does it make sense to buy out lease early?

matt_435xi · 10-13-2013, 11:58 AM

here is the situation, i drive a 2012 335i and i have completed 18 of 36 month lease and driven 20,000 out of the 30,000 miles on my lease. i am way over miles, its just too much fun to drive.

this car has been trouble free (knock on wood) and i really enjoy it. i do not have the funds to pay cash for the car, so i will have to finance what i can buy down, so should i:

a) wait until lease end, and then finance the car.

b) buy out the lease today, and finance now.

thanks!

DesertSmokeBBQ · 10-13-2013, 12:00 PM

Wait until lease end. If you buy it out now, you'll pay tax & Lic on a higher dollar amount.

aktx · 10-13-2013, 12:44 PM

also with some lenders, if you opt to buy out early there might be an early
termination buyout, it could be up to $4000 in fees. check all the fine print before you choose that option, or maybe you can buy more miles, or last option, flip that lease into another one. but just check to see if the lender has a early buyout.
one last last thing just came to mind. if you choose finance, you might be upside down.
ak

F32 · 10-13-2013, 01:41 PM

Just trade it in and lease a 2014. To move another unit, the dealership will overlook the mileage and likely buy out the car for whatever it's worth.

raleedy · 10-13-2013, 02:15 PM

If you have a BMWFS lease, you have another option, which is to buy more miles. You should do this only if you don't plan to buy the car at lease-end -- or if you do, make sure the mileage purchase results in an adjustment to the residual. Buying additional miles is the only option you would need to exercise early -- there's a deadline for that. If you have decided to buy the car, you're better off, as others have noted, to wait until lease end. At that point, the extra miles are irrelevant if you buy the car, and you won't have to pay BMWFS for them.

Falafel Combo · 10-13-2013, 02:40 PM

Quote:

Originally Posted by F32

Just trade it in and lease a 2014. To move another unit, the dealership will overlook the mileage and likely buy out the car for whatever it's worth.

I've heard this a few times before, but it has definitely not been my experience. Have you experienced this yourself, or just second hand knowledge? I am sure some dealerships may do this in an act of desperation, but I do not believe it to be the industry norm.

Besides, it seems that the OP likes his specific car since it seems to be well produced and problem free. Can't guarantee that with a newer one.

Falafel Combo · 10-13-2013, 02:41 PM

Quote:

Originally Posted by DesertSmokeBBQ

Wait until lease end. If you buy it out now, you'll pay tax & Lic on a higher dollar amount.

Smart!

DesertSmokeBBQ · 10-13-2013, 04:24 PM

Quote:

Originally Posted by ///M235i

Quote:

Originally Posted by F32

Just trade it in and lease a 2014. To move another unit, the dealership will overlook the mileage and likely buy out the car for whatever it's worth.

I've heard this a few times before, but it has definitely not been my experience. Have you experienced this yourself, or just second hand knowledge? I am sure some dealerships may do this in an act of desperation, but I do not believe it to be the industry norm.

Besides, it seems that the OP likes his specific car since it seems to be well produced and problem free. Can't guarantee that with a newer one.

I traded my 8mo old leased '13 m-sport 328 w/18k miles for a '14 m-sport 335 and wasn't too wet on the transaction

Kabrich · 10-13-2013, 05:04 PM

Quote:

Originally Posted by DesertSmokeBBQ

Wait until lease end. If you buy it out now, you'll pay tax & Lic on a higher dollar amount.

That might be the case in California (and considering how whacky some of the California taxes are, nothing would surprise me) but for most of America one would pay less tax by paying off the lease early and Licensing costs would be the same regardless of cost.

swamy · 10-13-2013, 05:08 PM

You can check the buyout price online at bmwusa. See how much you overpay if you wait until lease end & make sure you add in tax & dealer processing fee+reg etc when you are comparing $s. If you put in multiple deposits, hold on until end of lease and see if you can find a dealer like this to negotiate your price

http://www.flemingtonbmw.com/buying-your-make.aspx

328AL · 10-13-2013, 05:47 PM

Quote:

Originally Posted by DesertSmokeBBQ

Wait until lease end. If you buy it out now, you'll pay tax & Lic on a higher dollar amount.

I don't see why it would matter? Taxes are included you your payments anyway, so pay now or later, and licencing fees are based on car's value regardless if it's leased or owned.

