2011 BMW 328i

Let me start by admitting something that I think I have always known. I am an idiot.

That being said, let me start off with my story. About 3 years back, I leased a new 2011 BMW 328i with M Sports Package and Seats. And being the idiot I am, i opted for the tire protection and a dent and ding package. To top it off, I did not bargain on the price. Here's how it looks. I understand this could qualify for the worst deal ever.

Lease Start - Oct 2010
Value of Vehicle - 45208
Gross Capitalized Cost - 46388
Monthly Payment - 606.69
Least Term - 36 Months
Mileage - 36K
Miles so far - 23500
Residual Value - 28145.00
State - Texas

My lease ends in about 6 months. Since I have the runflats, I have already had to replace them for about $1000/4 tires and I believe I have to replace them again when I turn in my lease. Here are my options

1. Walk Away
Tire Replacement - $1000
Disposition Fee - $350

2. Lease Buyout
Residual Value - 28145
Taxes, Title,License - 2500
Disposition Fee - 350
Total - 31000

KBB Value for my car - 26300

I'll still need to get a car and I like this one. My questions are this

1. I understand I need to make my own decision, but if you're in my position would you buy this car or would you walk away.

2. Do I have some leeway for negotiating with BMW Dealer and can I bring the price down by $2000 ?

Thanks in Advance.

If it was "me".....

I would buy it out - because of the following.

It's been your's, so you know how its been treated, etc.

It's the last generation/year of the wonderful inline silky smooth 6

I like to keep my cars for a few years and like the self ownership instead of a lease.

Still getting used to the new F series line

Your miles are way under what was anticipated meaing your buyout/residual is much lower than a car with 23K miles so you are coming out ahead, hence a "good deal".

My .02

Usually if your residual value is more than the market value, it is not a good deal because you could take that ~$2,000 difference (28145-26300) and buy a car with the same mileage and condition for $2,000 less. That being said, there is something to say for a car that you have personally taken care of since it went off the lot.

I would try to find what similar cars in the condition are going for in your area before you do anything. Also, get a trade-in appraisal. The tires are a bit of a wash since you'd have to replace them if you bought it or walked away.

And don't worry, you aren't an idiot. I drove 38,000 in under two years on a Ford Fusion lease I got out of to get into my BMW last week. I had a buyout of ~$19k and a KBB of $13500 but my mileage was wayyyy over and it cost me $2500 to get out early.

@tmcgrew : You're right, the tires would be a wash. But if I keep it I would rather replace the RFT tires with regular ones. Two replacements within 30K is a bit more than I can handle.

@Vanos : I get it. If I had taken a lower mileage lease, I probably would have had a higher residual.

For more information, I had a look at my BMW FS account which gave a current lease payoff quote of 31600. Does anyone know if this includes the upcoming month's payment (March 2013) or it does not. The reason I ask is that if i add up the remaining payments and my residual amount that comes out to higher than 31600. In such a case would it not make sense to buy the car at its current price. (Granted the difference seems to be only $200, but my monthly payments would be lesser)

Also, I guess there is no negotiating on the residual either through BMWFS or through the dealer (if I don't go the CPO route) ?

Originally Posted by eee90

@tmcgrew : You're right, the tires would be a wash. But if I keep it I would rather replace the RFT tires with regular ones. Two replacements within 30K is a bit more than I can handle.

@Vanos : I get it. If I had taken a lower mileage lease, I probably would have had a higher residual.

For more information, I had a look at my BMW FS account which gave a current lease payoff quote of 31600. Does anyone know if this includes the upcoming month's payment (March 2013) or it does not. The reason I ask is that if i add up the remaining payments and my residual amount that comes out to higher than 31600. In such a case would it not make sense to buy the car at its current price. (Granted the difference seems to be only $200, but my monthly payments would be lesser)

Also, I guess there is no negotiating on the residual either through BMWFS or through the dealer (if I don't go the CPO route) ?

Sometimes it includes the disposition fee but if you have not paid the month's payment yet, it should not be accounted for in your pay-off. The best thing to do is contact BMW FS and ask them why you are seeing the difference.

I leased a 528i in 2009 and when it was time to turn it in, I was at 37000 miles (7000 over), original tires, some bumper damage well out of spec (thanks honey for running into the garage week 1). BMW waived EVERYTHING, leasing me a 2012 528i with more features for less money. They had a special going on that got me out of the lease 2 months early also. I was able to custom order from the factory the 2012 also. BTW I really like the 2012 much more than the 2009. Feature rich etc.

Go talk to your dealer and see what they can do.

@bmwrocks - Wow!! That sounds great.. I still have about 6 months left on my lease. Is it too early to talk to the dealer ? Also, should I go back to the dealer I bought from or will any BMW dealer be able to offer me a good deal ?

