Lease ending - to buy or not to buy?

[masamune]

A sad day is coming in that my lease will be ending. I have a great attachment to the car (as does everyone here!) since I had an awesome ED trip with it. I have thought about it and I can't imagine another car I would get into at this point. The M3 is so much fun to drive, has all the options I want, and is extremely versatile. I just don't know of another car that can match all the points it offers and puts a smile on my face every day. With that said, I can't justify the approximately $50k residual on a 3 year old car that will have 36000 miles on it. And then with the new M3/M4 out soon, that will inevitably depreciate the car even more. Also, the new M3/M4 has not appealed to me much at all and honestly is not vastly different enough from my car for me to care.

So here's my specs:

2011 E93 LMB
Black Novillo interior
Aluminum Trim
DCT
19" 220M
ZCV
ZP2
ZCW
Nav

My options as I see it are:
1) Get another car, but what?
2) Buy it, but I think the residual is insane
3) Negotiate the residual or turn it in and buy it CPO'd?

Any suggestions?

[///M Ryder]

If you turn it in, you'll surely lose. If they CPO the car you can add another 2k to the price. As for your residual, it will be hard to get them to budge on it. I'm sure they know the car will bring 50k right now. The owners that come off lease right after the new car is released will have better leverage on the residual buyout. Tough decision for sure but if you are attached to the car go for it.................Phil

[Ezio]

my M3 is a 3 year lease. and has 2 years left. i payed it off when i picked up the car. i think my residual is like 42k. i cant see my self wanting to owe 40k+ on a car this old and outdated by then. maybe i can work them really hard on the residual in two years haha.

I can see where you are coming from. if i had a lot of money i would keep it and buy another car. the E9x m3 is a keeper for sure.

Do you like the new corvettes ? that might be a great car to get into.

I also am staying away from the m4 also.

[nicebraces]

My 2 cents ... Put money aside and close your eyes, ask yourself if you really like the car: if you even have the slightest hesitation, turn it back in ... BUT, if your baby still brings that wide grin everytime you get behind the wheel, well goddam keep it and enjoy every minute!

[Detroit M3]

keep it and definitely dont get the new corvette

[okusa]

Originally Posted by masamune

A sad day is coming in that my lease will be ending...Any suggestions?

As long as you are within the final 60 days of your lease, BMW will discuss a lease extension. Just call and find out the current offer. As long as the payment does not increase, that may be a perfect solution for you.

[masamune]

Thanks for the tips everyone. I am going to the dealership tomorrow for service and will talk to their sales people and see what they say about negotiating residual or extending the lease. I didn't think BMW would extend leases unless you are in a contract for a new car, but I could be wrong.

[okusa]

Originally Posted by masamune

Thanks for the tips everyone. I am going to the dealership tomorrow for service and will talk to their sales people and see what they say about negotiating residual or extending the lease. I didn't think BMW would extend leases unless you are in a contract for a new car, but I could be wrong.

Don't waste time talking to the dealer. They don't know anything and don't have any authority. From the BMW website "call BMW Financial Services Lease-end Representative at 1-800-959-4269 or send an email to leaseend@bmwusa.com."

[knolow]

Originally Posted by okusa

As long as you are within the final 60 days of your lease, BMW will discuss a lease extension. Just call and find out the current offer. As long as the payment does not increase, that may be a perfect solution for you.

Very interesting, is this true? I thought you can only extend a lease after your term is up only for like 3-6 months. Are you implying there is an ability to create longer terms?

[///M Ryder]

Originally Posted by knolow

Very interesting, is this true? I thought you can only extend a lease after your term is up only for like 3-6 months. Are you implying there is an ability to create longer terms?

They will only extend if you are waiting for a new car to arrive........Phil

[dagolfpro]

I'm Going to be in the same situation in October but my residual is less, but not by much. My decision will be, CPO or get third party warranty? I've heard horror stories about third party stuff.

[IzzyGray]

My 2 cents:

Don't look at the buy out as a "$50k purchase on a 3 year old car". I would look at it as "what other $50k car can I purchase that is as complete of a choice as the M3".

People get hung up about buying a used $50k car but for what the M3 is, there's nothing that I can think of that comes close to all of its strengths for $50k. This is assuming the M3 meets all your wants/needs. Used or new, I can't see any other option(for what I want/need) other than my M3. Or you can always buy a used 2008 in the 30's. :P

[positiveions]

You can negotiate the residual. When the time comes to turn it back in, go in the dealer, and tell them "i'll buy this car if you give me a better price than the residual". I did it on my old ZHP; I got 2k off.

[slicer]

Originally Posted by ///M Ryder

They will only extend if you are waiting for a new car to arrive........Phil

They will do short term extensions without a new car order. They extended my lease by three months with a quick call to BMW FS. Adding another 3 months (6 mos total) required more persuasion but they did it for me on my last M3 (again without a new car on order).

[NHman]

Originally Posted by slicer

They will do short term extensions without a new car order. They extended my lease by three months with a quick call to BMW FS. Adding another 3 months (6 mos total) required more persuasion but they did it for me on my last M3 (again without a new car on order).

I agree with slicer. I received a similar extension on my last lease without a commitment of a new vehicle. However, there is a drawback. The additional monthly payment truly becomes a rental fee. That is, the additional money is not applied to the residual.

BMW leases are good at producing low monthly payments based on the vehicle price but the obvious result is the higher buyout. You may want to contact several dealers including the forum sponsor to obtain a buyout quote.

[slicer]

Originally Posted by NHman

I agree with slicer. I received a similar extension on my last lease without a commitment of a new vehicle. However, there is a drawback. The additional monthly payment truly becomes a rental fee. That is, the additional money is not applied to the residual.

BMW leases are good at producing low monthly payments based on the vehicle price but the obvious result is the higher buyout. You may want to contact several dealers including the forum sponsor to obtain a buyout quote.

That should not be the case. The residual is reduced with each additional payment based on the same lease parameters as the original lease (money factor - interest rate, monthly amortization, etc.). I know this for a fact because I ended up buying the car out after the 6 month lease extension. My original lease was at nearly 0% interest so it was in my best interest to extend as long as possible. I would have extended longer than 6 months if they would have allowed it.

Of course BMW may have changed this at some point so I'm basing my statement off of my situation (lease from 2009 that expired in 2012). I would simply check with BMW FS to determine how your actual lease works.

[dagolfpro]

Originally Posted by positiveions

You can negotiate the residual. When the time comes to turn it back in, go in the dealer, and tell them "i'll buy this car if you give me a better price than the residual". I did it on my old ZHP; I got 2k off.

Where and when did you go to do this?

[positiveions]

Originally Posted by dagolfpro

Where and when did you go to do this?

A week before the due date, I went to return the car, the lease return department was going over my options, that's when the negotiation was done.

[dagolfpro]

Originally Posted by positiveions

A week before the due date, I went to return the car, the lease return department was going over my options, that's when the negotiation was done.

what dealership and date?

[positiveions]

Originally Posted by dagolfpro

what dealership and date?

WHen I returned my ZHP? It was December of 2007. Dealership: Shelly BMW. But you have to return it to the dealer that you leased it from.

[dagolfpro]

Originally Posted by positiveions

WHen I returned my ZHP? It was December of 2007. Dealership: Shelly BMW. But you have to return it to the dealer that you leased it from.

Thank you. I hope this still holds true today. Anyone do this recently?

[///M Ryder]

M3's are bringing better than residual right now so it will be very hard to convince the dealer to lower your buyout. Hell, they're hoping you turn it in so they can flip it.......Phil