Question: Voluntary Turnover of a Leased...

Bubkus · 08-03-2009, 03:48 PM

Fellas -

As I'll be unable to pay for my car (soon), I'm considering returning my 08 M3 to the dealership within a week or two. The car is currently on a 42 month lease, with nearly 25 months left and is posted in the "For Sale" section of M3Post. For those of you interested in checking it out, it's the "AW E92 M3: FS or Lease Assumption".

So, what are the repercussions? Obviously my credit will get destroyed, but is it as bad as a personal bankruptcy in that the latter remains on your file for 10 years? Furthermore, will I be forever 'blacklisted' by BMWFS? I'm assuming it will hurt my chances in buying a house (down the road)..........anyone know how badly?

Any options I'm not considering - I have tried to get rid of the car, but there are no takers.

Thoughts......suggestions.......will be greatly, greatly appreciated!

ideliver · 08-03-2009, 04:08 PM

they won't take the car...you have a contract with BMWFA...they want your money, not the car...

just stop paying...play hide and seek with the repo man..

Sorry to hear about ur troubles

808six · 08-03-2009, 04:08 PM

deff not as bad as bkcy, your credit score will take a big blow, but if this is th eonly negative thing on your credit report, you should be able to raise your score in no time...im assuming your lines aren't maxed out completely and you rmaking more than minimum payments ontime...if my assumptions are right, youll be alright buying a house down the road

stooken · 08-03-2009, 04:27 PM

too bad you're interior isn't black. i think that might've helped you out a lot.

i would try selling the car at a deep discount and just take a hit on the rest. you're FS thread mentions nothing of incentives or discounts. i've seen E92 M3's go for lease payments of ~$850 so your $1000 is a bit high.

would the dealer do a buy back at a discounted price? you'll lose out but then they can turn around and resell the car for some profit.

Bubkus · 08-03-2009, 04:42 PM

Thanks for the advice fellas.

I have offered an incentive of up to $4K now, which would effectively reduce the monthly payment to around $840, but still have had no takers due to the mileage being high (19K).

I really don't want to go down this dark road, but aside from taking on debt to pay for the car, I have no other choice.

jlstyle · 08-03-2009, 04:54 PM

Oh I didn't know there was a volutary turnover of a lease.
Anyways, that has to damage your credit big time as it's not anything different from house foreclosure.

If I were you I would rather give bigger discount on the vehicle until someone bites on it.
I don't know about your allowed milege but I assume it's 10k a year since you say 19k is high, so if this is true, your $4k incentive istn' that good as your listed price is already high for the car, especially in this bad economy.
I would rather lose bit more $$$ upfront to keep my credit record good.

Good luck with everything.

Bubkus · 08-03-2009, 05:02 PM

Sorry, mileage is 15K/year. And if I honestly could offer a larger incentive, I would, but I'm not in the greatest financial position at this point in time. Such is life.

And yeah, I misstated the "voluntary" turnover part - what I meant is that I'm planning on returning my car to the dealership - don't know if that's possible, but guessing from an earlier reply that it's not.

stooken · 08-03-2009, 06:32 PM

@ 19k miles, you're not really over mileage. 15k/year puts you at 1,250 miles a month. you're 15 months into the lease which should be 18,750 miles.

maybe you can research shipping costs throughout the US and see if it's feasible to offer free shipping as well? i think shipping to the west coast is about $2k?

considering all this, you should know how much of a hit you can actually take before it just doesn't make sense anymore. if you have a hard time paying the car now, i don't know how you'll be able to find money to cover the loss. cash advance? line of credit? you're going to get people that are going to try to take advantage of your situation to get the best deal they can.

solefald · 08-03-2009, 06:58 PM

when i got divorced, my ex stopped paying for her leased car, just to piss me off, since the car was on my name. after not paying for it for 4 months (and me having to pay for it because the finance company was calling me, not her) i went to her house in a middle of the night with my own key, unlocked the car, dumped all of her shit in the drive way and drove off. yes, i am that much of an asshole.

anyway, after this i ended up with 2 leased cars, so i had to turn one in. this fucked my credit history pretty bad for the next 7 years, because voluntary surrender still goes onto your credit history as repossession. not as bad as bankruptcy, but still pretty freaking bad. my credit score is still all fucked up, even though the only money i owe is on my E92.

StrifeM3 · 08-03-2009, 07:45 PM

Quote:

Originally Posted by solefald

when i got divorced, my ex stopped paying for her leased car, just to piss me off, since the car was on my name. after not paying for it for 4 months (and me having to pay for it because the finance company was calling me, not her) i went to her house in a middle of the night with my own key, unlocked the car, dumped all of her shit in the drive way and drove off. yes, i am that much of an asshole.

anyway, after this i ended up with 2 leased cars, so i had to turn one in. this fucked my credit history pretty bad for the next 7 years, because voluntary surrender still goes onto your credit history as repossession. not as bad as bankruptcy, but still pretty freaking bad. my credit score is still all fucked up, even though the only money i owe is on my E92.

good stuff...

