Lease Ending..To buy or not

[kostas]

2006 330 Black/ Black
Body/ paint excellent condition
Only 17,500 miles
sport/ premium
payoff: $27,900
1 year left on warranty

OR

turn it in and buy a new 2009 335i blk/ blk/ sport/ premium
@ .9% financing

or lease a new 2009 335

I typically like to keep my cars 3-4 years.

Thanks for any and all suggestions. I am looking to make the smartest financial decision + value/ eye for the future.

[Joeb427]

2006 330 Black/ Black
Body/ paint excellent condition
Only 17,500 miles
sport/ premium
payoff: $27,900
1 year left on warranty

OR

turn it in and buy a new 2009 335i blk/ blk/ sport/ premium
@ .9% financing

or lease a new 2009 335

I typically like to keep my cars 3-4 years.

Thanks for any and all suggestions. I am looking to make the smartest financial decision + value/ eye for the future.

You don't put enough miles on the car to lease.
The dealer rep is going to kiss you on both cheeks when you turn the car in with that mileage.
$27.9 is high and the CPO will cost you another $2K or so on top of that $27.9K.
It's going to be hard to get money off that $27.9K payoff with that 17K miles and excellent condition..

[rob328xi]

I would give it a try (getting them to reduce the buyout value). My 2006 X3 just went off lease and the dealer said he could buy the car from BMW Financial, certify it and sell it to me for the cost of the buyout amount ($25000). Mine wasn't as low as yours on mileage (37,000 actual /49,000 contracted) but was still well below contracted. I decided to let it go and get something new (328Xi) as once the warranty/service expires it can get expensive to own plus payments on the buyout equaled the lease payment on the new car.

[omelet1978]

I know you said you like to get a new car every 3-4 years. Buying the same car, same color may not feel like a new car you know. I know the 09 is fancier, but what you have right now is pretty close.

I bought a used 330i from carmax for 22. Was able to get an extended warranty on it to. You could do something like that, or to just keep it simple you could get another lease. 27k is a lot to owe on a 3 year old car!

[kostas]

Very true. So what year did you buy from Carmax? Was than an '06? Thanks!


I know you said you like to get a new car every 3-4 years. Buying the same car, same color may not feel like a new car you know. I know the 09 is fancier, but what you have right now is pretty close.

I bought a used 330i from carmax for 22. Was able to get an extended warranty on it to. You could do something like that, or to just keep it simple you could get another lease. 27k is a lot to owe on a 3 year old car!

[omelet1978]

Very true. So what year did you buy from Carmax? Was than an '06? Thanks!

I bought an 06 330i w/ premium and cold weather packages. Could not find one with both premium and sport, but it's my first bmw so I did not think it would be a big deal for me. Had 53k miles on it when I bought it.

It's really nice and minus the new car smell feels like a new car. I'll have it paid off in about 2 years too!

[FORDMANWITHA330]

We just bought our 2006 330i Sedan, Sport Pkg., Premium Pkg., Steptronic Trans for $21,800. We purchased the car from a BMW dealer as Certified Pre-Owned, warranty 'til 100,000 miles, plus 72 month 100,000 mile BMW service contract. All this @ BMW's 3.9% financing. Love the car, Love the deal.

Good Luck,

So. Cal. Fireman

[omelet1978]

Wow, that is a good deal. How many miles are on it and does it have heated seats? I thought about getting CPO but it was several thousand more for me that way...plus documentation fees here in Vegas are ridiculous. Like $600!!!

[fshubert]

I just turned in my 2007 328xi lease and just leased a 2009 335i. I put about 15k/yr on my cars (BMWs are just too much fun to not drive). The big decision was do I buy or lease again. Since I tire of a car every few years (3 is about the max), the lease was the best option. I loved my 328xi but wanted more power and no x-drive. The 335i is sweet (Premium, Cold and Sport packages). I'd do it again in 3 years. And the timing is right I think. 2012 is a new body style for the 3-series I believe.

