2008 M3 Sedan 32,103 buyout..worth it ?

[LehmanZ06]

Hello,

First post here.

I have a 2008 M3 Sedan. 42,700 miles currently. 2 payments left to go on a lease (36 months). Payments are 929 per month....with 4800 down which included my first payment (this info probably not needed).

Anyway...question is should I buy the car for the Residual value of 32,104.

Car has a premium package homelink, bluetooth, leather, Sirius. 18" wheels
6 speed manual, no idrive, or fancy shocks or comfort access

Thing is if I were to get a new one I think I would order it identical.
White with red interior.

Minor chip on windshield, caused by a freaking acorn from a tree. Small paint scrape behind rear wheel....like a 2" line that I touched up with touch up paint.

Car runs good, and just had recently like one bad Vanos something sensor...fixed at dealer no big deal. Door locks went under warenty....acuators in doors broke covered under warrenty.

I have like 11,000 left on front brakes, and like 12-14,000 miles left on rear, front tires one third left, rears over half left...(yes I have bought new tires in the past).

I love this car. Is it worth it to buy it. A buddy of mine car do the maintenence brakes...etc. But if something in the engine goes....then I get the hose at the dealer. still with like 7,000 left of warrenty......

Advice ?

Thanks

PS Wife's good friend is a finance mgr. at BMW dealer that I got my car and my wife's car through. The wife's friend thinks it's a bad idea to buy the car, as the service is expensive. Says I can get into the same car for like $100 a month less (a new one).....also said vert was cheaper than Sedan due to higher residual value, but I need 4 doors. (Sedan=Vert or so she said on lease)

[koxal]

what was the miles per year allowed in your lease?

[inter1032]

buy car
sell car
profit
????
get new car

[LehmanZ06]

15,000 miles per year. So I am right there.

So, Inter 1032 are you saying...buy the car....maybe drive it up to 48,000 miles and then sell it.....think I could turn a profit ?

Or rather just drive it.........into the groud, or until I don't want it anymore ?

[Ty Vil]

2nd BMW Client Advisor chiming in.

Walk away...

[MSPORTWORLD]

Originally Posted by inter1032

buy car
sell car
profit
????
get new car

I concur...

You should be able to sell your car for about $40k private party KBB. Use the money from sale to buy another.

[LehmanZ06]

Went to car max yesterday.

They offered me 36,000 for the car. Which I think means Retail value of car is about 40,000.

The way I look at it is I have two more payments and should have 45,000 to 46,000 miles on the odometer when the lease is over.

So if I buy the car then I still have a warrenty for another 4000 miles.

I need something to drive everyday and my Honda S2000 or my GT3 don't cut it (to scared to drive the GT3 everyday--don't want to get miles on it, and it's too loud).

So, why not buy the car. It has been a good car and I didn't abuse it. If I change my mind later----and sell it or trade it....well I won't be upside down really...just flexible with what I want to do. If I lease a new one....then I am committed for like 3 more years, and if I buy a new car.....it takes one heck of a depreciation hit right away.

Smart move buying the car at the end of the lease right ?

[piloto]

If you're going to consider a private party sale (assuming you're going to buy it at lease end), look around and see what others are going for, particulary CPO ones from dealer. The fact is that most buyers are going to opt for the coupe (based on sales history), so you already have a disadvantage there (fwiw my ED order is for a sedan). Also, assuming you're going to try and sell the car for near $40K, many are likely to find CPO deals that don't cost more than that. Then there is the issue of not many folks having $40K cash to go out and buy a complex German used car that's almost out of warranty.

So, in my opinion, it would be hard to sell it on the private market. But, if Carmax's offer stands, then maybe it's not so bad. However, wouldn't you have to pay sales tax on the $32K that you'd buy it out for? And if so, then does that put you close to $36K? May not be worth it.

I'd say buy it out only if you plan to keep the car for another 5-6 years or more. But as usual, your mileage may vary.

[edcvin]

I would definitely buy the car. You are buying under market value and you can still enjoy the car for a while, sell eventually and do okay with the sale price then. Sounds like a win to me and even more considering you took good care of the car.


-Vin

[CominAtYaBich]

buy it and give it to me, I'll use it as my dd. i will also accept your gt3

[mdosu]

Originally Posted by vinnycg

I would definitely buy the car. You are buying under market value and you can still enjoy the car for a while, sell eventually and do okay with the sale price then. Sounds like a win to me and even more considering you took good care of the car.


-Vin

how's he buying under market value? He's already paid 3 years worth of lease on it...so he paid about $36k on it already, $36 + $32 = $68k, what was sticker on the car? My guess is it was probably $67-$68k, my fully loaded 08 E90 was $67k. So he basically paid sticker....BMW isn't stupid, the price they offered him is an "above market" or "at market" price as they want him to ultimately pay sticker for that car.

I say if you really want to keep it, let the lease go, you can pick up a 08 E90 with ALOT less miles for less than $44k right now. But then again, I'm the type of person who refuses to buy a new car at sticker, no way no how, I think it's all a rip off considering it's a depreciating asset that takes the largest depreciation hit in it's first 2 years.

Not that it helps, but I think a lease is a really bad deal if you plan on buying out the lease... but again I also think leases in general are a bad deal if you plan on keeping the car.

The most important question for the OP is does he plan on keeping the car for at least 8 more years after the lease ends?

[LehmanZ06]

Car was leased by my business originally, but I want to cut business expenses, and I pay a good bit of tax on the personal use of the car.

What's done is done with the lease. Car MSRP for like 58k, and in April of 08 I got like 1000 off MSRP for the lease.....not a great deal, but not so bad at the time.

But now I look at the car, and it drives as good as new, but is not a new car....so I don't worry about it or anything. Thing is I figure is that if I buy it for below current wholesale value.....then I can drive it and enjoy it, and barring catastrophic faillure----that I can get rid rid of it at any time and not take a financial hit.

I originally paid 929(that's with tax for a 15,000 lease with 4,800 out of pocket which included first payment....no security....and I did happen to get out of a STI that I owned that wasn't quite paid off at the time.

[pbonsalb]

If you like your car and want to reduce expenses, then don't pay the depreciation on a new one. Keep yours. I would hedge my bet by having it CPO'd. That usually costs around $2000, but may be more for an M3. It would give you a decent warranty for years 5 and 6. Extended maintenance is over $3000 and may or may not be worthwhile, but no one yet knows what years 5 and 6 look like for these cars. I bought a CPO, but not extended maintenance. However, I can probably do the maintenance myself.

If you want a new car under warranty and don't mind paying every month forever, then lease another one.

[1MORELAP]

If CarMax is offering you 36K, then you have $4K of equity. Just lease a new one, put $4k down (your car) which should put your lease payment in 700's, so about $200 per month less. You get loyalty rate as well.

Do ED and payment goes down by another 100.

[igom3]

Originally Posted by 1MORELAP

If CarMax is offering you 36K, then you have $4K of equity. Just lease a new one, put $4k down (your car) which should put your lease payment in 700's, so about $200 per month less. You get loyalty rate as well.

Do ED and payment goes down by another 100.

+1