This was my first car lease (honestly not sure if I got a good deal but that’s in the past) and I am now concerned with if I should lease another BMW (or car) or buy out the car and would like any helpful advice. Attached is a picture of what the dealer offered when I did my return inspection and what I initially put down.
2017 BMW X1 sDrive28i (cold weather, driving assistance, m sport, premium package) - I am at 13k miles
Suggested Retail: $43,885
Agreed Residual Value: $26,769.85 (with discount - $24,269.85)
Costs to consider:
$200x2 for dents on the front
Benefits to consider for new lease:
($300) Mileage credit (I am only at 13k miles for the past three years and had 10k per year)
($350) Sticking with BMW and not having the return fee
I have been putting off figuring out what to do next because I am not exactly excited to be getting a new car during these covid times so I have extended the lease for a 2nd month now and it’s just money down the drain.
Any suggestions appreciated! Lease a new car? Buy a car? Buy this car?
I think you need to double check the buyout process. The residual value is the buyout, no discount. The dealer cannot give you a discount on a car they don’t own.
Have you also checked Vroom/Carvana to see what the market value on the car is?
Am I reading correctly that you put $7700 down on a lease? If so, you’ve already invested so much money into this car that I’d just buy it at that point.
After a brief search on used/cpo for these, looks like you’re getting a good deal at $24k w/ 13k miles, well optioned.
Now, if you were to lease a similar vehicle (BMW under $45k), you’re probably looking at ~$2k drive offs and ~360 including tax. ~$15,000 for 3 years
If you purchased your vehicle, drove for 3 years, and sold… you’re probably looking at $26.2k w/ tax minus whatever the selling price is after 3 years.
Let’s say it’s $17k, (right now there are 2014 X1’s with 55k miles for $16k, so we’ll adjust for your lack of driving and options?) Then you’re looking at ~$9,200 for 3 years.
Is the dealer selling your car to you at that price ($24,269) as a refreshed CPO car? If so, I think you get another year or two of warranty, which is nice. Combined with CPO financing it could be a good deal compared to leasing another X1 for three years… which is basically the same car.
I stand corrected then. I did not know that BMW did a discount like that. You see all the time on the threads of people stating they want to negotiate the buyout at the end and they’re always told no there is no negotiation the residual is the final buyout at lease end. That’s my bad for not looking into that further.
About a month before my lease was up, I got a call from my dealership about the discount offer with an additional $500 off if the vehicle qualified for CPO. Then I went on BMWFS to see what the buyout was, and it was literally the same thing word for word that the dealership told me. The dealership is relaying BMWFS’s offer to OP. It says on the website of BMWFS that BMWFS does not negotiate buyout prices, which is where I assume people are saying there is no negotiation. But BMWFS 100% is currently giving discounts to the buyout on the contract considering I just got one for 6,500 off.
Honestly it’s a bit scary if you can’t tell whether this was a good deal or not.
Also, your current level of knowledge around leasing is definitely not something that’s “in the past” and will have a direct bearing on whether you get ripped off again or not.
I have read many posts here stating that a BMW dealer cannot buy the car at the lower dealer price and then sell it to the former lessee. However, as others stated in this thread, BMW is offering some lessees an opportunity to buy the car at a price lower than the RV. That lower price, which will show up in your online account with BMW, apparently is not negotiable.
I’m in the last month of Mini lease now. When I talked to Mini Financial last month, they offered me a $2000 discount. I told them we were still $6000 away from the actual value of the vehicle and was told to check back closer to my end date as they sometimes increase the offer as it gets closer to lease end. Thought that was interesting as I’ve never had a captive offer anything like that.
Have you checked what carvana / vroom / carmax are offering for your X1?
There is a shortage of used cars right now, so the offers are strong esp. since yours is really low mileage.
In my view, lease extensions are not necessarily money down the drain. You put down a substantial amount of money to get down to $310 p/m. May as well extend it as far out as you can (esp since typically extension payments chip away go towards the principal anyways)
Due to the supply glut, deals are not as strong as they were earlier in the year. I would extend as far out as I can till supply starts to normalize, then I’d snag a good deal for myself.
Personally I wont buy it out since I don’t like X1s. That being said, disregard posters telling you to buy it out since you put 7k down. I didnt read most of this thread but that $7k should not influence your decision. It doesn’t impact the residual. That’s a washout at this point.
If you really don’t understand, read through leasing 101 and the bmw leasing wiki, or use a broker and save money. An effective of 550/month on a x1 puts you into stupid expensive lease territory.
