I have finally found a vehicle that seems to be a fair deal, it is a 2021 M340I with very low miles that is currently under a lease and the current leasee wants out of it. My plan is to purchase this vehicle but I am trying to figure out what my best option will be. As of right now we are planning on doing a lease transfer(seems the easiest way to handle the original transfer of it), there are 30 months left on the lease and the current lease is just under $700 in Chicago (but plated out of another state). The cars MSRP was 68k and current payoff is 56K. My question is am I better to ride the lease out and buyout at the end or buyout right away or maybe somewhere in between?
Lease provides some benefits - ability to walk away if the car turns into a lemon in the next few years, or if you have an accident, etc. You retain the option to buy but flexibility to walk away.
You should try to figure out what that costs you vs. alternative of buy now…
How much of the current monthly payment goes towards interest (aka “rent charge”)? Or another way to think of it, what’s the interest rate on the lease (or MF * 2400)?
If you buy now, are you paying cash or financing, and what is your “cost” of that alternative?
Compare the net difference and see if it’s worth it for piece of mind of the walk-away option.
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There’s no benefit to an early buyout. Wait til the very end.
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