[FORDMANWITHA330]

omelet1978, our 2006 330i had 45,000 mi. at time of purchase. We did have to pay tax & lic. on top ($2,200.00). Still a great deal. If $$$ is a factor, and it is for most of us, CPO is a great way to go. Brecht BMW in Escondido, CA., has a huge selection of CPO BMW's and loads of 3 series. There was another 330i, almost identical to ours, for $25,000 and only 27,000 miles. Check out their web site. They'll deal on the advertised price. Great buying experience & super BMW rates on CPO.

P.S. Sorry, no heated seats, but Dual power Dakota Leather seats.

Good Luck!

So. Cal. Fireman

[omelet1978]

omelet1978, our 2006 330i had 45,000 mi. at time of purchase. We did have to pay tax & lic. on top ($2,200.00). Still a great deal. If $$$ is a factor, and it is for most of us, CPO is a great way to go. Brecht BMW in Escondido, CA., has a huge selection of CPO BMW's and loads of 3 series. There was another 330i, almost identical to ours, for $25,000 and only 27,000 miles. Check out their web site. They'll deal on the advertised price. Great buying experience & super BMW rates on CPO.

P.S. Sorry, no heated seats, but Dual power Dakota Leather seats.

Good Luck!

So. Cal. Fireman

I think you got me beat on your deal. I'm not sure how the cold weather package affects resale value though. I did searches on autotrader and such, but did not see anything like that when I bought about 6 weeks ago. The best price I could find was like 25k.

I already bought from carmax (2006 330i with premium/cold weather packages, 53k miles for $22,000), and I could have gotten a better price at some used car dealerships BUT i've been burned by used car dealerships before. I think its worked out too, bc carmax fixed an A/C problem and and at the end of the day it "feels" like a good reliable car (I really hope the car does not break tomorrow after saying that).

Oh, and Kostos, you might want to try just writing down the numbers in making your decision. Cost of buying off lease or getting a new lease etc...
I did that and it helped me figure exactly what I could afford. I'm going to try and keep this car for 4 years and I'm pretty sure after I sell my current car it will be paid off in 2 years.

[amd4me]

If it were me I would lease a 335i.

[pruettfan]

Very true. So what year did you buy from Carmax? Was than an '06? Thanks!

I paid 24k for my 06 330i with 49000 miles, loaded. I would say your car is worth 27k since the miles are so low. You'll get good financing on it, it has already depreciated and you know what you have so I think it is better than taking a depreciation hit on an 09. I do love the 335i engine though.

[acthad]

I typically like to keep my cars 3-4 years.

Thanks for any and all suggestions. I am looking to make the smartest financial decision + value/ eye for the future.

You don't drive a lot so, I would just buy it. Your miles are low, and you know the history on the car since you've owned it. So in another 3 years you will have about 35k mi, your car will still be worth $18-22k(no gurantees of course, but it will be a 6 yr old clean BMW) so your depreciation cost is very low.

At 35k mi, you will only need oil, gas, tires, and brakes. It will still feel new at 6 years old, you could drive the car for another 10 years after that, and it still would be in great shape owned by an enthusiast like yourself! Talk about stretching your dollar on a BMW! You lease another car you give up all your equity you have in this car, especially since you don't drive alot!

Only thing on buying it, you have to pay the sales tax on it all over again, but it still worth it vs shelling out Taxes on a new car lease that you don't own all over again. Yes leasing does not make financial sense in the long run for anyone. But most of us love a new car every 3-4 years but it costs us in the long run. The price you pay for the BMW lifestyle.:redspot

[mryakan]

Leasing is profitable for the dealer not you...
WRONG. Leasing or financing is the same to the dealer, they both go through BMW FS who owns and buys/sells the car, and the dealer should not make any money off that if you pay attention and don't let them screw you with the numbers (in either case). In short, selling a car is profitable to the dealer, not leasing vs financing.

