Long story short been leasing bmws for 15 years.
About to buy my lease for the first time.
White/red leather 330 Msport manual
Selling price-27,916
Out the door 31,023
CPO fee included
The numbers are the numbers.
Here is my question: I plan on keeping it another 12-15 months
Does it make more send to do option a or b
Option a- 72 month loan 0 down $490
Option b- 60 month loan 2000 down $525
Biggest concern is being upside down in a year.
Any help is appreciated.
Leave the dealership and don’t go back until you know exactly what you want to sign. Making these kind of decisions in the spur of the moment is a great way to light money on fire.
Except they don’t make sense.
Have you made all your lease payments and $27,916 is the residual and the payoff?
$3100 to process the buyout and CPO doesn’t sound worth another 12-15 months of driving to me
Wish i could i am keeping the car. I have extended 6 months and also 5 days.
I have to make a decision now. i am comfortable with the numbers, i have just always leased and never financed and not sure if option a is better than b or if there is something else i should be considering.
I know im not in a good position but it is what it is 
All feedback is appreciated
B. You are paying more faster, which reduces your risk of being upside down. How is this even a question.
Its a question when i have never financed anything before…appreciate your response.
As to the above comment about 3100…i agree it seems like a lot, but so is the 700 payment quote for a base 3 series i got which is 300 more than i am paying now for my sport
I know regardless what i do today it wont be great compared to a few years back but i need a car and rather keep my manual. thanks everyone
How it’s still a question: What is the interest rate on either loan? And how does it compare to BYO financing?
This isn’t the only dealer who can CPO your car (or: skip CPO and pay it off direct with BMWFS). You can shop this aroind.
interest on the 60 month is 3.19 (cpo lowers it a little)
interest on 72 is 4.19
Paying it off direct at BMWfs was an option, to be honest i am ok with going through the dealer, i have a long relationship with them and they take care of me.
The thing i am really unsure of is which loan and terms and length to go with, i do think the option b makes more sense in less risk of being upside down, but i also like the idea of cash on hand.
I appreciate your advice
Bank of America is 2.49% (used from dealer) for 60 months right now, lower if you have a relationship. You can likely do better.
You’re going to service it there, no?
The person who cuts my hair has been for years, and I take care of them at the end of the year, but not $3100. Your dealer made money every time they took care of you.
Leave the dealership. Don’t go back until you have a plan of what to do.
As much sense as this makes, im between a rock and a hard place. I have today and today only to make this deal and thats on me, ive been putting it off forever.
My initial thought was the 2k down 60months but then i liked the idea of having more cash on hand and doing the 72month zero down, but the risk of being upside down is making me lean towards the 60month, 2k down.
I understand many here wouldn’t approach it this way.
i guess in my mind its pay this or pay something crazy for a lease
In that case, leave the dealership and don’t go back until you have a plan sorted out.
That can consist of going to a Starbucks for a couple hours and crunching the numbers. Doesn’t mean you have to go back next week.
Both options have minimal difference and we’re probably talking a ~$500 swing after your 12-15 months of keeping it. I’d keep the 2k in my pocket and just pay the extra $20/month and sell it or trade in when you’re ready for something else.
Setting aside questions of 3100, your conundrum seems to be in choosing the loan?
First, like people are saying, APR is high on both. There are better APRs from third-party lenders.
Second, if you are keeping the car for over the year, you are going to bear a good chunk of the extra interest on 72m loan. Which one to take is a personal financial choice. With longer loan, you end up paying more overall, but your monthly payment is lower. What is more important to you?
Honestly, it doesn’t matter what anyone here is saying. All you’re looking for is validation. Financing and leasing are all based off of something called arithmetic. Not much of a difference. Do what you’re going to do because nobody here is going to change your mind, but don’t expect to get any pity or validation from anyone either.
You’re closer to 4.33 percent interest unless you’re paying additional fees and taxes (on the 72 month loan).
The loan rates are bad and you’re in a poor position due to waiting.
Doesn’t sound like you’re going to leave the dealership without paying them, so best of luck in a year from now and take the time ahead of time to actually get the best deal possible.
issue with going with a lower interest, i would lose the 500 CPO rebate from BMWFS
i can go with another bank but would lose the 500 rebate so its probably the same 3.19 from bmw vs 2.49 from Bof A
Problem with this logic is that is you can get an interest rate that’s a full point or point in a half lower is you’ll save more than 500 dollars over the course of the loan.