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View Full Version : Has anyone gone from a lease to a purchase???


3seriesbimmer
12-18-2003, 05:44 PM
I am currently driving many more miles than I used to when I first got my car. As a result the milage is moving much faster towards the lease allowed 45K. My question to anyone is how difficult is it to switch to a purchase and what fees etc. will I concur if any???

elbert
12-18-2003, 06:50 PM
I am currently driving many more miles than I used to when I first got my car. As a result the milage is moving much faster towards the lease allowed 45K. My question to anyone is how difficult is it to switch to a purchase and what fees etc. will I concur if any???

What I did was re-lease my car for another year with an additional 25k miles (the max), so I'll have a total of 70k miles.

What I found was the penalties from over-usage was roughly about 1/2 the total payments of the re-lease. And the monthly payments of the re-lease was less than what I was paying for the 36 month lease.

TGray5
12-18-2003, 09:21 PM
You have the option to purchase the car at the end of the lease for the residual value plus a small fee (sometimes). Check your lease agreement for the details. If you do purchase the car, then there is no mileage penalty, but of course you will ultimately suffer when you sell the car with more miles on it. Wait and see what the value of the car is near the end of the lease as compared to the residual value and as compared to what the over-mileage penalty plus turn-in fee will be if you turn the car in. On a previous lease, I made $2,000 by buying the car and simultaneously reselling it.

KevinM
12-19-2003, 01:04 PM
Dont't forget you are under no obligation to purchase the car at the residual value. You can bargain with BMW based on what the car is worth on the market at the time your lease is up. They may cut you a deal to avoid having to CPO and sell the car themselves.

Kevin

3seriesbimmer
12-20-2003, 06:54 PM
Dont't forget you are under no obligation to purchase the car at the residual value. You can bargain with BMW based on what the car is worth on the market at the time your lease is up. They may cut you a deal to avoid having to CPO and sell the car themselves.

Kevin

Interesting... I thought the residual value was NON negotiable??? Can I really bargain the vehicles price at the end of the lease??? :dunno:

Tanin
12-20-2003, 06:59 PM
Interesting... I thought the residual value was NON negotiable??? Can I really bargain the vehicles price at the end of the lease??? :dunno:


You can bargain almost anything if you ask. That includes your residual purchase and your cost per mile penalty. :)

3seriesbimmer
12-20-2003, 07:34 PM
You can bargain almost anything if you ask. That includes your residual purchase and your cost per mile penalty. :)

Interesting.... Well does anyone have any thoughts on deciding to purchase the car ...it will be 85 dollars more a month for 60 months.And this will give me the title AND dealerships can now purchase it from me OR I can trade it in ...from what I understand dealerships can only take the car in trade IF the car is titled under the customers name.

pony_trekker
12-21-2003, 04:22 AM
on BMWUSA.com. I would only do this if you are going to be REALLY over, as they might waive slight overages.

SARAFIL
12-21-2003, 07:13 AM
from what I understand dealerships can only take the car in trade IF the car is titled under the customers name.

There are exceptions for leases. They'll have to pay off your account, though.

SARAFIL
12-21-2003, 07:18 AM
They may cut you a deal to avoid having to CPO and sell the car themselves.

Kevin

BMW has negociated *****out or lease-end terms in the past, but usually with excess mileage and wear-and-tear charges, and not the actual *****out. I'm sure it can be done, though.

And for the record, BMW has one of the highest percentages of off-lease cars sold at retail by a BMW dealer. They have a "Full-Circle" program that dealers can participate in to purchase off lease vehicles, requiring them to buy all cars originated at and turned it at their dealer, with a handful of exceptions each year. The benefit for the dealers is a constant supply of used cars, and a slightly lower *****out. BMWFS has little pressure to get rid of the cars compared to some other lenders, and they are not the ones responsible for certifying and reselling the cars after they come off lease.