Buying at the end of lease, worth it or not??

[abhinata]

Guys,

I leased a 2005 X3 four months back. The total cost of the car is around $39,000. I am paying monthly $525 for a period of 3 years with 36,000 miles for entire lease.

is it worth buying the car at the end of lease. I can refinance it at the end of lease but is it still worth it. I have been debating this questions ever since I leased it.

Any suggestion will be appreciated.

Thanks

Abhi

[b-y]

One of the real advantages of leasing is that you don't have to decide until a few months before the scheduled end of the lease. I have done it both ways-**** the car or turn it in. Here are a few of the considerations:

Reasons to buy:
--You like the car and the purchase price is reasonable. In this scenario you have turned the lease into a finance plan with a different pattern of cash flows than would have occurred if you financed the same car using a traditional loan.

Reasons to turn it in:
--You are tired of the car or disappointed in it. You realize that maintenance costs will increase. The terms of the deal are fixed, so you don't have to show it to potential buyers. You may have to pay for excess mileage if you didn't plan well.

I have had two Mercedes that I've kept for 12 years--one was great, the other had problems over time. On the other hand I was very happy to turn in a Volvo. So--take it easy and write back in three years or so. :wave:

[bimmrgirl]

Guys,

I leased a 2005 X3 four months back. The total cost of the car is around $39,000. I am paying monthly $525 for a period of 3 years with 36,000 miles for entire lease.

is it worth buying the car at the end of lease. I can refinance it at the end of lease but is it still worth it. I have been debating this questions ever since I leased it.

Any suggestion will be appreciated.

Thanks

Abhi
$525 ? how much did you put as down pmt? Mine was $470 including tax for $1500 down pmt.

[Xcube]

Guys,

I leased a 2005 X3 four months back. The total cost of the car is around $39,000. I am paying monthly $525 for a period of 3 years with 36,000 miles for entire lease.

is it worth buying the car at the end of lease. I can refinance it at the end of lease but is it still worth it. I have been debating this questions ever since I leased it.

Any suggestion will be appreciated.

Thanks

Abhi
With the $525/mo. lease payment, one would think that you will have a very low residual at the end of the lease term or the car's just loaded with tons of extras. If my assumptions are correct, then buying the car is to your advantage otherwise, you just simply got a bad deal and should turn it in. :)

[sfca-325i]

Guys,

I leased a 2005 X3 four months back. The total cost of the car is around $39,000. I am paying monthly $525 for a period of 3 years with 36,000 miles for entire lease.

is it worth buying the car at the end of lease. I can refinance it at the end of lease but is it still worth it. I have been debating this questions ever since I leased it.

Any suggestion will be appreciated.

Thanks

Abhi

The "correct" answer won't be known for a few years. If you like the car, check the lease-end buyout amount against kbb and nada, as you get near the point where you have to make a decision.

[canadianbattery]

Guys,

I leased a 2005 X3 four months back. The total cost of the car is around $39,000. I am paying monthly $525 for a period of 3 years with 36,000 miles for entire lease.

is it worth buying the car at the end of lease. I can refinance it at the end of lease but is it still worth it. I have been debating this questions ever since I leased it.

Any suggestion will be appreciated.

Thanks

Abhi

It depends on the residual value. I leased a 2.5 X3 couple months ago. The residual is 61%. It means the lease payment that i am paying is 39% + tax. After 3 years, I will need to pay 61% of the car value if I want to keep the car. This make me very sure I will not keep it.
If you have low residual, it is good to keep because you have paid a bunch of money on the lease payment.
But if you are like me, have a high residual, you might need to double think 30 months later.
By the way, I am in canada, my X3 2.5 is around 47000$USD included 15% canada tax, my monthly payment is around 545$USD w/ zero down.