting the depreciation at 25k residual and thus your payoff is around this amount. Well if you negotiate it as a normal "trade in" that dealer would have to fork up the 28k and you'd be positive going into the new lease. However, if they say they will pay your last three payments, they are getting the car at a steal. They would pay the leinholder the roughly 26k payoff amount and now have a car on their lot that has the potential for a 4k profit as opposed to a 2k profit.
Basically, understand what your car is worth and what the payoff amount is before you say yes to one of these programs. And always stack more incentives and negotiate for a lower price.
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This...So this.
In my case, I had a dealer pull ahead that was 6 mos..I jumped on it as I had poured a bunch of negative equity into my previous lease and was paying that off in monthly installments.
The pull ahead allowed me to write off that debt 6 mos earlier. I was well armed on invoice, money factors too...It was a no brainer for me.
Mine is an unusual case I understand. As the op points out, do your homework before signing anything. |
Congrats man
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Wife's Car: 2020 X4M Competition, Alpine White on Black Alcantara and Biege
Current Car: 2018 F80 M3CS, SMB, DCT, ZEC, MPE
Recently Departed: 2020 F87 M2C, LBB, ZEC, 6MT (Euro Delivery Aug. 29, 2019, totaled by an idiot in a Camry who then ran from the scene)
Wife's Prior Car: 2018 F80 M3, Yas Marina Blue, DCT, Black 19s, Carbon Structure Anthracite Cloth/Leather Combination, Driving Assistance Package (Euro Delivery Oct. 9, 2017)
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