Mossive · 08-03-2009, 09:08 PM

i had a similar situation and posted it on a local newspapers classifieds. within two days had two guys willing to sling deals of one way or another. its doable but takes some creative financing for sure. good luck

'Cane · 08-03-2009, 10:39 PM

Not sure how it is in this economic climate, but back when I was in the business, a voluntary surrender (which is exactly the same as a repo) was worse than a Bankruptcy. I could get people approved all the time with bankruptcy, but not one person with a repo ever got bought. Do WHATEVER is in your power to avoid it.

MisterSkiMask · 08-03-2009, 10:50 PM

How much do you owe, how much is it worth, and will you have no car when this is gone?

MisterSkiMask · 08-03-2009, 10:53 PM

Depending on how much negative equity you have, you may be able to find a cheapish domestic car that is offering huge incentives to help soak up the negative equity. Just a thought.

mtla4 · 08-03-2009, 11:12 PM

Quote:

Originally Posted by MisterSkiMask

Depending on how much negative equity you have, you may be able to find a cheapish domestic car that is offering huge incentives to help soak up the negative equity. Just a thought.

Smartest post so far. Go buy a G6 or something like that.

Bubkus · 08-04-2009, 12:09 AM

Thanks for all the responses Fellas - sincerely appreciated.

I did some research about the repo and it's as bad as some of you have stated - I will have to figure something out. And fast.

nnnnnnnnnnnnnnnnnnnnnn · 08-04-2009, 12:59 AM

have you called BMW yet to see what your options are?

Bubkus · 08-04-2009, 02:39 PM

Called BMW and essentially, as a few of the others mentioned, I will have to sign a voluntary repossession. The car will then be auctioned, with me paying off the difference between the buyout and auction price.

The rep wasn't entirely sure about the credit issue, but was quite certain I will take a hit. Which I know I will.

TurboFan · 08-04-2009, 07:19 PM

Quote:

Originally Posted by Bubkus

Fellas -

As I'll be unable to pay for my car (soon), I'm considering returning my 08 M3 to the dealership within a week or two. The car is currently on a 42 month lease, with nearly 25 months left and is posted in the "For Sale" section of M3Post. For those of you interested in checking it out, it's the "AW E92 M3: FS or Lease Assumption".

So, what are the repercussions? Obviously my credit will get destroyed, but is it as bad as a personal bankruptcy in that the latter remains on your file for 10 years? Furthermore, will I be forever 'blacklisted' by BMWFS? I'm assuming it will hurt my chances in buying a house (down the road)..........anyone know how badly?

Any options I'm not considering - I have tried to get rid of the car, but there are no takers.

Thoughts......suggestions.......will be greatly, greatly appreciated!

Voluntary least turn-in is far better than a repo on your credit. I would suggest you go to the dealer and talk to the finance manager, or call BMWFS.

A friend of mine is doing this with his Toyota. While each company is different, it basically goes like this:

1. If you are behind, you will have to get current.
2. If you are over miles for the period of you lease, you will owe for that.
3. You are breaking a contract, and there is usually a clause in your lease for this. You will pay a penalty, but they may be willing to work with you as you are being up-front with them and making it easy. Repo is a pita for everyone.

'Cane · 08-04-2009, 07:22 PM

Quote:

Originally Posted by TurboFan

Voluntary least turn-in is far better than a repo on your credit. I would suggest you go to the dealer and talk to the finance manager, or call BMWFS.

That is incorrect. It is exactly the same as a repo, the terms are interchangeable. Anyone that has any experience in the car business (8 years for me) will tell you that.

Mossive · 08-04-2009, 07:25 PM

Quote:

Originally Posted by Bubkus

Called BMW and essentially, as a few of the others mentioned, I will have to sign a voluntary repossession. The car will then be auctioned, with me paying off the difference between the buyout and auction price.

The rep wasn't entirely sure about the credit issue, but was quite certain I will take a hit. Which I know I will.

this was true with GMAC when i had troubles with my truck!

Bubkus · 08-05-2009, 12:55 AM

Quote:

Originally Posted by TurboFan

Voluntary least turn-in is far better than a repo on your credit. I would suggest you go to the dealer and talk to the finance manager, or call BMWFS.

A friend of mine is doing this with his Toyota. While each company is different, it basically goes like this:

1. If you are behind, you will have to get current.
2. If you are over miles for the period of you lease, you will owe for that.
3. You are breaking a contract, and there is usually a clause in your lease for this. You will pay a penalty, but they may be willing to work with you as you are being up-front with them and making it easy. Repo is a pita for everyone.

