BMW CPO Lease w/ neg eq trade in

Hopefully you guys can help me. I’m trying to find out about leasing a CPO BMW. I talked to the dealer today, they did confirm that BMW Financial does lease CPO vehicles, but they wouldn’t give me any numbers or info until I chose a car. I’m looking for an X5 50i, but they only have 35i’s, so I was unable to get info from them.

Ah, but that’s not the end of the situation. I need to trade in my 2015 335GT, which I bought new on BMW Select and has close to $10k in negative equity. I assume that difference is going to be put into the lease (thereby raising my payment by $417/mo over 2 years or 278/mo for 3 years)?

Here’s the kicker, I’m trying to lower my payment, because I’m closing on a house next month and don’t know the exact monthly costs that will be associated with it. My current payment is $718 (I pay $725).

Can anybody help me? I’m lost. I’ve always bought my cars, but now after being upside down on 6 straight cars, I’m done with it. I want to lease and not have to worry about it.

Thank you.

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Thanks for posting for me. No idea why the forum wouldn’t let me post myself.

So you want to lease an X5 50i for 24 months for $300/month or 36months for $440/month (before rolling in the neg equity)? This is not happening. I’m pretty sure you can’t even get the X5 50i for $718/month if you didn’t have any neg equity at all.

I don’t think its that out of the question. They offered a new one with a $85k sticker for $969 a month with nothing down, so 3 year old CPO thats already lost $35k in depreciation and theoretically shouldn’t lose at such a fast rate should be far less. I’m also willing to put down $2-4k, which will offset part of the negative equity.

Are you sure BMWFS wasn’t referring to leasing CPO Elites (demos/loaners)? I’m not sure what kind of deal you can get with a 3 year old X5, but I’ve heard lease deals on those might be worse than new. Plus, you might want to set aside some extra cash since it would be out of warranty.

@RVguy might have more info on leasing of older vehicles.

Oh me oh my. Here’s my advice regarding a new lease luxury SUV. Trade in the car, lease an XC90 and you will lower your payment and get a vehicle which is better than a CPO X5 50i. I test drove the X5 for the performance event last year and it was a pedestrian vehicle (it was the 40e I believe). It had all the bells and whistles but the XC90 oozes more luxury.

On the other hand, why do you need to trade your car. Negative equity is a paper loss. The longer you keep your vehicle the lower the negative equity … And it will eventually be paid off and you will own it free and clear. You can also lower your payment by refinancing the car loan at a credit union …

Do you trade your cars often? You’ll be upside down regardless of whether you own or lease.

Yes Jon, it’s regular CPO vehicles. I had such a hard time getting it verified (dealers don’t even know), but apparently BMWFS can lease any CPO vehicle thats under a certain mileage and will still be covered by the 6/100 warranty at the lease end. Whether or not its worth it varies a lot though. I’ve heard that on newer ones or longer terms, it sometimes ends up being within a few dollars of new.

XC90 is out completely. I test drove a T8 R-Design and was immensely underwhelmed. 4 cylinders in a luxury vehicle doesn’t work, especially one thats over 2 tons. You can turbo it, supercharge it, and boost it with electricity, but it still feels weak.

I don’t need to trade my car right now. I’m never going to be at a point where its not negative though. The BMWSelect has 5 years worth of payments and then a balloon payment at the end. Theres no way I’d keep it past 4 years. I’ve owned a BMW out of warranty, and it wasn’t pretty. That will never happen again. Anyway, even after 4 years, it’ll still have over $30k left on the loan ($718x12 + the $24k balloon), and right now its booking at around $31k. In 16 months when the warranty expires, it’ll be worth low-mid $20s, or still about the same negative equity. Thats why refinancing won’t really work either. It’ll get the lower payments, but the negative equity will grow since I’m paying less. If there wasn’t a finite time I had to get rid of it by, that would be a great option and would save me $140 a month, but knowing that it’s got 16 months left at most, it doesn’t seem like a good idea. :frowning:

Not nearly as much as @smackdownX but yes, I do tend to trade cars in more frequently than normal people. I get bored easily.

You can lease cpo cars, however only the 3 and 5 series have support from BMW, so even though BMW financial services will lease other cpos if they meet certain requirements, it’s a really weird equation, and rarely is much cheaper (sometimes even more expensive) than brand new leases. So the x5 cpo lease would be based on a dollar amount, not percent, and there would be sort of a mileage deduction, that’s why you need to pick the vehicle before they can tell you lease prices, because with the exception of the 3 and 5 series, they all have very different lease terms.
So I say all that to say, you probably won’t find what you’re looking for, a cheaper payment, by leasing a cpo and rolling in all that negative equity.

Everything I heard from the Bimmerfest site, suggest that leasing a CPO BMW is a bad deal, that’s why it doesn’t happen much at all. BMW financial will set the residual very low along with the high buy rate MF, it will be a terrible deal. X5 or even an XC90 are expensive cars to lease or buy at the moment, those will not lower your payment, especially factor $10k of negative equity in the deal.

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Yes, I forgot about the higher money factor too, also something that will make the lease very unattractive.

So do you think a 550i would work out better? I almost ordered one when I ordered the GT, so its definitely an option for me. I need to check around and see whats out there. I’ve also been recommended a new Infiniti Q50 Red Sport, which are currently selling for 16% under MSRP, which should cover the negative equity.

It would be better than an x5 cpo probably (I don’t think all models of the 3 and 5 series get support, just some of their most popular models) but with the higher base money factor, and very low residuals, I still don’t think you’re going to get a much lower payment than with a new one. Also, it would still depend on how many miles the car has. The reason why many dealers don’t know about this program is a lot of times it doesn’t make sense to lease a three year old vehicle for almost the same price as a new one, and that’s typically what happens.


Went to the dealer today. CPO isn’t working. Payments are right there with new. They can do a 2017 Loaner, 4k miles with the 6 cylinder for $609 with $4k down. But the negative equity adds $270 more, so that kills that.
Went to the Infiniti dealer, Red Sport lease works out fine. One little problem… I don’t fit in the car. My head hits the roof.

The search continues. May end up leasing domestic for a couple years to get rid of the negative equity and then trading up.

If I had that much negative equity, I would get the cheapest car possible. Like a hyundai or kia…it is silly to roll in that much negative equity. Or I would just buy a car outright until I am in a better financial position.


I just wanted to update this. The negative equity is gone for now (see below). I took care of it. It wasn’t nearly as bad as I thought it was. I thought it was ridiculously high because the values I was getting were lowballs. This past weekend I went to 6 dealers though and all were $5-6k higher than my original offers, putting the negative equity in the $5-6k area.

That helped little on the CPO lease though. They’re giving money factors of .00250 and 52% residuals, which is ridiculous. I talked to one of the dealers about a new X3 and BMWFS is giving .00175 and 64% on them. Too bad the seats are awful, or I’d go that way.

The one thing everybody agrees on though is that its gotta go. If I stick with the BMW Select until its paid off, I have 7 more years with it, and thats not happening. Meanwhile, the car is losing about $900 a month in depreciation, and I only pay $725, so it gets negative every month. Refinancing lowers the payment, but extends the time and raises the rate, while going even further negative every month.

The search continues…