OP, here is my advice. Check out what a dealer would give you for your car, i.e. drive around to a dealer and ask them what they would pay for a trade in (without mentioning it is a lease). Negotiate a bit as if you plan to buy another car from them. When they give you a number, take that number and compare it to the cost of buying out your car, and if it is a higher number, then if I were you I'd keep the car, otherwise you would be losing money.

e.g. say you walk into a dealer and tell them I like that MY10 335 and I have this low mileage car here as a trade in. Say you guys agree they will give you 28000 for it. Then in this case I would not buy it out since your payout + taxes are more. However say because of the low mileage and good condition they offer you 31,000 (for argument sake). Say your payout + taxes/fees is roughly 29500, then I would buy it since you can turn around and make some money if you decide to do so, or keep it as acthad said.

[FORDMANWITHA330]

You don't drive a lot so, I would just buy it. Your miles are low, and you know the history on the car since you've owned it. So in another 3 years you will have about 35k mi, your car will still be worth $18-22k(no gurantees of course, but it will be a 6 yr old clean BMW) so your depreciation cost is very low.

At 35k mi, you will only need oil, gas, tires, and brakes. It will still feel new at 6 years old, you could drive the car for another 10 years after that, and it still would be in great shape owned by an enthusiast like yourself! Talk about stretching your dollar on a BMW! You lease another car you give up all your equity you have in this car, especially since you don't drive alot!

Only thing on buying it, you have to pay the sales tax on it all over again, but it still worth it vs shelling out Taxes on a new car lease that you don't own all over again. Yes leasing does not make financial sense in the long run for anyone. But most of us love a new car every 3-4 years but it costs us in the long run. The price you pay for the BMW lifestyle.:redspot

Leasing is not a bad thing. I've leased several vehicles in the past, and bought a few at the end. Additionally, when you lease, you do NOT pay tax on the total/agreed value of the vehicle in whole, thus you are not paying interest on the sales tax. Second, what you do pay is tax on the monthly payment only, plus the lease factor (Interest). When you purchase your lease, taxes are paid on the residual value, or agreed end value only. You can also negotiate to reduce the residual value if you decide to purchase. As previously stated by others, if you keep the car you know what you have & it's history.

Good luck with your venture,

So. Cal. Fireman

[Beer Goggles]

Jesus, if we get into another leasing is bad debate I'm going to snap...if you don't think leasing is a good idea DON'T DO IT. If you want to buy a car and finance it for 5 years and trade it in....good luck on resale.

If you don't understand the benefit of leasing...odds are you got a bad deal on one, and you probably paid too much for you purchase too.

Being an OWNER/LEASER of a 335 all I can say is I'm glad I leased....too many strange issues with this engine for me to say I'd own it.

[mryakan]

Jesus, if we get into another leasing is bad debate I'm going to snap...
+1, and if does turn into that I am towing those discussions asap, we already have an endless thread for that:
http://forums.bimmerforums.com/forum/showthread.php?t=987540 (http://forums.bimmerforums.com/forum/showthread.php?t=987540&highlight=endless)

[Beer Goggles]

You don't put enough miles on the car to lease.
The dealer rep is going to kiss you on both cheeks when you turn the car in with that mileage.
$27.9 is high and the CPO will cost you another $2K or so on top of that $27.9K.
It's going to be hard to get money off that $27.9K payoff with that 17K miles and excellent condition..

What? Not enough? Sure he does. Just lease at 10K a year.

Here's a great thing about leasing...when the market fell apart and ALL car values fell...BMW took the loss instead of me.

[acthad]

WRONG. Leasing or financing is the same to the dealer, they both go through BMW FS who owns and buys/sells the car, and the dealer should not make any money off that if you pay attention and don't let them screw you with the numbers (in either case). In short, selling a car is profitable to the dealer, not leasing vs financing.