However, you can't lease or buy a car like yours for 16 cents a mile, so I would consider just buying miles.

I'd agree that wait until your lease ends before you do that is the best solution' a lot of things could change with you, your car and new options that may become available. You're not loosing anything by waiting.

67R60 · 10-13-2013, 06:15 PM

I was thinking of buying my 335xi when it came off lease. The residual was 31K, I called some BMW dealers and one out of state dealer said they will sell me my 335 for 27K.

Moral of the story, wait. If you want your car when it is time to turn it in, shop the purchase around.

Falafel Combo · 10-13-2013, 06:35 PM

Quote:

Originally Posted by DesertSmokeBBQ

I traded my 8mo old leased '13 m-sport 328 w/18k miles for a '14 m-sport 335 and wasn't too wet on the transaction

Interesting. My dealer made it seem near impossible to trade my f30 lease early, for different car or model. But ... somehow things worked out just fine in the end.

328AL · 10-13-2013, 06:38 PM

Quote:

Originally Posted by 67R60

I was thinking of buying my 335xi when it came off lease. The residual was 31K, I called some BMW dealers and one out of state dealer said they will sell me my 335 for 27K.

Moral of the story, wait. If you want your car when it is time to turn it in, shop the purchase around.

Good point, I forgot about that part!

DesertSmokeBBQ · 10-13-2013, 06:55 PM

Quote:

Originally Posted by ///M235i

Quote:

Originally Posted by DesertSmokeBBQ

I traded my 8mo old leased '13 m-sport 328 w/18k miles for a '14 m-sport 335 and wasn't too wet on the transaction

Interesting. My dealer made it seem near impossible to trade my f30 lease early, for different car or model. But ... somehow things worked out just fine in the end.

Here is the one I traded last month. It's still for sale at Chapman BMW on Camelback in Phoenix. (Someone else will be taking the hit...) http://www.chapmanbmwoncamelback.com...dn-140209A.htm

328AL · 10-13-2013, 08:01 PM

Wow, that's been a while since you traded your car in. They still haven't sold it! Probably too greedy compared to new deals available.

matt_435xi · 10-13-2013, 08:36 PM

Quote:

Originally Posted by DesertSmokeBBQ

Here is the one I traded last month. It's still for sale at Chapman BMW on Camelback in Phoenix. (Someone else will be taking the hit...) http://www.chapmanbmwoncamelback.com...dn-140209A.htm

Did you plasti-dip your wheels on your previous F30? Or powder coat?

DesertSmokeBBQ · 10-13-2013, 08:41 PM

Quote:

Originally Posted by matt_335Ci

Quote:

Originally Posted by DesertSmokeBBQ

Here is the one I traded last month. It's still for sale at Chapman BMW on Camelback in Phoenix. (Someone else will be taking the hit...) http://www.chapmanbmwoncamelback.com...dn-140209A.htm

Did you plasti-dip your wheels on your previous F30? Or powder coat?

They're powder coated. Wheel specialists in Tempe did them for $500

coolnesh · 10-14-2013, 10:12 AM

Alternatively, you could just purchase extra miles. At 0.16 cents a mile, i think that is a great alternative to consider. It relegates the discussion on buying the car outright.

Something for you to ponder.

F32 · 10-14-2013, 10:15 AM

Quote:

Originally Posted by ///M235i

Have you experienced this yourself, or just second hand knowledge?

Yes.

