Buying after lease/Performance pack

jzcrna · 10-04-2013, 07:43 AM

Im surprised I even came back to post after the thorough bashing of my accord test-drive

Anyhow as much as I see some good qualities with cars I have test-driven there is still no other car that really hits ALL of the main points like my 335i. Yes, there are some things that I wish were different but I cannot find an adequate replacement. So here is my thinking:

Many people say that it is not wise to purchase after a lease, but I disagree to an extent. My 30 month lease expires next September with close to 50,000 miles on the ODO. My residual will be around $30,000 after they keep my deposit. I have been looking online at BMWs and other vehicles and this price seems lower than what I am seeing for like used BMWs. In fact, when my lease is up I could not find one that is optioned like mine for this price. My next point is that this car has been pretty flawless. I could see it lasting 200,000 miles. Its just making more sense to finance after my lease is up. With my track record I have wasted so much money trading cars in, etc. So the money Im losing converting from my lease to purchase is not really that big of a deal to me. I will actually be better off in the long run rather than getting into something new and starting this whole process over again.

If I decided to keep my car, I would most likely get the BMW performance upgrade or even DINAN. 20-30 more hp would make a big difference IMHO.

I am also patiently waiting for the 2 series to arrive. This could change my thinking as well, but I would most likely end up with similar or slightly lower payments and this is what I want to avoid. Purchasing my car after the lease is up will slash my monthly costs. The car is a depreciating asset anyhow, so I really don't see it negatively.Worst case scenario if I started having issues later on I could just sell it and it would have at least some equity.

Tron-M3 · 10-04-2013, 08:19 AM

If you like the car, then by all means, keep it. Buying out a lease is the equivalent (IMHO) of purchasing this car as a CPO, without all of the dealer markup. No question the car will hold its value and you will have some equity in it. If you can swing a really good interest rate then I say its a no brainer. The only thing you need to consider is maintenance costs after the 4 years of maintenance expires. However, with the new Value Service BMW is pushing, it still may be a good option.

btbossman · 10-04-2013, 09:04 AM

I think you should do whatever you want, but when you see the new stuff, the old stuff just doesn't satisfy. Not that the f30 is old, but hey you may fall in love with a 4 or 2...keep your eyes open and you bank account full!

vitriol · 10-04-2013, 11:09 AM

I don't think it's a bad idea to buy your leased vehicle at contract end. Particularly if the payoff is lower than what you'd pay for a similar used car.

Don't forget you'll be on the hook for sales tax on the payoff amount, which you have to pay as a lump sum at time of purchase (BMWFS will let you wrap the sales tax into your loan if you finance through them, although their rates are not competitive from what I know).

10-04-2013, 07:43 AM	#1
jzcrna Captain 167 Rep 975 Posts Drives: 2019 M2 Competition Join Date: Mar 2008 Location: NC iTrader: (0)	Buying after lease/Performance pack Im surprised I even came back to post after the thorough bashing of my accord test-drive Anyhow as much as I see some good qualities with cars I have test-driven there is still no other car that really hits ALL of the main points like my 335i. Yes, there are some things that I wish were different but I cannot find an adequate replacement. So here is my thinking: Many people say that it is not wise to purchase after a lease, but I disagree to an extent. My 30 month lease expires next September with close to 50,000 miles on the ODO. My residual will be around $30,000 after they keep my deposit. I have been looking online at BMWs and other vehicles and this price seems lower than what I am seeing for like used BMWs. In fact, when my lease is up I could not find one that is optioned like mine for this price. My next point is that this car has been pretty flawless. I could see it lasting 200,000 miles. Its just making more sense to finance after my lease is up. With my track record I have wasted so much money trading cars in, etc. So the money Im losing converting from my lease to purchase is not really that big of a deal to me. I will actually be better off in the long run rather than getting into something new and starting this whole process over again. If I decided to keep my car, I would most likely get the BMW performance upgrade or even DINAN. 20-30 more hp would make a big difference IMHO. I am also patiently waiting for the 2 series to arrive. This could change my thinking as well, but I would most likely end up with similar or slightly lower payments and this is what I want to avoid. Purchasing my car after the lease is up will slash my monthly costs. The car is a depreciating asset anyhow, so I really don't see it negatively.Worst case scenario if I started having issues later on I could just sell it and it would have at least some equity.
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10-04-2013, 08:19 AM	#2
Tron-M3 Second Lieutenant 88 Rep 263 Posts Drives: 2023 G20 M340i XDrive Join Date: Aug 2010 Location: Long Island, NY iTrader: (0)	If you like the car, then by all means, keep it. Buying out a lease is the equivalent (IMHO) of purchasing this car as a CPO, without all of the dealer markup. No question the car will hold its value and you will have some equity in it. If you can swing a really good interest rate then I say its a no brainer. The only thing you need to consider is maintenance costs after the 4 years of maintenance expires. However, with the new Value Service BMW is pushing, it still may be a good option.
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10-04-2013, 09:04 AM	#3
btbossman Banned 104 Rep 1,715 Posts Drives: 2013 335xi M sport--2014 M6 Join Date: Jul 2013 Location: Charlotte, NC iTrader: (0)	I think you should do whatever you want, but when you see the new stuff, the old stuff just doesn't satisfy. Not that the f30 is old, but hey you may fall in love with a 4 or 2...keep your eyes open and you bank account full!
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10-04-2013, 11:09 AM	#4
vitriol Private First Class 15 Rep 128 Posts Drives: 2016 340i M Sport Join Date: Jun 2011 Location: Los Angeles iTrader: (0)	I don't think it's a bad idea to buy your leased vehicle at contract end. Particularly if the payoff is lower than what you'd pay for a similar used car. Don't forget you'll be on the hook for sales tax on the payoff amount, which you have to pay as a lump sum at time of purchase (BMWFS will let you wrap the sales tax into your loan if you finance through them, although their rates are not competitive from what I know).
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