Sorry just meant that lease helps a dealer get renewable business since leases have an end and customer would come back for the next one to a dealer sooner than 5 years, so more future biz more profit. But I used to sell cars as well and quit since I got tired of my manager burying people in their leases and making themselves more profit.

Also in Chicago when I used to sell yes you only pay taxes on your lease payments, but it sucks they have a separate taxes on leases for city and county, so our payments would be higher. If you buy out your lease you pay the sales tax on the whole thing again. But this may have changed in recent years. But I will check out the sticky in this forum and get schooled to get current on leasing! Hmmm maybe a 335 can be in my future!:devillook

[Joeb427]

What? Not enough? Sure he does. Just lease at 10K a year.

Here's a great thing about leasing...when the market fell apart and ALL car values fell...BMW took the loss instead of me.

BG,17K miles in 3 years.
He shouldn't lease,IMO.

[mryakan]

BG,17K miles in 3 years.
He shouldn't lease,IMO.

You can negotiate very low mileage leases, less than 10k but I am not sure if leasing is the best option in such a circumstance. Really depends how long he wants to keep a car and how much more a lower mileage car can fetch on the market esp. in a bad economy.

[mryakan]

Sorry just meant that lease helps a dealer get renewable business since leases have an end and customer would come back for the next one to a dealer sooner than 5 years, so more future biz more profit. But I used to sell cars as well and quit since I got tired of my manager burying people in their leases and making themselves more profit.

Also in Chicago when I used to sell yes you only pay taxes on your lease payments, but it sucks they have a separate taxes on leases for city and county, so our payments would be higher. If you buy out your lease you pay the sales tax on the whole thing again. But this may have changed in recent years. But I will check out the sticky in this forum and get schooled to get current on leasing! Hmmm maybe a 335 can be in my future!:devillook

Yes indeed a lease is a good way to get repeat business, but it is no guarantee. I mean one can buyout the car, get another from a different dealer or get another brand altogether. The best guarantee for repeat business is a pleasant experience and a dealer's service is a big part of that.

[Beer Goggles]

BG,17K miles in 3 years.
He shouldn't lease,IMO.


You're opinion or based on what?

Considering if you bought a 50K car and took a 3 year loan (same as the lease term) you're putting out half the amount of money.

Negotiating a lease is the same as buying a car. You can get low mileage leases and save money...or use the car and drive it (17k in 3 years? why buy a car at all?)

But if you bought a car and the market crashes....you can be stuck in it.

[Joeb427]

You're opinion or based on what?

Considering if you bought a 50K car and took a 3 year loan (same as the lease term) you're putting out half the amount of money.

Negotiating a lease is the same as buying a car. You can get low mileage leases and save money...or use the car and drive it (17k in 3 years? why buy a car at all?)

But if you bought a car and the market crashes....you can be stuck in it.

Based on he probably made the payments on a 10K or even 12K per mile lease.
The dealer will love having that car on his lot.The low mielage and excellent condition will hurt any negotiating power he had if he wants to buy the car.
It's a lose,lose situation.
If the market crashes,we all have bigger problems that the value of our cars.

[Titanium09]

I'm leasing a 328i with metallic/premium for 42 months at 2.5%. After 3.5 years, I figure I'll have about 40,000 to 50,000 kms on the car (yes, low mileage) and I can buy it for $21,400. Now that's a good deal! I will probably pay for it cash at that point. I did the math and it would cost me about $400 more in total than financing the car over 5 years. And if it gives me any trouble, I'll just turn it in.

Heck, I can probably buy it at the end of the lease and sell it at a profit.

[ponytrekker]

2006 330 Black/ Black
Body/ paint excellent condition
Only 17,500 miles
sport/ premium
payoff: $27,900
1 year left on warranty

OR

turn it in and buy a new 2009 335i blk/ blk/ sport/ premium
@ .9% financing

or lease a new 2009 335

I typically like to keep my cars 3-4 years.

