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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > Can you lease a pre-owned BMW?



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      03-20-2008, 07:35 AM   #1
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Can you lease a pre-owned BMW?

I am currently leasing an e90 which is about to end soon. Can one lease a certified pre-owned BMW? Does this mean lower payments?

Anyone done this before? I am not talking about taking over someone elses lease, I am talking about actualy leasing a car that is at the dealer's certified pre-owned lot.

thanks!
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      03-20-2008, 07:41 AM   #2
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Yes, it can be done (did it with my MZ3)! As to the cost - of course it depends on what you select...
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      03-20-2008, 08:02 AM   #3
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Agree that it can be done, but the payments may not be that much better than leasing a new vehicle.
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      03-20-2008, 08:10 AM   #4
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I'm all for leasing new cars and the debate rages about that. But leasing a used car!?!?!? Even I'll jump on the band wagon of just how financially stupid that is. No offense to the OP in now way.

But a 3 series if it is certified Pre-Owned should be financed since nearly all of them will be sub 35k. At that point the 3k(tax, title, etc. etc.) you'll have to shell out on a lease, might as well be the downpayment since you payment will be a lot more identical then during a new car purchase.

Maybe MAYBE leasing a slightly used 6-12/mo old, w/very low miles 550i, M5, 650i, M6 or 760Li might make sense but not a 3 series.

Also if you are thinking about re-leasing your 325i, please don't. You're buyout should be somewhere between 20-25k, you'd be better off negotiating a price that includes the certified pre-owned process/renewing your warranty. What ever you paper work says is by no means set in stone. Say your paperwork says 23k will be you buyout at lease end and the cars overall worth is 25k. Well your stealership will call BMWNA to get their buy price and they'll buy the car and resell it to you. Now their buy price from BMWNA may be 18k. The certified process takes somewhere around 2k I think, but thats close. So 20k means the car is certified. Now you have a 3k gap between your paperwork and what they bought it for. You may or may not know that figure but negotiating is allowable. Now depending on current APR's and what not will be the deciding factors. Many have said they've leased, bought at lease end for less then the paperwork said then resold themselves and made a profit or money back they've already spent. But re-leasing it is pretty much the worth thing you can do considering you have tons of options.
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      03-20-2008, 08:50 AM   #5
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Quote:
Originally Posted by darkcloud View Post
I'm all for leasing new cars and the debate rages about that. But leasing a used car!?!?!? Even I'll jump on the band wagon of just how financially stupid that is. No offense to the OP in now way.
It's not stupid if done right. My friend leased a used vehicle, while under warranty at half the cost to lease a new one. The secret of course it to strike a good purchase prices. The residual drop decreases with vehicles age. In another words leasing a brand new vehicle for 3 years is more expensive than leasing a 1 year used vehicle for 3 years simple because the value loss between year 1-4 is less than between 0-3.

I am not talking about leasing a 5 year vehicle that's guaranteed to need work done.

You can have a bad financial deal regardless of lease new/buy new/lease old. And you can have a good one as well for each of those.
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      03-20-2008, 09:33 AM   #6
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My wife leased a CPO Z3 a few years back, she didn't put apenny down, just signed and drove home..

when my lease is up I was thinking of leasing a year or two old x5 or x6

The problem with leasing a CPO is that BMW usually does not offer much lease support, therefore the rates are not favorable.
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      03-20-2008, 09:42 AM   #7
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I'm leasing a 2007 335i E90 for $528/mo +10% PA Lease Tax. The car was a dealer car and had 12k miles on it when I began the 2 year lease in December. I'm allowed 15k miles per year and the car has everything besides sport and nav. How is that not a good deal?
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      03-20-2008, 09:45 AM   #8
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Quote:
Originally Posted by Biostockman View Post
I'm leasing a 2007 335i E90 for $528/mo +10% PA Lease Tax. The car was a dealer car and had 12k miles on it when I began the 2 year lease in December. I'm allowed 15k miles per year and the car has everything besides sport and nav. How is that not a good deal?
Perfect deal... and that reinforces my point. Every situation is different, throwing out random remarks how "leasing is bad" "financing is bad" "leasing used is bad" without knowing the nuts and bolts makes no sense.
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      03-20-2008, 09:58 AM   #9
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Quote:
Originally Posted by noro View Post
Every situation is different, throwing out random remarks how "leasing is bad" "financing is bad" "leasing used is bad" without knowing the nuts and bolts makes no sense.
QFT!!! Well said.
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      03-20-2008, 10:11 AM   #10
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Quote:
Originally Posted by noro View Post
It's not stupid if done right. My friend leased a used vehicle, while under warranty at half the cost to lease a new one. The secret of course it to strike a good purchase prices. The residual drop decreases with vehicles age. In another words leasing a brand new vehicle for 3 years is more expensive than leasing a 1 year used vehicle for 3 years simple because the value loss between year 1-4 is less than between 0-3.

