How to buy out my BMW X5

Ask the Hackrs Buy/Finance
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1

Hey everyone,

Lease prices are insane now and I am actually considering buying out my current 2019 BMW X5 lease. I have never considered doing this before. Do I really have to basically send them a check for $46K? I am a Penfed member as well and live in NYC. Are there any other ways to pay monthly? Perhaps through Penfed or another Avenue that is not bad pricing wise? Also, my 36 month lease expires in December, one of the reasons I did not want to buy out the car was because of warranty on the car but it sounds like the car warranty goes up to 50K miles? Is that right? Is it irrespective of time? Any insight or tips or opinions would be greatly appreciated

2

You can get a used car loan from Penfed to pay for it.

3

Also, what about warranty? What do I lose at 36 months? Those are one of the reasons I leased to avoid mechanics and stuff.

4

Bmw warranties are bumper to bumper for 4 years/50k miles if memory serves, so nothing happens at 36 months unless you’re over 50k miles.

5

If it was a demo/loaner, the 48m clock could have started before the OP signed their lease.

6

Thanks. I am actually under mileage. I only have 24000. Any reason for me not to do this you think? I am waiting for one broker to post discount rates as a possibility

7

x5 orders are going to be a 4-6 month wait, given how allocations have been happening recently.

8

That I don’t really care too much about because I could extend my lease. I am trying to downgrade to an X3 but don’t want to overpay significantly for that car. For me it’s about the $

9

36 months you loose free maintenance. The bumper to bumper warranty is 4yr/50k.

10

46K for a X5 seems a little high. Is that include Sales Tax also or just the RV .
What was the MSRP and how much you paid for 36 month lease. Add the numbers and see if you getting a good deal. Also find what Carvana will pay you once you buy the X5 .

11

Great question. It’s because I have a couple of months left. Residual is $37k. Plus taxes which sucks.

12

Carvana offer was $49K.

13

Extend the lease and order X3 if a broker can get you good discount . I think Brokers can save you couple of points.

I don’t like driving BMW after 50k or 4 years

14

OP:
If you do buy out your lease, ask if your BMW dealer can CPO it (extends warranty) before you buy it to keep you peace of mind.

Costs to CPO varies by dealer.

Use CU to finance it at a low rate.

BTW, my BMW 528 I bought as a CPO is over 7 years old at 86,000 miles and has been a perfect car with minor maintenance costs.

15

I had 2007 X5 4.8 , 2007 335i and 2004 X3.
X5 was the worst BMW I ever own. Beauty to Drive but nightmare as far as maintenance and major issues. X3 and 335i no issues except need to replace the Turbo on 335i under warranty.

X5 was build in NC and X3 and 335i were build in Austria I think.
I will not keep an X5 build in NC after warranty.
If Dealer can CPO then you have peace of mind for 2 more years I think.
Mine X5 and 335i were CPO.

16

Guys. I am so torn on what to do. I have another couple of months until my BMW lease is up. I can 1) extend my lease and hope things get better but some people think it will get worse. 2) I can get an allocation now and overpay a bit but I do have positive equity in my car now and dealer willing to give me considerable $ towards my new lease for it. What do you guys think?

17

What would happen to your lease number if you contribute all proceeds from your current car towards a new lease? The closer they are to inflation-adjusted current payment, the more sense this transaction makes, in my mind at least.

18

It would decrease it by like $180 a month. But I was thinking to get it as a check to me instead. Thoughts? Any guesses on how life will be in December/ January?

19

I wouldn’t expect BMW to be looking any better then.

20

Assuming that in normal times, you’d just walk away from your lease and got a new one for approx the same monthly, I do not see why you are hesitant to execute the same strategy now.
Seems like you are perfectly hedged?