I would try to talk them down $2000, they don't really want the car back so your chances are good, if they won't move I would get a new car. You can get a new BMW for a few K more with a 4 year warranty and maintenance coverage. My 2 cents

Just want to add also if you are looking at leasing again. Don't fret so much over tires, my sister has leased 3 series now and they "usually" will waive/work with you on those little turn in gotcha's lke tires, small dents etc. to get you into another lease. Sometimes if you play it right, you can use it to your advantage if they think you are "on the fence" and worry about having to take a hit on the tires/dents and a lot of times will take that off to get you into a new lease. If it was me I will still buyout, but just trying to give you all the "inside" or actual experience for other people have told me about leasing again.

Though maybe it helped too that everytime she received an even better deal on the next lease is that she is a cute single blond in San Diego?

Good luck with your decision and keep us posted.

oh, and for all the nit pickers, when I stated the last inline 6, yes was referring to the last naturally aspirated 6cyl. Yes I know the turbo is a 6 before anyone try's to correct me.

I would definitely keep it. You paid a lot of money for extras, and the car has very low miles, may as well enjoy it. If you give the car back, the dealer will wash it, vacuum it and sell it for more money because it has all the extras and low miles. While you will end up leasing another vehicle and pay again all kinds of fees and taxes. The car still has many miles to offer.

Just my thought on this- I must say the idea to keep a car that YOU have taken care of is a great idea. Now the BIG quiestion is do you like this car that much to keep it another 3years or so? If so you can look into to refiancing the ****** I recently bought a used 2011 BMW328I and used a company called (Pentagon Federal Credit Union) which offers a 1.49 interest for used cars up to 6 years I believe- not sure what you are paying in interest nor how long of a loan payment you would want but just throwing it out there and no I do not work for them LOL

and I would def. see if you can talk them down on the price~

Originally Posted by Speedwagon

I would try to talk them down $2000, they don't really want the car back so your chances are good, if they won't move I would get a new car. You can get a new BMW for a few K more with a 4 year warranty and maintenance coverage. My 2 cents

What in the world makes you think the dealer wouldn't want this car back?! It presents a major profit opportunity to the dealer to sell as a CPO. They would be thrilled to get it.

Originally Posted by Str8black328I

Just my thought on this- I must say the idea to keep a car that YOU have taken care of is a great idea. Now the BIG quiestion is do you like this car that much to keep it another 3years or so? If so you can look into to refiancing the ****** I recently bought a used 2011 BMW328I and used a company called (Pentagon Federal Credit Union) which offers a 1.49 interest for used cars up to 6 years I believe- not sure what you are paying in interest nor how long of a loan payment you would want but just throwing it out there and no I do not work for them LOL

and I would def. see if you can talk them down on the price~

PenFed is offering the 1.49% rates for five years/60 months.


OP, for the many reasons listed here I too recommend keeping the car. Don't worry about the sales tax in your financial considerations, because that is a cost you will incur no matter what car you buy. Finance it with PenFed, they are excellent. Anyone can join. www.PenFed.org

Originally Posted by tturedraider

What in the world makes you think the dealer wouldn't want this car back?! It presents a major profit opportunity to the dealer to sell as a CPO. They would be thrilled to get it.

Maybe not as thrilled as you think, they may have a profit opportunity if they can sell it at the right price, CPO will add to the sales price. Don't get me wrong I love my Naturally Aspirated 14 mpg BMW (328I). New BMW's are getting twice the mpg and are just as fast if not faster. To me, not a hard sale, to someone new to BMW's it will be very hard sale with gas over $4.00gal. Why would they want to buy a car that is two or three years old with limited warranty as far as time goes when you can buy a brand new one for a few K more with 4y and 50k warranty.

After a three year lease and 60 months finance how much would the total cost of the car be?

I know which ones the bank wants the dealer to sale. You maybe right about the dealer wanting it back, the dealer probably can turn a profit on it with people wanting to get into any BMW not worried about being upside down!

Just jawan......

Originally Posted by eee90

@bmwrocks - Wow!! That sounds great.. I still have about 6 months left on my lease. Is it too early to talk to the dealer ? Also, should I go back to the dealer I bought from or will any BMW dealer be able to offer me a good deal ?

I have bought all my BMWs from the same dealer so that's where I brought mine back. It was some kind of "customer loyalty" type deal they gave me. Lease another one and they take this one back early and waive ALL fees. Did not cost me a dime to give that car back. Unless you count the 3 year lease I am in now lol.

As far as how early, they would have waived 2 months on mine, but I only ended up not paying for one because they let me custom order the car and it took a month to get it. Also I had to take delivery before a certain date to get the incentive.

Check with them now if there are any similar deals coming up. These are BMW corporate deals, not dealership specific.