I contacted my the finance rep at the dealership I picked up my car (BMW Gallery at Norwood). However, I have yet to hear back from her.......probably doesn't want to deal with me and my troubles now

08-03-2009, 03:48 PM	#1
Bubkus Bubkus 7 Rep 5 Posts Drives: E92 M3 Join Date: Apr 2009 Location: Burlington, MA iTrader: (0)	Question: Voluntary Turnover of a Leased... Fellas - As I'll be unable to pay for my car (soon), I'm considering returning my 08 M3 to the dealership within a week or two. The car is currently on a 42 month lease, with nearly 25 months left and is posted in the "For Sale" section of M3Post. For those of you interested in checking it out, it's the "AW E92 M3: FS or Lease Assumption". So, what are the repercussions? Obviously my credit will get destroyed, but is it as bad as a personal bankruptcy in that the latter remains on your file for 10 years? Furthermore, will I be forever 'blacklisted' by BMWFS? I'm assuming it will hurt my chances in buying a house (down the road)..........anyone know how badly? Any options I'm not considering - I have tried to get rid of the car, but there are no takers. Thoughts......suggestions.......will be greatly, greatly appreciated!
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08-03-2009, 04:08 PM	#2
ideliver Major 246 Rep 1,247 Posts Drives: E60 M5, E71 X6M, E46 M3 Join Date: Feb 2008 Location: At the gas station iTrader: (0) Garage List 2006 BMW E46 M3 'vert [0.00] 2008 BMW M5 [0.00] 2011 BMW E92 [0.00] 2012 BMW X6M [0.00] 2003 E46 M3 [0.00]	they won't take the car...you have a contract with BMWFA...they want your money, not the car... just stop paying...play hide and seek with the repo man.. Sorry to hear about ur troubles __________________ Current: 2006 E46 M3 'vert 6-sp 2008 E60 M5, 2011 E92 328 6-sp, 2011 E70 N55, 2012 E71 X6M
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08-03-2009, 04:08 PM	#3
808six Second Lieutenant 16 Rep 274 Posts Drives: AW 335 COUPE Join Date: Nov 2005 Location: HAWAII iTrader: (1)	deff not as bad as bkcy, your credit score will take a big blow, but if this is th eonly negative thing on your credit report, you should be able to raise your score in no time...im assuming your lines aren't maxed out completely and you rmaking more than minimum payments ontime...if my assumptions are right, youll be alright buying a house down the road
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08-03-2009, 04:27 PM	#4
stooken Brigadier General 186 Rep 4,243 Posts Drives: E70 X5 Join Date: Apr 2007 Location: NOR*CAL iTrader: (2)	too bad you're interior isn't black. i think that might've helped you out a lot. i would try selling the car at a deep discount and just take a hit on the rest. you're FS thread mentions nothing of incentives or discounts. i've seen E92 M3's go for lease payments of ~$850 so your $1000 is a bit high. would the dealer do a buy back at a discounted price? you'll lose out but then they can turn around and resell the car for some profit. __________________ 2010 E92 BSM 335i \| M-Sport \| ST Coils \| Linea Corse Lemans \| Cobb AP \| BMS DCI \| Cyba Tips
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08-03-2009, 04:42 PM	#5
Bubkus Bubkus 7 Rep 5 Posts Drives: E92 M3 Join Date: Apr 2009 Location: Burlington, MA iTrader: (0)	Thanks for the advice fellas. I have offered an incentive of up to $4K now, which would effectively reduce the monthly payment to around $840, but still have had no takers due to the mileage being high (19K). I really don't want to go down this dark road, but aside from taking on debt to pay for the car, I have no other choice.
	Appreciate 0 Quote

