Quote:
Originally Posted by BMWCCA1
You exhibit a basic misunderstanding of leases and contracts. Our dealership has to pay what the lessee owes plus the residual value to purchase the car from BMW on an early termination. Leases are cheap on a monthly basis because the manufacturer places an artificially high residual value which lowers the payment. BMW doesn't care if the car is worth half the residual value at the end because they sold a car. For example, I've never seen a customer purchase an i3 at the end of their lease because in many cases that cost is $10,000 or more over the market value of the car.
For us to buy a car from BMW FS, particularly one in a legal action like bankruptcy or death, costs us the remainder of the payments plus the residual. In many cases the manufacturer cannot sell the car except at auction which determines the value in the market and then factors that into what the estate or bankruptcy charges the original lessee.
In these modern times, the dealership might make $2000 leasing a $70k car to a customer. No matter how tragic their circumstances, how do you reasonably expect a dealership to overpay $10,000 or more to help make a bereaved family whole?
Why continue to vilify the dealership? What happens if you die and you still have a home mortgage? Is it the fault of the realtor who sold you the house if it's not worth your mortgage balance? Is it even the bank's fault? So who sucks it up? Do you charge your broker back if you bought stock and had to cash-in to pay health costs and your investment has tanked?
In case you hadn't noticed, there is a lot of unfairness in this world, just as there is risk associated with all purchases that a consumer assumes with little thought. I've worked for dealerships since 1976 and even owned my own for about five-years. I doubt I'd have some third-generation customers from the same family still buying from me today if we act with the malevolence you casually assign to all dealerships in your statements.
Again, lease payments are protected by the included GAP coverage (free in a BMW lease) if the car is totaled. Just like your house, your insurance covers you in case of damage. It does not cover you in the case of depreciation if you want to get out of the mortgage. Or if you die.
If you must place blame in a society where personal responsibility seems to have taken a hike, then blame the manufacturer. Or sue them. That's what the President does.
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Great post. Always makes me wonder how people afford BMWs and are clueless to basic finance.