Should I buyout my lease?

Astroboy · 10-04-2011, 05:07 PM

So my lease is due soon and I have a $3500 penalty (over mileage and some damage). Deciding if I should buy the car or not?

It's an 08 328i, never had one issue with it.

Buyout is 23k+tax, I'd say market value is like 20k.

Another option is lease a 328i executive edition, for the same payment and the dealer says verbally they "should" be able to absorb the penalty.

I guess with buying the risk is something major goes wrong like the valve ticking, then I have a huge repair bill. But if I buy it, at least after 3 years, I still own it and it has some value vs. leasing another. I drive alot, so leasing is probably not a good idea anymore.

Third option, return car, pay penalty and buy a winter beater for now.

How do I decide???

KCX_335xi · 10-04-2011, 07:14 PM

What rates are you looking at for leasing and financing ?

I was in a similar situation with my 06 330xi in 2008, and since I was a returning BMW finance client, I got a financing rate of 0.5% and just ended up buying a brand new 335xi...

Now is a great time to get a new 2011 model, as they are making room for new models...

Glim · 10-04-2011, 11:18 PM

Depends if you are happy with it

You could look at a CPO 2008 purchase for the same price as your lease buy out if you wanted peace of mind and in the end you own the car and have equity on your next purchase.

Or... keep it for a few more years and have no car payments

ZuerstBMW · 10-04-2011, 11:32 PM

tell the dealer that you will lease a new one from them only if they waive the penalty fee for over mileage and see what they say.

teamadobo · 10-05-2011, 05:27 AM

What damages you have on the car?

nospleeny · 10-05-2011, 10:03 AM

Don't put yourself in a financial bind over a vehicle. Do what you think is best for your future financial situation.

Astroboy · 10-05-2011, 11:09 AM

Dealer will absorb the penalty if i lease another...

Thing is I drive alot, hence the penalty for over mileage...so leasing probably not a good idea anymore?

Damage is crack windshield and repaint sideksirt..not much..under a grand...most of the penalty is mileage.

So if leasing isn't good b/c I need lots of mileage...I guess I either buy out the car or get a beater. I love the car, but never owned a bmw out of warranty so I guess its fear of the unknown. Never had one issue though *knock on wood*

BenTrovato · 10-05-2011, 04:49 PM

If you like it keep it!

On the other hand, there are GREAT deals on '11 e90's right now... I would even negotiate extra mileage on a new lease.

aspiring335 · 10-05-2011, 06:29 PM

Either way, you are paying for the penalty. They can't work magic, so by "absorbing" the penalty they are simply giving up some of their profit / using factory incentives, which in turn reduces the amount by which they can discount the new car. Absorbing it just means you are paying a higher lease payment on the new car for the entire term of the lease. Not necessarily a terrible thing, but you should be aware that this is what's happening.

Quote:

Originally Posted by Astroboy

Dealer will absorb the penalty if i lease another...

Thing is I drive alot, hence the penalty for over mileage...so leasing probably not a good idea anymore?

Damage is crack windshield and repaint sideksirt..not much..under a grand...most of the penalty is mileage.

So if leasing isn't good b/c I need lots of mileage...I guess I either buy out the car or get a beater. I love the car, but never owned a bmw out of warranty so I guess its fear of the unknown. Never had one issue though *knock on wood*

SGxi · 10-06-2011, 11:01 AM

Just keep in mind if you are driving a lot and the mileage is piling up, you will be paying for quite a few wear-and-tear items soon and there may be some unforeseen repairs you may need to do.

My out-of-warrenty E90 already got me stranded twice.

mwerkes · 10-06-2011, 11:02 AM

I'm only telling you what you want to hear. Don't buy. Just get a new car!!

slenfe · 10-06-2011, 07:09 PM

dealer will never absorb any cost, they will simply move numbers around and make them looks better, given you need to drive high mileage lease might not be your best option in your case perhaps getting the same car again might not be worth paying the premium on new car depreciation.

Checking lease buster there you can spot cars with very low mileage and with extra KMs on lease return ie some you can drive for 30-40 K a year with no extra penalties, I always thought if I am in need to drive such mileage this will be an option to explore.

granted that BMW CPO up to 160 K is an indication that they are comfortable with such mileage on the car, so I think it might be less risky to go that far.

Good luck

Astroboy · 10-06-2011, 09:35 PM

Thanks for the advice everyone. Decided I won't buy out the car. I think I will just get a beater until I make up my mind. No point rushing.

Bajan Loch · 10-07-2011, 11:53 AM

isn't your cracked windshiled covered by insurance?

