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      03-23-2010, 07:39 PM   #1
brianGriffin17
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Lease buyout question

Hello,

I am coming to the end of the 3yr lease (10k miles/yr) on my 2007 e92 335. I currently have 20000 miles so I am well shy of the mileage limit. The buyout on my car is $30k, and I do plan on keeping the car as I love this car and have such low mileage. I am not interested in buying/leasing a new one.

The dealer is advising that I buyout the car from them, rather than BMW because they can "certify" the car, which will extend my warranty to 6 yrs and 100000 miles. He said he can probably offer me the buyout close to what BMW is offering, and if he can certfy the car he can offer 0.9% for 24 months. I don't think they can "certify" the car as I have done so many mods to the car I have lost count. Don't I retain the standard 4yr/50k mile warranty regardless of what I do? I could always buy an extended warranty from a third party next year I suppose.

I am in a position to just buyout the car, but 0.9% financing would be nice.

He will provide a quote if I give him my mileage, but I have read most people do not divulge the mileage, even if it is low.

Any advice as to what I should do?
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      04-13-2010, 04:36 PM   #2
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Are they offering you any discount off of the 30K balance?
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      04-13-2010, 05:00 PM   #3
jcarlucci1
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They wont certify it with mods..waste of money anyway. I just purchased my lease, negotiated about $2500 off residual with dealer. BMW corporate will not negotiate so definitely go through dealer
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      04-13-2010, 05:50 PM   #4
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Quote:
Originally Posted by jcarlucci1 View Post
They wont certify it with mods..waste of money anyway. I just purchased my lease, negotiated about $2500 off residual with dealer. BMW corporate will not negotiate so definitely go through dealer
So to buy the of-lease you can forgo the CPO but still receive discount on agreed residual? Is this typical?
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      04-13-2010, 06:06 PM   #5
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Quote:
Originally Posted by HPIA4v2 View Post
So to buy the of-lease you can forgo the CPO but still receive discount on agreed residual? Is this typical?
makes sense...usually the residual is higher than the actual expected sale price of the car (plus the dealer would still have to technically buy the car from bmw and then have the additional overhead)
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      04-13-2010, 06:33 PM   #6
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Quote:
Originally Posted by jcarlucci1 View Post
They wont certify it with mods..waste of money anyway. I just purchased my lease, negotiated about $2500 off residual with dealer. BMW corporate will not negotiate so definitely go through dealer
Did they know the mileage on your vehicle beforehand? I am in the same boat as Brian above, with way low mileage.
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      04-13-2010, 06:34 PM   #7
HPIA4v2
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Quote:
Originally Posted by Freakazoid View Post
makes sense...usually the residual is higher than the actual expected sale price of the car (plus the dealer would still have to technically buy the car from bmw and then have the additional overhead)
Well, I was always wondering if it's makes sense to lease (eventhough I intent to buy the car for sure); since the MF is very low with MSD.
The pluses:
1)discount on residual at the end of lease
2) no capital to commit early on
3) MF APR seems lower than regular financing (which credit union charge 3.49% at best)

The only bad things:
1)Fees, like acq/doc etc.

Again I am not comparing lease vs buy, I am trying to see if lease then buy makes sense then straight buy.
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      04-13-2010, 08:06 PM   #8
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rule #1: never buy out your lease

/thread
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      04-16-2010, 10:01 PM   #9
aesdana
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Quote:
Originally Posted by Vudoo4u2 View Post
rule #1: never buy out your lease

/thread
Why?
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      04-17-2010, 10:28 AM   #10
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Quote:
Originally Posted by aesdana View Post
Why?
Only thing I can think of is prob because if you don't have the cash, you now simply are financing a used car, which tends to have higher interest rate. (Therefore you lost money.)
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      04-17-2010, 12:29 PM   #11
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Quote:
Originally Posted by zenmaster View Post
Only thing I can think of is prob because if you don't have the cash, you now simply are financing a used car, which tends to have higher interest rate. (Therefore you lost money.)
this is true. however, in purchasing a new car, you will lose more on depreciation.
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      04-17-2010, 12:37 PM   #12
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Quote:
Originally Posted by aesdana View Post
Why?
not sure if that was directed toward my question.
I never lease in the past and thought about doing it then buy, with the reasoning listed above in my previous post, BUT....

http://www.edmunds.com/advice/leasin...5/article.html

This would change your view on lease all together, the argument "you don't need capital to drive new car with lease" is just dead wrong, you borrow money on both the depreciation and net-Capital and residual, then the sales tax is not on the net-capital (agreed price) but all three, WOW.

Buy for me again this time, maybe not for others for different reason but that reason better be a good one.
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      04-20-2010, 01:26 AM   #13
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Quote:
Originally Posted by aesdana View Post
Why?
from a combination of worse interest rates, and poor depreciation calculation, it never financially makes sense to buy out your lease. you are always better off getting the same vehicle in a new lease, or buying a new car with whatever financing promotions are available
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