G87 M2 lease end purchase

Ask the Hackrs
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1

Hi folks, first time posting and hate that I only found this forum 7 months before my lease ends.

Back in December 2023 I signed the lease on the G87 M2, calculator link here.

A few questions:

  1. Is 59% high for BMW or M cars leases in general? Could it have been any better?
  2. Based on all the posts I read through, the best approach is to buy this directly from BMWFS as a positive equity and bypass the dealer. I have not made up my mind yet on what to do with this M2, but can this be also a good enough leverage to go back to the dealer and score a good lease deal?

I am also doubting myself if I made the right choice to lease the car 3 years ago if my plan is to keep it. How I understand it by reading this forum is that, if the plan is to buy, finance it at the time probably cost the least overall. Would that still apply to my case still?

2
  1. RV is set by the lessor (BMWFS), so there was/is no negotiating that. It is what it is at that time.
  2. If you like the car that much, buy it out and keep it. If there’s equity, you are more than welcome to explore cashing out on it and selling to a third party. Dealer doesn’t really care what you do with it… they just want to sell a car :slight_smile: if you do turn it in and get another bmw, BMWFS will just waive your disposition fee. Maybe a small credit if you’re under mileage (very small).
3

Compared to what other option? Paying the full buyout w/o a loan is presumably the lowest cost overall.

An MF equivalent of a 5% interest rate isn’t horrible. The question is whether there were lease- or finance-specific incentives/rebates at the time (probably not on an M car?).

4

Your 36 month lease ends in December 2027 according to the calculator. Did you mean you leased the car in December 2023? What model year is the M2?

5

Sorry I was wrong about the timing. It was signed back in Dec 2023. Lease is ending 2026.

6

ah, I meant lease vs. finance the car at the time. But I guess at this point it’s not worth looking back 2.5 years ago..

7

You are going to have somewhere around $15K in equity for a 2024 M2. Buy it out and then sell it if you don’t have to pay full sales tax on it. Otherwise trade it in on your next vehicle, but only a deal ship with a BMW franchise can buy it.

8

Thanks, when you say

you mean having to pay full sales tax based on the residual value of the car? It seems to be the case for where I am (tri-state) for a lease buyout…

9

You meant December 2026 i think.
Also if you want to sell it try Driveway.com or autonation.com. They are able to buy it.

10

Most states will make you pay sales tax on the RV if you buy out…your RV is 40 and if tax is say 7% your total cost to buy out is around 40+2.8+300 purchase option or about 43 all in…see what 3 year old M2’s are selling for on cars.com or autotrader and compare.

11

Yep…I definitely need some sleep.