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      02-09-2017, 08:43 PM   #1
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Thoughts on leasing CPO?

So I took my car in for service the other day and while my car was getting washed, my SA and I checked out some cars around the lot, and he informed me that CPO vehicles are eligible to lease, and usually have better lease rates?

What are y'all's thoughts on this? (yes I'm Texan, lol) I'm considering it as an option for my next move, but just a little concerned about the whole Maintenance Program coverage no longer being transferrable. But I could always purchase an additional maintenance plan, no?

Other than that, what other factors should I be considering?
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      02-10-2017, 12:09 AM   #2
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I think leasing a used car (as in a CPO) is a pretty poor idea in most cases. One of the biggest benefits of leasing is to get the low payment on a new car, trading the lack of an "asset" for the "all taken care of by the dealer" nature of a lease.

CPOs basically lose that, and do NOT usually have "better" residuals than a new car, because, well how could they? Even though BMW inflates the residuals, and sometimes has specials on CPO cars for lease those numbers do not usually work out to be in a persons favor.

The idea of Leasing a CPO is GREAT for the dealer and BMW though, as they want another 2-3 years under contract, on a car that does not have new car warranty (CPO does not cover exactly the same thing) and maintenance now on the person leasing instead of BMW.

The ONLY thing that it may do is produce a monthly payment that is relatively low, but when you break it down, it usually isnt low enough to be a great deal.

Leasing used cars in general is designed for people who cant afford to get a new one by either leasing it new, or purchasing it. I usually dont have strong opinions because there are different circumstances for everyone, but in almost EVERY case leasing a used car (which is what a CPO is) is not a good idea.. at least for the person leasing its not. Its usually a great deal for the dealership though.
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      02-10-2017, 11:50 AM   #3
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I agree with jjrandorin on this. I went through similar thought process with my latest car. At the time, I was looking to replace my car which was written off by my insurance. At the time, I was unsure about whether I wanted something short term or long term. So I asked my sales guy about short term leasing and the interest rates alone and montly payments were enough to kill the deal.

I went with CPO financed.
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      02-10-2017, 01:35 PM   #4
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You're much better off looking for a low mileage exec demo if looking to save on a lease.
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      02-27-2017, 02:50 PM   #5
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Unless you can find a current year demo or CPO. You will get the new car residuals and money factors, but most times 8-12k off MSRP. This is I got our 535 and 328.
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      02-28-2017, 01:56 AM   #6
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Lease a demo or executive car that hasn't been titled yet. We just leased our 3rd one. You get new car lease rates on the new selling price. For example, our 340 we just leased had an MSRP of 62k, the price I leased it off of was 44k. So in the lease it looked like we put a lot of money down because of the difference.There is a mileage penalty you add in for the miles already on the car, so you want to look for one with low miles.
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      02-28-2017, 11:01 AM   #7
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Originally Posted by I<3BMW View Post
Lease a demo or executive car that hasn't been titled yet. We just leased our 3rd one. You get new car lease rates on the new selling price. For example, our 340 we just leased had an MSRP of 62k, the price I leased it off of was 44k. So in the lease it looked like we put a lot of money down because of the difference.There is a mileage penalty you add in for the miles already on the car, so you want to look for one with low miles.
This is exactly how I got GF a $50K 328d for $375 per month on a 36/12 lease.
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      03-03-2017, 10:18 AM   #8
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Originally Posted by I<3BMW View Post
Lease a demo or executive car that hasn't been titled yet. We just leased our 3rd one. You get new car lease rates on the new selling price. For example, our 340 we just leased had an MSRP of 62k, the price I leased it off of was 44k. So in the lease it looked like we put a lot of money down because of the difference.There is a mileage penalty you add in for the miles already on the car, so you want to look for one with low miles.
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This is exactly how I got GF a $50K 328d for $375 per month on a 36/12 lease.
Interesting. How would I go about finding demo/exec car? Is there anything on the dealer websites that indicates it was used as a demo? Also, if you don't mind me asking, did either of you put anything down? I personally don't believe in putting money down on a lease, unless it's something like a refundable deposit.

Thanks for the the responses everyone! Much appreciated info!
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      03-03-2017, 10:31 AM   #9
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Quote:
Originally Posted by gpjustinn View Post
Interesting. How would I go about finding demo/exec car? Is there anything on the dealer websites that indicates it was used as a demo? Also, if you don't mind me asking, did either of you put anything down? I personally don't believe in putting money down on a lease, unless it's something like a refundable deposit.

