Having a hard time finding a straight answer for this but figured this is the right place.
I am currently leasing a 2021 BMW 330E with M Sport/Convenience/Dynamic Handling Packages. Brand new when I ordered it and had it delivered.
MSRP $51,570 Savings $8,608 at time of purchase included some rebates/ Clean Vehicle credit etc Adjusted Price $42,962 BMW FS fee 1,293 Total Purchase $44,255 Doc Fee $85 Tax $337 Nontax Fees $1,552 Balance $46,229 Down payment $1,500
36month lease - Expires Nov 28, 2023 - 10k/miles a year
Current odometer reading: 20,404 miles
Base Monthly Payment $496.61 Monthly Sales Tax $47.18 Total Monthly Payment $543.79
Residual $29,910
Located in Los Angeles, CA - Should I just finance the deal and take whatever the best rate I can find today is or should I extend the lease 2-more months assuming that my current lease payment is at a lower APR then buy it and bank on rates either being the same or come down?
I don’t mind keeping the car longer and finding something else when it comes up and trade-in especially since the KBB value / what BMW is offering is around $36k now. Leasing the same car makes no sense and it doesnt really make sense for me to downgrade.
Also i’ve had three BMW leases before and never purchased at the end of my lease, any recommendations for warrany/CPO anything I should do or be aware of?
…? Whether you should buy out now or later? There is no stock answer, it depends on the math in your situation.
You don’t have to even think about extending until the end of September. You didn’t tell us your MF, I suspect it’s lower than a used car finance rate would be now, but anything you do will be at a higher rate.
When you buyout, you’ll owe sales tax (could be rolled into a loan potentially), and if you do so near disposition you will likely also need to renew your registration.
If you’re keeping the car, you can request your payoff from BMW and send them payment. Check your local bank and CU, there is a thread here about purchase rates.
If you want something more hands-on:
Your car came with a 4y/50k factory warranty, you can purchase an extended warranty if you think you will own it past that point.
If you like the 330e I’d probably keep it, refinance the buyout with my bank or CU closer to disposition (Halloween) and set a reminder to check about the warranty every 6 months to decide if I need to do something about it. I don’t see a reason in your case to extend the lease 2 more months if you’re going to buy it.
Have you looked at the cost to lease a newer 330e or 330i? It seems you currently have some equity in your car, if BMW is offering $36K in trade. You could use the equity to lower your new lease payment, or simply take the cash. New lease interest rates are likely lower than used car finance rates. Unfortunately you missed the Loyalty lease promotions that ended last month which would have saved you even more.
Does it have to be a 330e? Seems to me you should be able to do much better than $700 a month on a new 330e with the equity in your current lease. A new 330i should be close to your current payment with the down payment. Most recommend not to put anything down on a lease, but you also have to be comfortable with the payment. Not good if you spend the equity on a vacation, but are still stuck with a higher payment. Do you get a tax credit in CA for a trade in?
There really are not any right or wrong answers as far as what to do. You could use your equity to go into another BMW lease to keep a lower payment or cash it out as stated in other replies. If you decide to buy out your lease as far as warranty goes you could extend the manufacturer’s warranty for a total of 7 years/ 100,000. If you go the CPO route through your dealer you would have 5 years from in service date unlimited mileage warranty with the ability to purchase 1 to 2 additional years. However, keep in mind your car would have to pass CPO inspection as far as tires, windshield, brakes, etc and if it did not you would incur the expense. So, I guess it comes down to the number of miles you drive and the amount of time you would plan on keeping.