08-03-2009, 04:54 PM	#6
jlstyle Lieutenant Colonel 362 Rep 1,762 Posts Drives: Porsche Panamera Join Date: Jun 2008 Location: USA iTrader: (0) Garage List 2014 Audi S7 [0.00] 2015 BMW X5 [0.00]	Oh I didn't know there was a volutary turnover of a lease. Anyways, that has to damage your credit big time as it's not anything different from house foreclosure. If I were you I would rather give bigger discount on the vehicle until someone bites on it. I don't know about your allowed milege but I assume it's 10k a year since you say 19k is high, so if this is true, your $4k incentive istn' that good as your listed price is already high for the car, especially in this bad economy. I would rather lose bit more $$$ upfront to keep my credit record good. Good luck with everything.
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08-03-2009, 05:02 PM	#7
Bubkus Bubkus 7 Rep 5 Posts Drives: E92 M3 Join Date: Apr 2009 Location: Burlington, MA iTrader: (0)	Sorry, mileage is 15K/year. And if I honestly could offer a larger incentive, I would, but I'm not in the greatest financial position at this point in time. Such is life. And yeah, I misstated the "voluntary" turnover part - what I meant is that I'm planning on returning my car to the dealership - don't know if that's possible, but guessing from an earlier reply that it's not.
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08-03-2009, 06:32 PM	#8
stooken Brigadier General 186 Rep 4,243 Posts Drives: E70 X5 Join Date: Apr 2007 Location: NOR*CAL iTrader: (2)	@ 19k miles, you're not really over mileage. 15k/year puts you at 1,250 miles a month. you're 15 months into the lease which should be 18,750 miles. maybe you can research shipping costs throughout the US and see if it's feasible to offer free shipping as well? i think shipping to the west coast is about $2k? considering all this, you should know how much of a hit you can actually take before it just doesn't make sense anymore. if you have a hard time paying the car now, i don't know how you'll be able to find money to cover the loss. cash advance? line of credit? you're going to get people that are going to try to take advantage of your situation to get the best deal they can. __________________ 2010 E92 BSM 335i \| M-Sport \| ST Coils \| Linea Corse Lemans \| Cobb AP \| BMS DCI \| Cyba Tips
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08-03-2009, 06:58 PM	#9
solefald Nigerian Prince 396 Rep 2,180 Posts Drives: '11 F25 Join Date: Apr 2008 Location: San Diego, CA iTrader: (2) Garage List '11 BMW F25 [0.00]	when i got divorced, my ex stopped paying for her leased car, just to piss me off, since the car was on my name. after not paying for it for 4 months (and me having to pay for it because the finance company was calling me, not her) i went to her house in a middle of the night with my own key, unlocked the car, dumped all of her shit in the drive way and drove off. yes, i am that much of an asshole. anyway, after this i ended up with 2 leased cars, so i had to turn one in. this fucked my credit history pretty bad for the next 7 years, because voluntary surrender still goes onto your credit history as repossession. not as bad as bankruptcy, but still pretty freaking bad. my credit score is still all fucked up, even though the only money i owe is on my E92. __________________ http://soundcloud.com/djtchort
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08-03-2009, 09:08 PM	#11
Mossive New Member 5 Rep 28 Posts Drives: e92 soon! Join Date: Jul 2009 Location: Texas iTrader: (0)	i had a similar situation and posted it on a local newspapers classifieds. within two days had two guys willing to sling deals of one way or another. its doable but takes some creative financing for sure. good luck
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08-03-2009, 10:39 PM	#12
'Cane Major General 9758 Rep 6,047 Posts Drives: 2022 Aventurin/SS G82 xDrive Join Date: Feb 2007 Location: South Florida iTrader: (0) Garage List 2022 M4 Comp AWD [8.00]	Not sure how it is in this economic climate, but back when I was in the business, a voluntary surrender (which is exactly the same as a repo) was worse than a Bankruptcy. I could get people approved all the time with bankruptcy, but not one person with a repo ever got bought. Do WHATEVER is in your power to avoid it.
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08-03-2009, 10:50 PM	#13
MisterSkiMask Banned 149 Rep 2,014 Posts Drives: I Can not say Join Date: Nov 2005 Location: you must not know iTrader: (0)	How much do you owe, how much is it worth, and will you have no car when this is gone?
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08-03-2009, 10:53 PM	#14
MisterSkiMask Banned 149 Rep 2,014 Posts Drives: I Can not say Join Date: Nov 2005 Location: you must not know iTrader: (0)	Depending on how much negative equity you have, you may be able to find a cheapish domestic car that is offering huge incentives to help soak up the negative equity. Just a thought.
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08-04-2009, 12:09 AM	#16
Bubkus Bubkus 7 Rep 5 Posts Drives: E92 M3 Join Date: Apr 2009 Location: Burlington, MA iTrader: (0)	Thanks for all the responses Fellas - sincerely appreciated. I did some research about the repo and it's as bad as some of you have stated - I will have to figure something out. And fast.
	Appreciate 0 Quote

08-04-2009, 12:59 AM	#17
nnnnnnnnnnnnnnnnnnnnnn Lieutenant 112 Rep 465 Posts Drives: 1 Join Date: Jan 2008 Location: 2 iTrader: (0)	have you called BMW yet to see what your options are?
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08-04-2009, 02:39 PM	#18
Bubkus Bubkus 7 Rep 5 Posts Drives: E92 M3 Join Date: Apr 2009 Location: Burlington, MA iTrader: (0)	Called BMW and essentially, as a few of the others mentioned, I will have to sign a voluntary repossession. The car will then be auctioned, with me paying off the difference between the buyout and auction price. The rep wasn't entirely sure about the credit issue, but was quite certain I will take a hit. Which I know I will.
	Appreciate 0 Quote