10-04-2011, 05:07 PM	#1
Astroboy Second Lieutenant 5 Rep 272 Posts Drives: 2013 328i Join Date: Jun 2008 Location: Toronto, ON iTrader: (1)	Should I buyout my lease? So my lease is due soon and I have a $3500 penalty (over mileage and some damage). Deciding if I should buy the car or not? It's an 08 328i, never had one issue with it. Buyout is 23k+tax, I'd say market value is like 20k. Another option is lease a 328i executive edition, for the same payment and the dealer says verbally they "should" be able to absorb the penalty. I guess with buying the risk is something major goes wrong like the valve ticking, then I have a huge repair bill. But if I buy it, at least after 3 years, I still own it and it has some value vs. leasing another. I drive alot, so leasing is probably not a good idea anymore. Third option, return car, pay penalty and buy a winter beater for now. How do I decide???
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10-04-2011, 07:14 PM	#2
KCX_335xi Major 62 Rep 1,196 Posts Drives: 2018 M4 \| 2013 e70 X5 Join Date: Apr 2011 Location: Oakville, ON iTrader: (14)	What rates are you looking at for leasing and financing ? I was in a similar situation with my 06 330xi in 2008, and since I was a returning BMW finance client, I got a financing rate of 0.5% and just ended up buying a brand new 335xi... Now is a great time to get a new 2011 model, as they are making room for new models...
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10-04-2011, 11:18 PM	#3
Glim Captain 21 Rep 780 Posts Drives: 2006 330i & 2013 X5 35i Join Date: Jun 2011 Location: Victoria, BC iTrader: (0)	Depends if you are happy with it You could look at a CPO 2008 purchase for the same price as your lease buy out if you wanted peace of mind and in the end you own the car and have equity on your next purchase. Or... keep it for a few more years and have no car payments
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10-04-2011, 11:32 PM	#4
ZuerstBMW ¡Viva España! 373 Rep 7,803 Posts Drives: 2023 230i Mineral White Join Date: Mar 2006 Location: Apollo Beach, FL. iTrader: (68)	tell the dealer that you will lease a new one from them only if they waive the penalty fee for over mileage and see what they say. __________________ 23 G42 230i Mineral White Cognac, Aluminum With Mesh Effect Interior Trim MODS Clear Guard, 15% Ceramic Tint, Floating Caps
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10-05-2011, 05:27 AM	#5
teamadobo Captain 43 Rep 608 Posts Drives: 328i Xdrive Join Date: Nov 2009 Location: Ontario Canada iTrader: (3)	What damages you have on the car?
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10-05-2011, 10:03 AM	#6
nospleeny Captain 21 Rep 970 Posts Drives: 2012 528xi Join Date: Feb 2008 Location: Toronto iTrader: (0)	Don't put yourself in a financial bind over a vehicle. Do what you think is best for your future financial situation.
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10-05-2011, 11:09 AM	#7
Astroboy Second Lieutenant 5 Rep 272 Posts Drives: 2013 328i Join Date: Jun 2008 Location: Toronto, ON iTrader: (1)	Dealer will absorb the penalty if i lease another... Thing is I drive alot, hence the penalty for over mileage...so leasing probably not a good idea anymore? Damage is crack windshield and repaint sideksirt..not much..under a grand...most of the penalty is mileage. So if leasing isn't good b/c I need lots of mileage...I guess I either buy out the car or get a beater. I love the car, but never owned a bmw out of warranty so I guess its fear of the unknown. Never had one issue though knock on wood
	Appreciate 0 Quote

10-05-2011, 04:49 PM	#8
BenTrovato Driver 37 Rep 1,577 Posts Drives: e92 335i Join Date: Aug 2010 Location: Toronto iTrader: (4)	If you like it keep it! On the other hand, there are GREAT deals on '11 e90's right now... I would even negotiate extra mileage on a new lease.
	Appreciate 0 Quote

10-06-2011, 11:01 AM	#10
SGxi Major General 158 Rep 6,805 Posts Drives: E90 328xi Join Date: Oct 2006 Location: Toronto iTrader: (17) Garage List 2007 328xi [0.00]	Just keep in mind if you are driving a lot and the mileage is piling up, you will be paying for quite a few wear-and-tear items soon and there may be some unforeseen repairs you may need to do. My out-of-warrenty E90 already got me stranded twice. __________________ MY07 A22 E90 N52Nxi
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10-06-2011, 11:02 AM	#11
mwerkes Banned 5 Rep 43 Posts Drives: none now :( Join Date: Sep 2011 Location: Bay area iTrader: (0)	I'm only telling you what you want to hear. Don't buy. Just get a new car!!
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10-06-2011, 07:09 PM	#12
slenfe Private First Class 1 Rep 120 Posts Drives: e90 330i Join Date: Jun 2009 Location: Milton iTrader: (0)	dealer will never absorb any cost, they will simply move numbers around and make them looks better, given you need to drive high mileage lease might not be your best option in your case perhaps getting the same car again might not be worth paying the premium on new car depreciation. Checking lease buster there you can spot cars with very low mileage and with extra KMs on lease return ie some you can drive for 30-40 K a year with no extra penalties, I always thought if I am in need to drive such mileage this will be an option to explore. granted that BMW CPO up to 160 K is an indication that they are comfortable with such mileage on the car, so I think it might be less risky to go that far. Good luck
	Appreciate 0 Quote

10-06-2011, 09:35 PM	#13
Astroboy Second Lieutenant 5 Rep 272 Posts Drives: 2013 328i Join Date: Jun 2008 Location: Toronto, ON iTrader: (1)	Thanks for the advice everyone. Decided I won't buy out the car. I think I will just get a beater until I make up my mind. No point rushing.
	Appreciate 0 Quote

10-07-2011, 11:53 AM	#14
Bajan Loch Private First Class 1 Rep 189 Posts Drives: E90 A22 N52N Join Date: Mar 2011 Location: GTA, Ontario iTrader: (2)	isn't your cracked windshiled covered by insurance?
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