Need help with Trade Assist (in the process)

[LCI550M]

Hi all,

I need some help from you guys here. Some of you guys know more about leasing and trade assist so any help would be much appreciated.

My leased 2015 550 has been at the dealer for 5 weeks at this point for a engine issue they can't seem to fix. They've tried replacing numerous items, turbos, transmission etc.. and all of them failed. They are now saying it needs a entirely new motor to put in. All this on a car that is only 1 year old with 5K miles on the odometer. I knew going in the N63TU isn't going to be the most reliable engine out there but requiring a new engine is unacceptable. I had plans to buy out this car at the end of the lease but thats not going to happen now with the engine changed.

I pushed for getting me into a new car and the dealer got approval from BMW to do so. They told me since my car is over a year old at this point and given its issues they will have to start me on a new lease entirely. Basically starting a 3 year lease all over again even though I am already 1 year in with existing lease. Originally i was against this because i typically don't like to stay in the same model car for more than 3 years (which is why i lease). After some thought i figure why not make lemonade out of this crappy situation and upgrade to a M5, a car that i've always dreamed about. I understand that that there will be additional cost on my part since the car cost more (75K vs 100K) and I am ok with that.

Fast forward when discussing numbers with my sales guy he mentioned to me that I need to come up with 25K to pay for the full difference between the two cars and that this will be a continuation of my existing lease. There is no way BMW would allow me to start a new lease over according to his sales manager which is different from what i was told all along. So in a nutshell they expect me to pay 25K out of pocket now to get into a M5 for only 22 months left on my existing lease contract. Does that sound right to you guys at all because it doesn't to me according to my math. When we lease cars we pay a residualized portion of the cars msrp through out the life of the lease of 36 month. We aren't paying for the full cost of the car in 36 months. Right now they are expecting me to pay the full cost difference of the car (not residualized) and only to enjoy the car for 2 years. Maybe i'm missing something here but this trade "assist" isn't assisting me the customer at all besides giving it to me with no lube. Also keep in mind that I paid all taxes were paid up front with my current car so I feel like i'm also losing that as well. Im not changing cars because i want to. There is an existing issue with the motor that the dealer can't seem to fix for 5 weeks while taking the entire drivetrain out.

Thoughts?

Joe

[apexlocator]

I agree with your rationale concerning the full 25k difference not reflecting the lease residual. What did the dealer say to this common sense rationale?

Dont you just love it when the same dealer tells you different things and strings you along? Are you able to speak with BMW directly? Does your state's lemon law cover leased vehicles? (I think most do)

[platinum903]

Originally Posted by LCI550M

I had plans to buy out this car at the end of the lease but thats not going to happen now with the engine changed.

Originally i was against this because i typically don't like to stay in the same model car for more than 3 years (which is why i lease).

These 2 statements don't align.

I'd tell the dealer to rip up the existing lease and then go to a different dealer. If they didn't, I hand it over to my attorney to deal with. That BS they fed you about having to pay the $25 difference is just that, BS.

[lemetier]

Originally Posted by LCI550M

Hi all,

I need some help from you guys here. Some of you guys know more about leasing and trade assist so any help would be much appreciated.

My leased 2015 550 has been at the dealer for 5 weeks at this point for a engine issue they can't seem to fix. They've tried replacing numerous items, turbos, transmission etc.. and all of them failed. They are now saying it needs a entirely new motor to put in. All this on a car that is only 1 year old with 5K miles on the odometer. I knew going in the N63TU isn't going to be the most reliable engine out there but requiring a new engine is unacceptable. I had plans to buy out this car at the end of the lease but thats not going to happen now with the engine changed.

I pushed for getting me into a new car and the dealer got approval from BMW to do so. They told me since my car is over a year old at this point and given its issues they will have to start me on a new lease entirely. Basically starting a 3 year lease all over again even though I am already 1 year in with existing lease. Originally i was against this because i typically don't like to stay in the same model car for more than 3 years (which is why i lease). After some thought i figure why not make lemonade out of this crappy situation and upgrade to a M5, a car that i've always dreamed about. I understand that that there will be additional cost on my part since the car cost more (75K vs 100K) and I am ok with that.

Fast forward when discussing numbers with my sales guy he mentioned to me that I need to come up with 25K to pay for the full difference between the two cars and that this will be a continuation of my existing lease. There is no way BMW would allow me to start a new lease over according to his sales manager which is different from what i was told all along. So in a nutshell they expect me to pay 25K out of pocket now to get into a M5 for only 22 months left on my existing lease contract. Does that sound right to you guys at all because it doesn't to me according to my math. When we lease cars we pay a residualized portion of the cars msrp through out the life of the lease of 36 month. We aren't paying for the full cost of the car in 36 months. Right now they are expecting me to pay the full cost difference of the car (not residualized) and only to enjoy the car for 2 years. Maybe i'm missing something here but this trade "assist" isn't assisting me the customer at all besides giving it to me with no lube. Also keep in mind that I paid all taxes were paid up front with my current car so I feel like i'm also losing that as well. Im not changing cars because i want to. There is an existing issue with the motor that the dealer can't seem to fix for 5 weeks while taking the entire drivetrain out.

Thoughts?

Joe

Quite a bit of conflicting info as others have pointed out.

I'm assuming you've brought up or initiated Lemon Law action to reach this situation, and did so after a goodwill offer was made. Once that's done, the rules change and both parties must adhere to the LL guidelines. The obligations of each party varies by State. Both Exchange of Collateral and Early Lease Termination fit in the ambiguity of your post. With Exchange of Collateral, there is a point of betterment. In order to answer your questions, we'll need to know what state governs the lease agreement.

[JMD]

Recommendation: Get the new engine in the 550! The cost to you is "warranty"! Take car to another dealer to get the other issue fixed being that the current dealer can't seem to get it right.