Thanks for any and all suggestions. I am looking to make the smartest financial decision + value/ eye for the future.
If the car has served you well, do it, though try to negotiate the price

Bimmers are hit and miss. I know some people who have gone to mid 200k with just regular maintenance; others are among the horror stories.

[kostas]

Thank you for all the great responses and info everyone!

Here is what I ended up doing...

I turned in my '06 330i today to BMW of Austin and I bought (through a trusted friend who used to work at the dealership and initially leased me the 330) an '07 335i from an auction in Dallas.

The '07 (late production) 335 Sport is the same color in and out as my 330. But it has the brushed alum trim (something I've always coveted but could never find). Here's the fun part: only 8100 miles, mint condition. $28.5K.

So for virtually the same price, I got a newer car, a bigger engine, 1 extra year of warranty, and the interior look I've always wanted.

[pruettfan]

That is a fantastic deal in my opinion. Plenty of warranty so no issue with it being used at all, heck it is a new car but with about a 15k or more discount when all is said and done.

[Joeb427]

Thank you for all the great responses and info everyone!

Here is what I ended up doing...

I turned in my '06 330i today to BMW of Austin and I bought (through a trusted friend who used to work at the dealership and initially leased me the 330) an '07 335i from an auction in Dallas.

The '07 (late production) 335 Sport is the same color in and out as my 330. But it has the brushed alum trim (something I've always coveted but could never find). Here's the fun part: only 8100 miles, mint condition. $28.5K.

So for virtually the same price, I got a newer car, a bigger engine, 1 extra year of warranty, and the interior look I've always wanted.
Nice!!!:)
No CPO?
You also have a 10yr/120K mile warranty on the high pressure fuel pump.

[omelet1978]

Thank you for all the great responses and info everyone!

Here is what I ended up doing...

I turned in my '06 330i today to BMW of Austin and I bought (through a trusted friend who used to work at the dealership and initially leased me the 330) an '07 335i from an auction in Dallas.

The '07 (late production) 335 Sport is the same color in and out as my 330. But it has the brushed alum trim (something I've always coveted but could never find). Here's the fun part: only 8100 miles, mint condition. $28.5K.

So for virtually the same price, I got a newer car, a bigger engine, 1 extra year of warranty, and the interior look I've always wanted.

Sweet:buttrock

[kostas]

Nice!!!:)
No CPO?
You also have a 10yr/120K mile warranty on the high pressure fuel pump.

True, no CPO so that's one of the negatives. The only other negative is no Premium but I plan on keeping this awhile so I wanted Leatherette and don't need any of the other features.

[omelet1978]

How do you like that leatherette vs real leather?

I came very close to getting a 330i with just the sport and ended up deciding I wanted the premium package features. It doesn't handle as well as the sport, but it's my first bmw and still a lot of fun.

[kostas]

How do you like that leatherette vs real leather?

I came very close to getting a 330i with just the sport and ended up deciding I wanted the premium package features. It doesn't handle as well as the sport, but it's my first bmw and still a lot of fun.

I've had both Leather and Leatherette in my cars, but this time around I chose ette because I plan to keep it for awhile and I wanted the seats to look just as good 4-5 years from now. Also, I have toddlers who will give the back seats a real workout. I've read reports that say the ette also holds you from sliding better than the leather too.

[bimmer335i]

The lease end on my 2007 335i is drawing near. I wanted to toss some info out and get some opinions. This has been a great car for me and I really like it. I mean it's got twin turbos..what's not to like? I realize each car and situation is different so here is mine..

My car has only 16k miles of 30k allowed and my 3 year lease ends in 5 months. It will have about 18k on it at lease end. I work from home now so my car hasn't seen a lot of road in the last year or so. My lease payment is $504/month. I would like(not set in stone) something more in the $350/month range. My residual is $27.5k.

