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  #1  
Old 03-25-2009, 12:41 AM
exbmw exbmw is offline
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Help: Should I Return Lease or Buy ?

I have a 07 328i Sedan due for lease return in a week. I was thinking of returning it as I already have another 328i at my disposal for another four months.( I do not have a buy out option for that) I would have leased/bought another one at that time.

However, I was not aware of the discounts offered these days for lease buy out. My dealer straight offered me a reduction of $1800 in the residual with a 4.9% (Unless its close to 0 its not that important for me though) and considering the postings in this forum I am thinking he or some one esle may discount it by another $2000 ? What would be a fair price for a 2007 328i with 25000 miles (just base car with metallic color) ?

My question is the buy out option such a good deal that I let the car sit in the garage for another four months or would I would be able to get the same car in market for say even a $1000 more four months later. You expert opinion would be highly appreciated

Last edited by exbmw; 03-25-2009 at 12:43 AM. Reason: typo
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  #2  
Old 03-25-2009, 12:50 PM
anE934fun anE934fun is offline
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The CPO market is quite a hot market at the moment. Your dealer is wanting to get your car off lease to be able to re-sell it.

If you want to buy your car, you may have to visit a few dealers to find one that is willing to work with your transaction (they will be making less on a lease-to-purchase conversion than on a CPO sale). If you want the CPO finance rate, then the car will need to be inspected and put in the CPO program, which has a fee for the transaction. The dealers would probably be more interested in doing the CPO conversion, since they stand to make more $ on the transaction.
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Old 03-26-2009, 12:26 AM
exbmw exbmw is offline
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Let me try to rephrase the question. If I end up returning the car, would I be able to get a similar deal for another car from the dealer in 4 months ? If not what is the premium I would have to pay ? In other words how much I would be saving by buying this car compared to market

Last edited by exbmw; 03-26-2009 at 12:27 AM. Reason: typo
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Old 03-26-2009, 06:07 AM
anE934fun anE934fun is offline
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If you are wanting to go into the CPO market in 4 months to get a better 'deal' than you have on the residual for your present car, that is really an unknown. The economy could completely hit a wall or it could start getting back on a northward track, or any number of other scenarios could occur.

Perhaps you might want to keep your options open by ordering a new car to replace your current car and then in 60 to 75 days when the replacement car arrives, check out where the market is at? Did you buy your present car locally? If so, the dealer should be willing to work with you on the order with the understanding that you are soft on the order and may end up going the CPO conversion route. While the ordered car is being built and shipped, you can extend your present lease for up to something like 6 months.
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Old 03-26-2009, 07:36 PM
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tturedraider tturedraider is offline
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Quote:
Originally Posted by exbmw View Post
I have a 07 328i Sedan due for lease return in a week. I was thinking of returning it as I already have another 328i at my disposal for another four months.( I do not have a buy out option for that) I would have leased/bought another one at that time.

However, I was not aware of the discounts offered these days for lease buy out. My dealer straight offered me a reduction of $1800 in the residual with a 4.9% (Unless its close to 0 its not that important for me though) and considering the postings in this forum I am thinking he or some one esle may discount it by another $2000 ? What would be a fair price for a 2007 328i with 25000 miles (just base car with metallic color) ?

My question is the buy out option such a good deal that I let the car sit in the garage for another four months or would I would be able to get the same car in market for say even a $1000 more four months later. You expert opinion would be highly appreciated
Personally, if I had the choice between buying my own off-lease car, even if it would sit for four months, and buying someone else's off-lease CPO car four months down the road, I'd buy my own off-lease car that I knew everything about (assuming I had been satisfied with it, of course).
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Old 03-26-2009, 08:18 PM
anE934fun anE934fun is offline
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Quote:
Originally Posted by tturedraider View Post
Personally, if I had the choice between buying my own off-lease car, even if it would sit for four months, and buying someone else's off-lease CPO car four months down the road, I'd buy my own off-lease car that I knew everything about (assuming I had been satisfied with it, of course).
+1. But it sounded like the OP was wanting to take advantage of the current incentives on new cars....
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Old 03-27-2009, 04:13 PM
exbmw exbmw is offline
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Thanks for the replies. This is a car I got as a sub-lease last year so it is not totally my own. Plus if its covered under warranty would it make a difference ? What would be a good price for this car ?

I do not want to extend the lease for this car as I would be then paying for two leases while driving only one (I did mention taht I have another car at my disposal for another four months which I cannot buy). You are right that it is very hard oto predict the economic condition four months now, but the question is more like, If I return this car and buy someone else's CPO car with the same specs, waht would be the price differential I would see.

One more thing is If I end uo buying this car, I would save on the excess mileage and disposition fee wich is almsot $1200
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Old 03-28-2009, 08:48 PM
z06bigbird z06bigbird is offline
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You can typically get a better deal on a new car rather than buying your old (leased) BMW. Interest rates on used cars are higher; there are no rebates on used cars. The residual is typically set in stone.

You certainly cannot afford to re-lease the old car for another year or two. Numbers just do not pan out compared to a new vehicle. Ask your dealer to quote you lease numbers on an 08 and on an 09. 09 will be cheaper cause residual will be higher than on the 08.
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Old 03-29-2009, 07:58 AM
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Elias Elias is offline
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Six months ago guys were posting up great deals on buying their leased cars from BMW.Lets face it most of those deals are long gone, CPO BMWs are a hot commodity right now and the dealer numbers prove it, Adrian has said it, Ed and abunch of others, just do a search. In most cases for the near future if you want to buy your leased car be prepared to pay the residual or close to it.
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