I’d like to lease a used low mileage CPO, but 2 year old BMW 550i. BMW will not lease this as its old and I’m not interested in purchasing it as I’ve learned my lesson on trying to unload a used out of warranty BMW in a few years.
That said, I know that Ally will lease used 3 and 5 series and X3s… no other models. I know that they also ‘include’ an aftermarket extended warranty on all cars leased on this program.
I also know that they will only do this with participating dealers. The car is at one of these dealers based on Ally’s dealer locator.
What I don’t know is what any of the terms might be. Residual Values, MF’s etc. I’d like to learn as much as I can about this option before contacting the dealer as they dont have a good reputation of being upfront with good deals. (They often markup MF and other factors to make their money).
So can anyone educate me on this or tell me where I can look for more info on the program?
Leasing used cars are almost always more expensive than leasing the car new. There have been several threads on this forum. Search and you will come to the same conclusion.
I’m aware that this almost certainly the case. What I’m reading is that Ally is trying to make an impact in this area with this program that is barely starting to now launch through their Clearlane subsdiary. I’m sure I’ll end up finding out its not worth it but would still like to learn the particulars of their offering. 5% chance maybe we’ll find out something new?
Well I’m no genius at figuring this shit out but heres what I got so far.
I’m looking at a 2016 CPO 550i. Asking Sales price: $48,895.00
Using the guide, the residual for 36 months 15k a year (I can’t quite figure out how to figure out a 12k lease which is what I’d want). is $28,286.00. They don’t list percentages, there’s a specific $$ they list. This is assuming its got 30k miles. You adjust up the residual if the car has less. Its got 16k miles on it. I can’t figure out how to do the calculation, but the max you can adjust it up is by $1000.
So lets assume the residual value is 29,286. Which isn’t horrible its 60% roughly of the initial sales price.
Now they provide this example calculation:
Payment Calculation: 36 Months – 3.25% Rate
Net Cap Cost X Net Cap Cost Factor = Net Cap Cost Payment
$30,000 X 0.0291127 = $873.38
Residual Value X Residual Factor = Residual Value Credit
$13,800 X 0.0263403 = $363.50
Net Cap Cost Payment – Residual Value Credit = Monthly Payment
$873.38 – $363.50 = $509.88
They dont explain what Rate applies in their table, my guess is this is up to the dealer how much they want to charge based on how much they wanna make.
If I use their 3.25% example using their lease factor calculations I get:
48895 x 0.0291127 = 1423.465467
29286 x 0.0263403 = 771.4020258
1423.465467 - 771.4020258 = Payment of: $652
I’m fairly certain i’m off on quite a bit of this given fees and taxes that aren’t included yet even if theres a downward adjustment for a 12k lease vs the 15k assumed… But even if ballpark $652 is pretty damn high for a several year old 550i, even if it is low mileage and CPO.
So @Jon your point is pretty much proven… still too expensive to lease vs new. Shame. The car is gorgeous and looks pristine. I was hoping this would have been the answer to my goals as I love the F10 compared to the new 5.
The first document listed “Revision 1
March 1, 2018 to TBD” is a PDF that opens up a 359 pg PDF. IT loads for me if for some reason it doesn’t load for you (beacuse I think it should be behind a dealer portal of some sort but I have no credentials so not sure why it works for me)… You can PM me your e-mail address and I can e-mail you the PDF.
From there page 241 has the info on the 2017 BMWs, and then on. Go to the 2016 page, find 550i scroll over to the middle column and you see the RV listed at 28286. Car has 15k miles not the 30 that is listed in the guide you bump it up by a factor that I dont understand so I just maxed it out get a ball park, the max is $1000 bump up for lower mileage than the mihimum in the range for a 2016. that got me to 29286.
