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A sudden sense of liberty
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I agree. Leasing any used car is a mistake. New car leases are often subsidized by the manufacturer, but this is rarely the case with used car leases. With a lease car out-of-warranty, you are facing a large repair exposure at the time of turn-in if there are any mechanical problems with the car. And don't let the CPO program fool you; the CPO warranty is very limited in its coverage, and is by no means a continuation of the initial factory warranty.

Look into leasing a new 325. You'll get performance very similar to the 328, and because of subsidization and the inherent lower cost of new car leasing, you'll probably pay the same or less, even if the actual price of the car is slightly more. Plus you get the warranty and that new car smell, along with the opportunity to spec the car out exactly as you want.

If you do decide to go used, buying it would seem to be the way to go. IIRC, someone posted recently that BMW Financial is offering very low interest rates on CPO 3 series of a certain vintage.

Go Blue, etc.
 

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A sudden sense of liberty
Joined
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3,939 Posts
Yes, you can lease doing ED, and yes, it will have a substantial impact on your lease payment. Since the capitalized cost of the car is figured on the US MSRP (even if you do Euro delivery), any amount that you save off MSRP is akin to a capitalized cost reduction (IOW, putting money down). ED would thus act like a $3K down payment.

One word of caution, though: the lease payments for ED start early. IIRC, it's one month prior to the pickup of the car. This means that you're lease clock is running while the car is being shipped back to the US. This, coupled with the trip costs, may eat up any savings that ED provides on a lease.

As for dealers around Baltimore, I don't know, but there are a number of dealers in the DC area. Of those, the best deals I've seen have come from Passport (in Maryland) and Sterling (in Virginia). ED prices can be negotiated; as with any negotiation, start from invoice and expect to add a reasonable dealer profit. I've seen as little as $1200, but I think anything in the $1500 over neighborhood would be considered a very good deal.

Remember to negotiate the purchase cost of the car before you start talking about leasing. Once you've settled on a price, you can ask about residuals, money factors, etc. and have the dealer walk you through that end of the deal.

umichalumni said:
Wow, glad I came to this board, the reason I initially figured to lease a CPO was because after talking to a local salesman in my area he really made it seem that the CPO warranty did cover everything except stuff that wore, ie clutch, brakes. I suppose he was just trying to move a car. Also I figured, the price for a new 325i would run higher than a used 328i after I added options to the 325 and I could get the 328i pretty much loaded. Also, I know lease payments are based on depreciation of a car, and a new 325i might be likely to depreciate more than a used 328i, since new cars depreciate more rapidly. Apparnetly this doesn't seem to be the case though.

I have a couple more questions, if I were to lease a new car could I use Euro-Delivery and would it result in any additional discounting of my lease payments? I hope to be moving to the Baltimore area shortly, and was wondering which was the dealer to go to for the best deal? Thanks all the help is appreciated.

Go Blue :D
 
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