12-03-2017, 10:39 AM | #1 |
Captain
309
Rep 641
Posts |
Early lease buyout questions
Question to those with a better financial mind than me
So my situation is a little peculiar in that I leased my car (2017 340 x drive-list was 65k after all the bells and whistles) but I anticipated overage on miles... got a 15k miles. I drive a lot... like 22k a year... and I expected to pay overages, but based on my previous work situation, I had a car allowance and it was basically a wash between buying and leasing... So my work situation has changed, which is not the biggest deal, but the part that is a big deal is I am driving way more miles than I expected... thus I will have hefty mileage overage. I really like the car and I could buy it out at the end, but given the residual rates of these cars, it's not always the best idea... but I think what I would loose in overpaying for the car I will overpay on the miles.... Is there any advantage to trying to buy it out early? Is that possible? My next car I will buy 1-2 years used, and I wasn't the smartest financially with this purchase, but I'm trying to mitigate its damage. I am fine paying for the miles, and just suck it up, but wondering if anyone has any smarter ideas that could save me some bucks... I am anticipating now having 30k in overage miles versus the 15k that I initially expected Thanks |
12-03-2017, 12:17 PM | #3 |
Lieutenant
401
Rep 547
Posts |
If you're going to pay them $6k for overage miles then you might as well put that money as a down payment and buy the car out at lease end. You can also trade it in at a later date after you purchase it.
Good luck.
__________________
2014 435i xDrive M-Sport, Fabspeed cat, Active Autowerke axle back, CTS Turbo intake, ER charge pipe, ER Competition Intercooler, MHD Tuning Stage 2+
|
Appreciate
0
|
12-03-2017, 12:37 PM | #4 | |
Captain
309
Rep 641
Posts |
Quote:
This option is appealing, because then I could have an SUV that I could take advantage of on the bad snow days. |
|
Appreciate
0
|
12-03-2017, 12:39 PM | #5 | |
Captain
309
Rep 641
Posts |
Quote:
Bottom line it's all a wash and I should just stop thinking about it. But I would like to be informed before just sucking it up. Thanks |
|
Appreciate
0
|
12-04-2017, 05:53 AM | #6 |
Brigadier General
5940
Rep 3,291
Posts |
One note: You don't actually have to wait until the end of the lease to buy it out. You could finance it through another company earlier if you want. It all depends on how the payoff price looks right now vs. how much of it you can get someone to finance. You may have to pay some cash to even out the loan value, but depending on how many payments you've made, you may have already saved that cash:
If the difference between your lease payments and what the monthly payment on financing the car for 60 months would have been is $300...which sounds like a lot but a 60k loan at around 3% interest is $1078 a month...and you've made 10 payments, you've saved 3 grand paying the lease vs a loan. If you haven't spent that money then it's sitting in your bank waiting to be a down-payment. I doubt very many of us actually tuck away all the lease vs. finance savings (I certainly have not), but the concept is solid (or it was until the lease deals tanked). |
Appreciate
0
|
12-04-2017, 05:42 PM | #7 | |
Captain
309
Rep 641
Posts |
Quote:
|
|
Appreciate
0
|
12-04-2017, 08:39 PM | #8 | |
Major General
4975
Rep 6,241
Posts
Drives: 2018 340i M Sport
Join Date: Apr 2006
Location: Chicago, Edgewater (via Texas & Tennessee)
iTrader: (0)
Garage List 2018 BMW 340i M Sport [9.38]
2020 BMW M340i xDrive [10.00] 2018 BMW 340i M Sport [8.00] 2006 BMW 330i Sport [4.50] 2004 BMW 330i ZHP [7.25] 2000 BMW 328i [6.00] |
Quote:
If you decide buying the car at lease end is the way you want to go, you may want to look at buying an extended BMW warranty before your car goes out of warranty based on mileage. Once the car is out of warranty BMW extended warranties are no longer available.
