buy out before lease is over?

We're thinking about keeping our '11 X5d. It is on month 24 of a 36 month lease. We're only at around 14k miles on the clock.

It is a great SUV, and gets great MPG. This time next year I don't think I could do any better in this price range.

I could finance the current buy out price for nearly the same monthly payment.

Pros and cons to doing this? I think I'd have 1 more yr of the full factory warranty.

No one has done this?

I will pitch in with a few thoughts: what you are thinking of doing is perfectly possible, all it takes is to call BMWFS and cut them a check or finance the payoff they can provide you.

However, it may not be in your best interest to do so. Most new BMW leases are subsidized by the company, either with low money factor (interest) or high residual value, or both, all that to help provide a low monthly payment. Throughout your lease, whatever payoff amount they will ask for will be based on that residual. Quite often, when reaching the end of the lease, your dealer can buy the car from FS for a lower price, then certify it and resell it to you at a lower price than your residual. You gain 3 things, CPO, lower price and usually a lower APR. I just did this (yesterday) on my 2010 5 series and the price, APR and CPO made it a very good deal.

Very good points thanks.

One thing that folks do is have the dealer buy the car from BMWFS, then CPO it, then they buy it back from the dealer. The benefit is that you can get the 6yr/100k warranty for less than the BMW Gold plan (which is ~$4000).

Note: This is not a 'fully sanctioned' path by BMWNA so you need to be cool.

BMW can offer the dealer a lower buy out than they have for you in the lease.

Also note that the numbers are all over the place- hard to really get a good fix on what they SHOULD be. Just ask your dealer what, if anything, they can do.

(Crap, just read Tex's post... same thing)

GL

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Your question is understandable. It depends on many things, but before I give you advice you need to come to terms on what's most important, and go from there:

1) what options do you currently have on your SAV?
2) how has the vehicle been reliability wise?
3) how much is the payout?

From there you can determine, whether doing a buyout is worth it. What others have said is a good way of doing it, however it may depend on the individual dealer. You maybe able to snag a good deal next year on an E70 since this is technically the last year of production, so deals can be had. Plus you have all the perks of getting a new car.

Warranty is a concern for sure. Owing over 30k on a car with only 1 yr of warranty left sounds crazy I guess.

Originally Posted by NoI4plz

Your question is understandable. It depends on many things, but before I give you advice you need to come to terms on what's most important, and go from there:

1) what options do you currently have on your SAV?
2) how has the vehicle been reliability wise?
3) how much is the payout?

From there you can determine, whether doing a buyout is worth it. What others have said is a good way of doing it, however it may depend on the individual dealer. You maybe able to snag a good deal next year on an E70 since this is technically the last year of production, so deals can be had. Plus you have all the perks of getting a new car.

1-we went somewhat light on the options. PDC, heated seats, sirius,
roof rails.

2-it has been great.

3-pay-out today is 36990. Residual is 32228. Lease ends on 10/21/13. Monthly payment including PA 9% tax is 623. So as of today I owe 6853 on the lease contract.

So you think this time next yr they'll be looking to unload left over e70's? I love the diesel though. It may be hard to come across one by then, no?

Looking at trade in values I think I am 5-7k ahead on the buyout vs trade in. I've considered a trip to carmax as the term date nears to sell this and pocket a few dollars.

Originally Posted by dr of rx

Warranty is a concern for sure. Owing over 30k on a car with only 1 yr of warranty left sounds crazy I guess.





1-we went somewhat light on the options. PDC, heated seats, sirius,
roof rails.

2-it has been great.

3-pay-out today is 36990. Residual is 32228. Lease ends on 10/21/13. Monthly payment including PA 9% tax is 623. So as of today I owe 6853 on the lease contract.

So you think this time next yr they'll be looking to unload left over e70's? I love the diesel though. It may be hard to come across one by then, no?

Looking at trade in values I think I am 5-7k ahead on the buyout vs trade in. I've considered a trip to carmax as the term date nears to sell this and pocket a few dollars.

Warranty is certainly a concern, specifically for BMWs. That being said, if your vehicle has 14k, currently the *****out is 4k more than the residual, and you seem to be on the lighter side of the option spectrum, then maybe its worth it. I would try getting it CPO`d by the dealer if you can, and you would be set with YOUR Car (you know the many quirks and etc). Plus you have the CPO warranty.

On the other hand:

Considering you are almost out of the lease this time next year, and since BMW has been offering the pull head program around this time, and would offer one next year (entirely speculative). You could probably get into a newer, more option heavy gasser for something similar to your residual + 15k (brand new vehicle, more options). Again this is the fantasy response. Then again, BMW may decide to sell their last gassers for close to invoice, and then your purchase price goes up the roof and makes your current ride more appealing.



EDIT: I dont know why but *****out seems to be coming up as ***** characters? I cant seem to edit it to reflect the word *****out. But you get my point

Lots of variables to consider. I'll probably just ride the lease out and see where I am next year.
I don't think I could go to the gas X5 after getting such good mpg with the diesel.

Wait until last payment has been made then the dealer can possibly get you a lower buy out that the residual... I would pass on buying it now..just finish the lease then see what kind of discount you can get...the CPO warranty vs Gold or platinum is not nearly as comprehensive... Not gonna get in a long post about it.. If you want my detailed opinion please give me a call... There is more to CPO'ing a car than paying for the CPO fee.

Originally Posted by Greg@Pacific BMW

..the CPO warranty vs Gold or platinum is not nearly as comprehensive...

The CPO warranty was purported to be identical to the 'gold' plan.... Has this changed??????? No need for a long post, maybea link?

Originally Posted by ard

The CPO warranty was purported to be identical to the 'gold' plan.... Has this changed??????? No need for a long post, maybea link?

Not to sound concerned, but if thats the case, I would totally appreciate a link.

ok.... I am off a little.. my apologies.. Gold is similar to CPO.... Platiunum covers all the entertainment options (NAV, Radio, CD)... shoot me email I will send you PDF's

No problem!

I'd been told that the warranty code for gold=CPO when you pull up warranty status for a work order- and had been saying that often here. I was concerned I was incorrect...

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