Thanks for the the responses everyone! Much appreciated info!
I got mine from Greg Poland at Pacific BMW. Had it shipped from CA to FL and still saved 25% off a brand new one. Car had like 4000 miles on it
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      03-03-2017, 10:43 AM   #10
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Quote:
Originally Posted by mbanks21 View Post
Quote:
Originally Posted by gpjustinn View Post
Interesting. How would I go about finding demo/exec car? Is there anything on the dealer websites that indicates it was used as a demo? Also, if you don't mind me asking, did either of you put anything down? I personally don't believe in putting money down on a lease, unless it's something like a refundable deposit.

Thanks for the the responses everyone! Much appreciated info!
I got mine from Greg Poland at Pacific BMW. Had it shipped from CA to FL and still saved 25% off a brand new one. Car had like 4000 miles on it
I got 10% off MSRP on an exec demo with 30 miles on it. It was never really used as a demo but was originally purchased by the dealer for that purpose.
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      03-03-2017, 10:45 AM   #11
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Never put anything down on a lease, that's my rule of thumb. There are some example demos on Paul Miller BMW site that are zero down rates.
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      03-03-2017, 10:48 AM   #12
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I am actually thinking about picking up a 3rd if I can find a good 4 Series vert as a CPO lease. I would rather not own a vehicle and have the bank/manufacturer handle the financial risk.
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      03-03-2017, 12:34 PM   #13
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Quote:
Originally Posted by mbanks21 View Post
I got mine from Greg Poland at Pacific BMW. Had it shipped from CA to FL and still saved 25% off a brand new one. Car had like 4000 miles on it
Wow! Did they roll the cost of shipping into the lease?
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      03-03-2017, 12:36 PM   #14
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Wow! Did they roll the cost of shipping into the lease?
Unfortunately not but it was only ~$700
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      03-03-2017, 03:06 PM   #15
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You can do a few different things. If you search for used cars (NOT CPO) under 10K miles and they are at a BMW dealer, pretty good chance exec demo. You can also work with your salesman they go to auction once a week and if they know what you are looking for can get you an exec demo. Finally once in a while as a promo corporate lets dealers tag cars as demos to get a pricing incentive but that's by far the most rare compared to the other options.
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      03-03-2017, 03:46 PM   #16
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Quote:
Originally Posted by BEM-S4 View Post
You can do a few different things. If you search for used cars (NOT CPO) under 10K miles and they are at a BMW dealer, pretty good chance exec demo. You can also work with your salesman they go to auction once a week and if they know what you are looking for can get you an exec demo. Finally once in a while as a promo corporate lets dealers tag cars as demos to get a pricing incentive but that's by far the most rare compared to the other options.
Thanks! I only found 2 or 3 dealers within a couple hundred miles of me that have a designated area on their website for retired loaners/demos/execs. I guess I could hunt for more nearby, or entertain the idea of having one shipped.
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      09-17-2017, 09:38 AM   #17
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I suggest you will just look for better dealer or broker who could provide you better lease deal. Also, try to look for a car that has greater demand in leasing with low lease payments.
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      09-17-2017, 09:43 AM   #18
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Quote:
Originally Posted by bimmer456 View Post
I got 10% off MSRP on an exec demo with 30 miles on it. It was never really used as a demo but was originally purchased by the dealer for that purpose.
what kind of car? you should have been able to get better than that. i got 13% off a 340 that was built to order.
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      10-22-2017, 09:58 PM   #19
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Bringing this topic back up, people don't understand this program. BMW will allow dealers to lease their loaners using the new car residuals as long as they are under 5K miles.

As an example I currently have a 340i M Sport that had a sticker of $58K. The Cap Cost was $43K, but the residual was based off of the $58K. Don't remember exact details, but the payment comes to $340/mo for a 24 month lease including sales tax.

I did a 750 a few years ago under the same program as well.
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      10-30-2017, 03:13 PM   #20
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Bringing this topic back up, people don't understand this program. BMW will allow dealers to lease their loaners using the new car residuals as long as they are under 5K miles.

As an example I currently have a 340i M Sport that had a sticker of $58K. The Cap Cost was $43K, but the residual was based off of the $58K. Don't remember exact details, but the payment comes to $340/mo for a 24 month lease including sales tax.

I did a 750 a few years ago under the same program as well.
Loaners are fine and the car is under warranty so who gives a damn if something happens on a car that was driven hard, you can always give it back.

The true holy grail cars are the ones that are exec demos with 100 miles on them. Every now and again corporate gives dealers a few of those designations to hand out with big rebate money coming from the mother land. Those are literally brand new cars. ONLY caveat is once a car is tagged as an exec demo the clock starts on the warranty.
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