__________________
www.bmwcca.org member #388003 - Use me as a referral & you could win a one day ///M Driving School!! ___________________________________________ |
|
Appreciate
1
otay826.00 |
12-04-2017, 09:47 PM | #9 | ||
Captain
309
Rep 641
Posts |
Quote:
|
||
Appreciate
1
MSporter150.00 |
12-04-2017, 11:13 PM | #10 |
Major General
4975
Rep 6,241
Posts
Drives: 2018 340i M Sport
Join Date: Apr 2006
Location: Chicago, Edgewater (via Texas & Tennessee)
iTrader: (0)
Garage List 2018 BMW 340i M Sport [9.38]
2020 BMW M340i xDrive [10.00] 2018 BMW 340i M Sport [8.00] 2006 BMW 330i Sport [4.50] 2004 BMW 330i ZHP [7.25] 2000 BMW 328i [6.00] |
Yes
__________________
www.bmwcca.org member #388003 - Use me as a referral & you could win a one day ///M Driving School!! ___________________________________________ |
Appreciate
0
|
12-04-2017, 11:16 PM | #11 |
Major
483
Rep 1,267
Posts |
A dealer will sell you the car for well below residual. It happens all the time. My last car they offered me a price $2500 below residual value. Some have done much better. BMWFS won't do it, the dealer basically buys the car from BMW @ fair market/auction/whatever and then sells it back to you @ a profit. You should just do that
__________________
2016 Black Sapphire 328i | M Sport Pkg. | JB+ | Premium Pkg. | Heated Seats | Driver Assist Pkg. | Navigation | Misc. Coding | 35% Ceramic Tint
Past: 2014 Black 320i | Sport Pkg | BMS Stage 1 |
Appreciate
0
|
12-05-2017, 11:58 AM | #12 | |
Captain
309
Rep 641
Posts |
Quote:
|
|
Appreciate
0
|
12-05-2017, 06:42 PM | #13 |
Lieutenant General
18708
Rep 14,115
Posts
Drives: G82 M4C X-Drive
Join Date: Mar 2013
Location: Orange County, CA
|
Another option:
Lease swap. Let someone else take over the lease. It costs $500, which the new leaser can pay. Then you can wash your hands of it and get a CPO car and save some $. Yet another option: Lease a second car. I was actually in the exact same situation as you. Leased my M3, then my commute jumped to 80 miles a day. I would have paid close to $7k in mile overages as well. I shopped around for used cars but a $7k car is usually a POS. Do I really want to drive around half the time in a shit car? Personally, I'd rather pay $7 and drive around in my M3 all the time. BUT... then I thought about leasing an i3. It's not as nice, but I get to use the carpool lane, and I don't feel like I'm in a shitty used beater! PLUS BMW has 2 years free charging, so not only would I save on mileages on my M3 lease, but I won't be paying for gas! It was a no brainer. I found a great deal, and I mean really great. My total out of pocket is less than my mileage penalty. Insurance is an added expense, but I'm saving a good amount of money on gas. All in all, I'm spending about $50 a month net and I have the convenience of an extra car in the driveway. Unfortunately you can't get any i3's now. You can, however, get some great deals on Chevy Bolts and Volts as well as Fiat 500e's for less than $200/mo. Check out a continually updated list here: http://ev-vin.blogspot.com/2016/07/c...ected-evs.html The Honda Clarity can be had for $900 down, $199 a month. That's a decent deal for a range of 366 miles.
__________________
2022 G82///M4 Competition X-Drive - KW-HAS, EBC Bluestuff, Millway Race Camber Plates, Cup2 Connect*, PSI High Flow Midpipe, Lightweight Front Lip, M Perf Flow Through Wing Previous • 2018 F80 ///M3 CS • 2016 F80 ///M3 IG: Raging_G82 |
Appreciate
0
|
12-07-2017, 10:31 AM | #14 | |
Captain
309
Rep 641
Posts |
Quote:
Maybe just suck it up. Pay the miles, get rid of it, and learn from my mistake, that is buy a new used car and drive the shit out of it knowing that I am willing to pay the money because I like it... |
|
Appreciate
0
|
12-07-2017, 12:55 PM | #15 | |
Second Lieutenant
117
Rep 255
Posts |
Quote:
__________________
2011 X5 xDrive 50i - retired
2016 340i xDrive - retired 2020 M4 Coupe |
|
Appreciate
0
|
Post Reply |
Bookmarks |
|
|