O.K so my car is basic with only the sports package but that means there are less gadgets that will break. I am thinking about buying it at lease end because I love the car and will have already paid on it for 3 years. If I walk away I get nothing. Also the transmission was replaced at 8k miles because they had no idea what was wrong with it. I see that as a plus.

I could opt for a lower lease payment which I would like very much and get into a new 328. No offense to 328 owners but how do I go back from having twin turbos?

I will try name dropping the "full circle purchase progam" and getting a better buyout price and the car CPO'ed if I decide to buy it.

So I ask you..would you buy it? Anyone have an idea of what my payment might be or what rate BMW is offering. If not what options am I forgetting.
Thanks for any ideas..

[omelet1978]

Honestly, for that price if you had the premium package I would say buy it, but 27.5 is a lot for a stripper bmw. You could upgrade to a better one for just a little more I think.

At 27.5 your payment is going to be about $500 and 5 years to pay it off. If you google auto loan calculator you can get an exact number.

I bought a 330i from carmax. Got an extended warranty too and it was a little cheaper than CPO. Maybe that would be a happy medium b/w the 328 & 335!

[Joeb427]

$16K miles?
If you like the car buy it but I wouldn't own a BMW,especially a 335 without it being CPO'd or with an extended warranty.
The fuel pump is warranteed for 10/120 but the wastegates,turbos,sensors etc aren't and it's a matter of time before those expensive items go.Along with other things.
The problem then is you're going to pay $30K for the car.Is it worth to you?
If so,buy it.At least you know the car.

[Beer Goggles]

You love the car that in that low of miles had complete transmission failure?

My HONEST opinion is that I'd never own a new BMW because eventually the maintenance costs would kick you in the balls...twice. I think you could find a new CPO with more options for the same and probably newer with CPO.

A Sport pack 335 isn't a stripper...it's basically what I got and I love it (I would have gotten leather because i hate black interiors)

But you won't be near 350/month without cash down...which scares me to think you didn't even look that up online before asking....

[bimmer335i]

[QUOTE=Beer Goggles;17462253]You love the car that in that low of miles had complete transmission failure?

Yes...despite this obvious failure you could look at this in a positive light. Now my transmission only has 8k on it and not 16k. =) My car has been flawless other than the 3 days they had it to replace the transmission.


>>>My HONEST opinion is that I'd never own a new BMW because eventually the maintenance costs would kick you in the balls

Something I am certainly aware of after owning my last one for 15 years. It's definitely weighing on my decision. Hmmm..that CPO leased M3 is looking better by the minute.


>>>But you won't be near 350/month without cash down...which scares me to think you didn't even look that up online before asking....

I'm not sure what you mean. The $350/month was referring to the 2009 328 lease on bmw's website. While a great car at any rate it lacks something special..like oh..I don't know..turbo's..

[GS4Life]

I would rather buy it out then get a lower model than what you had. IMO. I think a 3 year old 335 is still hott and would blow the doors off a new 328 and turn more heads. So you have to ask yourself, do you just want a new car every 3 years or something you like? I told the same to a guy in the Lexus forums, who's lease was ending and was thinking about buying out his LS or buying a new loaded Toyota Avalon, yeah the Avalon is new, but you currently drive a frigging 70K LS, there is no comparison...These are just my opinions, but i would rather keep my 08 GS for 7 years rather than drive a new IS or ES. Thats just me though.

[mryakan]

So that we don't end up repeating the same arguments, I merged these 2 similar threads. Read through.

[ejssds]

You are in Austin and the BMW of Austin dealership is great about doing deals. I was going to payoff my 330i in December which also had fairly low miles. I was able to work a really good deal on the 335i I have now. I bought this one and will most likely not lease in the future.

PM me and I can get you the name of the rep I worked with. Top notch dealership.

[fshubert]

I too get tired of a car after a few years. Either buy or lease new! Give someone who can't affort a new car your soon-to-be CPO. :)