10-13-2013, 11:58 AM	#1
matt_435xi Colonel 235 Rep 2,377 Posts Drives: Perfomance Model 3 Join Date: Jan 2007 Location: Denver, CO iTrader: (5) Garage List 2015 BMW 435xi Gran ... [10.00]	does it make sense to buy out lease early? here is the situation, i drive a 2012 335i and i have completed 18 of 36 month lease and driven 20,000 out of the 30,000 miles on my lease. i am way over miles, its just too much fun to drive. this car has been trouble free (knock on wood) and i really enjoy it. i do not have the funds to pay cash for the car, so i will have to finance what i can buy down, so should i: a) wait until lease end, and then finance the car. b) buy out the lease today, and finance now. thanks! __________________ '18 Tesla Perfomance Model 3 White on White Performance Upgrade Pkg & EAP RETIRED 2015 435xi GC [f36] \| 2012 335i [f30] \| 2009 z4 35i [e89] \| 2007 335i coupe [e92] \| 2001 325Ci [e46] RETIRED
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10-13-2013, 12:00 PM	#2
DesertSmokeBBQ Captain 39 Rep 933 Posts Drives: 2014 F30 335i M-Sport Join Date: Jan 2013 Location: San Diego, CA iTrader: (0) Garage List 2013 BMW [0.00]	Wait until lease end. If you buy it out now, you'll pay tax & Lic on a higher dollar amount. __________________ '14 Estoril Blue II F30 - 335i - ZMM - ZPP - ZTP - ZPS - 2TP Traded 9-1-13 '13 Estoril Blue II F30 - 328i - ZMM - ZPP -ZDY - ZTB - 403 - 465 - 494 - 4DX- LC (Black) - 6NL
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10-13-2013, 12:44 PM	#3
aktx Stigs Trainer 3 Rep 28 Posts Drives: E70 4.8i, 997.2 c4s e83 Msport Join Date: Sep 2011 Location: Plano/Frisco iTrader: (0)	also with some lenders, if you opt to buy out early there might be an early termination buyout, it could be up to $4000 in fees. check all the fine print before you choose that option, or maybe you can buy more miles, or last option, flip that lease into another one. but just check to see if the lender has a early buyout. one last last thing just came to mind. if you choose finance, you might be upside down. ak
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10-13-2013, 01:41 PM	#4
F32 Banned 20 Rep 688 Posts Drives: BMW Join Date: Jul 2013 Location: SF iTrader: (0)	Just trade it in and lease a 2014. To move another unit, the dealership will overlook the mileage and likely buy out the car for whatever it's worth.
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10-13-2013, 02:15 PM	#5
raleedy Colonel 160 Rep 2,248 Posts Drives: 2016 228i 6-speed Join Date: Jul 2005 Location: Portland, Oregon iTrader: (0)	If you have a BMWFS lease, you have another option, which is to buy more miles. You should do this only if you don't plan to buy the car at lease-end -- or if you do, make sure the mileage purchase results in an adjustment to the residual. Buying additional miles is the only option you would need to exercise early -- there's a deadline for that. If you have decided to buy the car, you're better off, as others have noted, to wait until lease end. At that point, the extra miles are irrelevant if you buy the car, and you won't have to pay BMWFS for them.
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10-13-2013, 05:08 PM	#10
swamy Private First Class 25 Rep 179 Posts Drives: 2013 328i MG/6MT Join Date: Jul 2013 Location: New Hope iTrader: (0)	You can check the buyout price online at bmwusa. See how much you overpay if you wait until lease end & make sure you add in tax & dealer processing fee+reg etc when you are comparing $s. If you put in multiple deposits, hold on until end of lease and see if you can find a dealer like this to negotiate your price http://www.flemingtonbmw.com/buying-your-make.aspx
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10-13-2013, 06:15 PM	#12
67R60 Seattle Area 52 Rep 362 Posts Drives: BMWs,60s Alfa Romeos Join Date: Mar 2008 Location: Bellingham, WA iTrader: (2)	I was thinking of buying my 335xi when it came off lease. The residual was 31K, I called some BMW dealers and one out of state dealer said they will sell me my 335 for 27K. Moral of the story, wait. If you want your car when it is time to turn it in, shop the purchase around. __________________ 1999 M3 Estoril Blue/Dove 1989 325i Delphin Grey 2011 335x LeMans Blue
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10-13-2013, 08:01 PM	#16
328AL Lieutenant 19 Rep 428 Posts Drives: 2014 F30 Loaded Join Date: Jun 2010 Location: Scottsdale, AZ iTrader: (0)	Wow, that's been a while since you traded your car in. They still haven't sold it! Probably too greedy compared to new deals available. Last edited by 328AL; 10-13-2013 at 08:09 PM..
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10-14-2013, 10:12 AM	#19
coolnesh Enlisted Member 7 Rep 32 Posts Drives: 2019 X3 m40 Join Date: Jul 2013 Location: Dallas, TX iTrader: (0)	Alternatively, you could just purchase extra miles. At 0.16 cents a mile, i think that is a great alternative to consider. It relegates the discussion on buying the car outright. Something for you to ponder.
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