Extending a lease

[paradocs98]

Anyone have advice on extending a BMWFS lease? The lease on my 2011 M3 will come due this January. Not much out there is tempting me to switch cars. Options are to buy the car at end of lease, or possibly extend the lease by another year.

Has anyone done this, extending their lease? Do payments remain the same? Ideally, since the monthly payments for the initial lease term were based on that amount of depreciation over 36 months, BMWFS would recalculate a smaller monthly payment based on the minimal depreciation encountered from 36 months to 48 months. Is this the case, or would that just be too perfect?

[///M Ryder]

I'm in the same boat as you so here's what I've gathered.......you'll essentially start a new lease based on the residual at turn in time. Keep in mind that a 12 month lease will be higher than a 36 month. I think you can only extend your current lease for 30-60 days. With this said your new monthly payment should be lower but if you do 12 months it won't be drastically lower. So with all your mods why don't you just buy the car? Negotiate a price lower than the residual and drive home happy..........Phil

[geneatals]

post #9 in particular in this thread:

http://www.m3post.com/forums/showthread.php?t=716423

[Ezio]

idk man at the point of extending the lease you got more than half the car payed off, i would do a buyout. personally.

[positiveions]

Don't extend. I would either buy the car, or find something else.

[ksoze]

The aggressive lease deals at that time had some pretty high residuals making a buyout not as attractive three years later.

[Techjunkie666]

Buyout the car or lease another M. Why not lease a C63 or RS5? If you dont like them, that will just make you miss your M3 more.

By then the new M3/M4 should be out and they would have worked out most issues with them and you can lease another M3/M4.

[MSPORTWORLD]

Originally Posted by ///M Ryder

I'm in the same boat as you so here's what I've gathered.......you'll essentially start a new lease based on the residual at turn in time. Keep in mind that a 12 month lease will be higher than a 36 month. I think you can only extend your current lease for 30-60 days. With this said your new monthly payment should be lower but if you do 12 months it won't be drastically lower. So with all your mods why don't you just buy the car? Negotiate a price lower than the residual and drive home happy..........Phil

Same boat here for me as well...plan to negotiate the accelerated residual buyout price which is lower than the initially calculated residual, dealers should have this new buyout price 90 days before lease end.

[Dave07997S]

Originally Posted by paradocs98

Anyone have advice on extending a BMWFS lease? The lease on my 2011 M3 will come due this January. Not much out there is tempting me to switch cars. Options are to buy the car at end of lease, or possibly extend the lease by another year.

Has anyone done this, extending their lease? Do payments remain the same? Ideally, since the monthly payments for the initial lease term were based on that amount of depreciation over 36 months, BMWFS would recalculate a smaller monthly payment based on the minimal depreciation encountered from 36 months to 48 months. Is this the case, or would that just be too perfect?

I didn't think BMWFS extends leases out to 12 mos. Hell I would have done that. They only gave me the option to extend the lease upto 90 days if I had a order in on another vehicle.

Ended up selling my 2011 M3 for a 2013 E92 M3 that is the exact same car.

Dave

[Lucrecio84]

Does anyone know if it matters if you go over the mileage limit if you plan on buying the car at the end of the lease term anyways?

[okusa]

Originally Posted by Lucrecio84

Does anyone know if it matters if you go over the mileage limit if you plan on buying the car at the end of the lease term anyways?

Doesn't matter.

[///M Ryder]

Originally Posted by Lucrecio84

Does anyone know if it matters if you go over the mileage limit if you plan on buying the car at the end of the lease term anyways?

This could actually help you. Since the car will have additional miles the residual value should be lower. Keep in mind this is only in theory ............Phil

[Alpine300zhp]

Originally Posted by ///M Ryder

This could actually help you. Since the car will have additional miles the residual value should be lower. Keep in mind this is only in theory ............Phil

Beware. If you try to negotiate a purchase price that is less than residual BMWFS will tack on over mileage penalty to whatever reduced price they offer. If you buy it for residual then you avoid paying for the extra miles.

[Dave07997S]

Originally Posted by Alpine300zhp

Beware. If you try to negotiate a purchase price that is less than residual BMWFS will tack on over mileage penalty to whatever reduced price they offer. If you buy it for residual then you avoid paying for the extra miles.

I tried this with BMWFS and they didn't budge...the residual for the car was $41K for a car that they could easily sell for $49k. They wanted me to walk away...

Dave

[slalomfever]

you can extend 2 month with no resistance. after that, you can extend another 4 months as long as you have a pending order on a new vehicle. (a total of 6 months on the same monthly payment)

I'm not really sure on leasing longer than that. BMW FS holds "special" rates and residuals which usually is on the higher side.

[lve2xlr8]

The thing that sucks is your residual doesn't change, you're better off selling your car private party as I'm sure it's worth more than your residual. The other thing that sucks is if, say, you have a 36 month lease, you're going to have to pay another year of registration to go beyond it.

[zeeman335]

Has anyone ever bought the car out at the end of lease period and actually sold it for more than residual? Making a couple extra grand?

[slalomfever]

Originally Posted by zeeman335

Has anyone ever bought the car out at the end of lease period and actually sold it for more than residual? Making a couple extra grand?

this rarely happens unless the car has really low miles

[slicer]

I extended my last BMW lease by approximately 6 months. As stated above, the first few months was easy, getting BMW FS to agree to the last 3-4 months was more difficult. It ended up being a good deal. Each payment you make continues to lower your residual by the same amount as all of your previous payments. It's just like a loan; a portion of the payment goes towards interest and the remainder goes towards lowering the residual (or in loan terms; your outstanding loan balance). A lease is simply another form of finance. People get hung up on the idea that leases are a "bad deal" but there are instances when the interest rate on a lease are very low. I was paying a little more than 0.5% interest on the lease I extended which was far better than any loan. It was in my best interest to extend as long as possible.

[slicer]

Originally Posted by zeeman335

Has anyone ever bought the car out at the end of lease period and actually sold it for more than residual? Making a couple extra grand?

I have on multiple occasions. Remember that a low residual means that you paid higher monthly payments. A high residual results in lower monthly payments.... The best way to do it is to find a buyer and conduct the transaction through the dealership. You can legally avoid a portion of sales tax that way. Otherwise you have to buy the car from BMW FS, pay tax on the purchase price, then sell it to the third party. A dealership can buy it from BMW FS at your buy-out price for you tax free and sell it to the third party. The difference between your selling price less your buyout price and dealer fees (usually around $500) is money in your pocket.

[slicer]

Originally Posted by lve2xlr8

The thing that sucks is your residual doesn't change, you're better off selling your car private party as I'm sure it's worth more than your residual. The other thing that sucks is if, say, you have a 36 month lease, you're going to have to pay another year of registration to go beyond it.

The residual does change when you extend the lease. It is reduced with each monthly payment.

[M3LISSA]

Originally Posted by slalomfever

you can extend 2 month with no resistance. after that, you can extend another 4 months as long as you have a pending order on a new vehicle. (a total of 6 months on the same monthly payment)

I'm not really sure on leasing longer than that. BMW FS holds "special" rates and residuals which usually is on the higher side.

what he said ^ about a pending order is true as well.... I believe 6 months is the max...