I am not talking about leasing a 5 year vehicle that's guaranteed to need work done.

You can have a bad financial deal regardless of lease new/buy new/lease old. And you can have a good one as well for each of those.
purchase price has the least to do with it. The most important factors are residual and money factor. Even if I gave you a crazy buy price on a 7 series or an M3 I have on my CPO lot it would still cost a shitload of money to lease. You have to lease a car that has a substidized lease rate and high residual to get a good deal.
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      03-20-2008, 11:15 AM   #11
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Can be done. But you may be surprised at new lease deals.
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      03-20-2008, 10:36 PM   #12
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thanks guys..

I was never planning to re-lease my current vehicle. I was thinking of getting into a used 335i vert or a new 335i coupe. Anyhow, I put only 29k miles on my e90 out of the allowed 36K so my car's value is at $23k-ish (from KBB) and the buy-out price is 20k. Can i buy/sell and make the 3k profit?
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      03-20-2008, 10:44 PM   #13
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Unlikely. You can ofcourse buy, but unlikely to make profit.

Unfortunately its not that simple. I think its not worth risking for only $3K potential profit.
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      03-21-2008, 08:24 AM   #14
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Quote:
Originally Posted by skimo View Post
thanks guys..

I was never planning to re-lease my current vehicle. I was thinking of getting into a used 335i vert or a new 335i coupe. Anyhow, I put only 29k miles on my e90 out of the allowed 36K so my car's value is at $23k-ish (from KBB) and the buy-out price is 20k. Can i buy/sell and make the 3k profit?
Kbb has nothing to do with your lease.

when you signed your lease, there was an agreed upon residual value at lease end. that price is what you may buy the car for.

Also, if you did buy the car at lease end, there would be tax implications that would most likely negate any profit you are possibly assuming you might make.
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      03-21-2008, 08:48 AM   #15
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Quote:
Originally Posted by LI E90 View Post

Also, if you did buy the car at lease end, there would be tax implications that would most likely negate any profit you are possibly assuming you might make.
+1

The 6.25% TX sales tax you'll pay on your $20k purchase (buy-out) will eat up almost half of your *potential* $3k profit.

As others have said, it's probably not worth the risk to try to buy & flip it if at BEST you're only going to make $1500 - $2000 (assuming you're able to sell it right away).
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      03-21-2008, 10:37 AM   #16
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I leased a CPO Factory Executive 328xi

Factory Executives get new car lease rates. My payment is $450 with tax and for the same vehicle new it would have cost $650. The vehicle had 14K miles on it and I am leasing it for two years so it is covered under warranty. I plan on turning it in at lease end so I don't have any fears.
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      03-21-2008, 11:08 AM   #17
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Quote:
Originally Posted by Jonnywad View Post
Factory Executives get new car lease rates. My payment is $450 with tax and for the same vehicle new it would have cost $650. The vehicle had 14K miles on it and I am leasing it for two years so it is covered under warranty. I plan on turning it in at lease end so I don't have any fears.
So how are miles per year allocated in your scenario?

Meaning a new one might have 10,000 miles per year. But yours already has 14,000 miles, so how does that part work in your lease agreement?
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      03-21-2008, 11:09 AM   #18
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my $0.02:
you can lease an old car. if BMWFS accepts it will be more expensive than a brand spanking new car!

the best way is to go through an indie lease company or a bank. my friend got a 3 year old 7 series, his lease was 400 a month with no down. his boxter was the same deal too
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      03-21-2008, 11:40 AM   #19
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Quote:
Originally Posted by GreenThree View Post
So how are miles per year allocated in your scenario?

Meaning a new one might have 10,000 miles per year. But yours already has 14,000 miles, so how does that part work in your lease agreement?

I get 12K miles per year. I was a little confused how they figured the residual but BMW has a standard formula or so I am told. The only way to get the lease rate is if it is an executive vehicle meaning it was never registered to anyone other than BMW.
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      03-21-2008, 01:34 PM   #20
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Quote:
Originally Posted by Jonnywad View Post
Factory Executives get new car lease rates. My payment is $450 with tax and for the same vehicle new it would have cost $650. The vehicle had 14K miles on it and I am leasing it for two years so it is covered under warranty. I plan on turning it in at lease end so I don't have any fears.
yup - I missed out on a loaded montego e92 for $38k (it had a lot of miles on it - but since i was gonna lease it, i didnt really care)
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