[FotiosF90M5]

I was wondering if anyone knew anything about paying a lease off in full with over 2 years left on it. Other than having no payments are there any other benefits? home refi and bank is making us payoff both cars, yukon and bimmer.Its going to be very difficult to resist getting a 335i and getting myself into trouble... I never learn

[FotiosF90M5]

does anyone out there have any knowledge of this

[BMW F22]

no interest?? I cant think of anything bad with it. If you could then you should do it.

[FotiosF90M5]

its just weird, I guess it makes no difference. I need some will power to not get the 335i sedan. thanks

[F2006]

I'm not sure if this applies to your situation, but there have been many posts warning of the danger of losing the down payment - when doing a lease - in case the car is totaled in an accident. Hence the common advice of doing only zero-down leases.

I suggest you double check with your insurance and lease company how they would handle this situation, before you prepay anything.

[ck1129]

If you do a one pay, there is GAP insurance i believe, and you are fine. If you put like 10k down, then yes you do lose it.

[FotiosF90M5]

do you have to purchase the gap insurance or is it applied automatically. It seems like there is a good possibility I could lose all that money if (god forbid) the car was totalled.hmmmm....

[noro]

Giving away cash unless you have to is generally considered an unwise move, unless you are paying some kind of an outrageous interest rate on it.

[BK]

I don't lease, but I suppose it depends on the money factor (interest rate) of your lease, just like paying off a loan early. Right?

[lkevinl]

All I can say is "OY".
Don't do it man. You can get 5% interest in an E-Trade savings account for God's sake! Park your money there and make payments from that account.

[BmWr1d3h]

Do NOT do anything like that!!! If you have the cash then buy the car.

[FotiosF90M5]

I didnt like it when they told me that its a requirement from the lender.Im going to figure something else out, it just doesnt seem right.thanks guys.

[Dmitriy@AUTOcouture]

Originally Posted by fotios330i

I didnt like it when they told me that its a requirement from the lender.Im going to figure something else out, it just doesnt seem right.thanks guys.

I'm a mortgage loan officer for JPMorgan Chase in NYC, send me a PM and let me know why they are making you pay off a lease. Unless your credit score is below thier guidelines for a Stated Income/Stated Asset refi then I do not see why they are making you do this. I will send you a PM with this post as well.

-Dmitriy

[SteveMD]

Originally Posted by fotios330i

I was wondering if anyone knew anything about paying a lease off in full with over 2 years left on it. Other than having no payments are there any other benefits? home refi and bank is making us payoff both cars, yukon and bimmer.Its going to be very difficult to resist getting a 335i and getting myself into trouble... I never learn

I'm neither an accountant nor a financial advisor but I would think twice before putting your two cars into a refi. You are taking short term debt and amortising it over a much longer period - I would assume at least 15 years??

Of course I am not privy to your situation, but If possible, I would take the cars out of the equation and roll in just all your credit cards and other debt along with your first note.

Pay off the Yukon as soon as possible and live with the BMW lease.

[FotiosF90M5]

Thats what I want to do, and the yukons rate is 6%, so its a good rate.Im going to talk to him tomorrow, thanks for your input. all of you