[Sportstick]

Now that it's 2020 (Happy New Year!), I have less than a year remaining on my 3 year lease. I've accumlated only ~14k miles in two years, although allowed 30k by this coming December. I'm liking the car in so many ways, I thought I might keep it.

Has anyone else recently been through the lease-end process with a model now declared an official "orphan"? I was wondering if some of the lease-end incentives I've heard about with others are happening for the Gran Coupe. If I apply what I've heard about some other 3 Series to my official residual, I might be able to buy this car for about $25k-$27k which seems tempting.

Experiences? Thoughts? Thanks!

[Billfitz]

If the price is right buy it. You've put way too much $$$ into it for the miles you've put on it.

[Sportstick]

Originally Posted by Billfitz

If the price is right buy it. You've put way too much $$$ into it for the miles you've put on it.

Actually had what I thought was a great lease deal after lots of wrangling. Zero down, $492/month for 36 month/10k year. MSRP was $51k. Plus $500 BMWCCA rebate. At least, I thought it was a great deal...

[capt_slow]

I was in the same boat as you last month.

You got some time until your lease ends. My recommendation is to drive it until month of your lease-end and get a payoff quote from BMWFS. It will include any customer purchase promotions to reduce the payoff (mine was $4500). Based my observations, the figure is based on the year and model of your car, but is always around $4k . You can also extend the lease by 2 months and wait out for better incentives.

What I would have done differently is get the BMW extended warranty early (if you get one). Pricing increases as you put more miles on the car, so if you plan to keep the lease get the warranty early. If you decided to return the lease, you can get a pro-rated refund.

[Sportstick]

Originally Posted by capt_slow

I was in the same boat as you last month.

You got some time until your lease ends. My recommendation is to drive it until month of your lease-end and get a payoff quote from BMWFS. It will include any customer purchase promotions to reduce the payoff (mine was $4500). Based my observations, the figure is based on the year and model of your car, but is always around $4k . You can also extend the lease by 2 months and wait out for better incentives.

What I would have done differently is get the BMW extended warranty early (if you get one). Pricing increases as you put more miles on the car, so if you plan to keep the lease get the warranty early. If you decided to return the lease, you can get a pro-rated refund.

Thank you!

[Billfitz]

Your deal wasn't bad if you were driving it 830 miles a month, but you've only been driving it 580 miles a month. That's like renting a three bedroom apartment but only using two of the bedrooms. As a result you've put a fair amount of equity into the car that you should benefit from, not the dealer. Chances are you can. Since the GT isn't a hot seller the dealer would probably rather wheel and deal with you and not be concerned with selling it if you bring it back at lease end.

[Sportstick]

Originally Posted by Billfitz

Your deal wasn't bad if you were driving it 830 miles a month, but you've only been driving it 580 miles a month. That's like renting a three bedroom apartment but only using two of the bedrooms. As a result you've put a fair amount of equity into the car that you should benefit from, not the dealer. Chances are you can. Since the GT isn't a hot seller the dealer would probably rather wheel and deal with you and not be concerned with selling it if you bring it back at lease end.

Got it, thanks!

[capt_slow]

Originally Posted by Billfitz

Since the GT isn't a hot seller the dealer would probably rather wheel and deal with you and not be concerned with selling it if you bring it back at lease end.

This isn't quite correct. Since he/she is the original lessee, the dealer is required to sell him the car at the payoff quote (usually residual less some standard discount set by BMWFS). Assuming BMWFS doesnt change their stance by the time OP is ready to buy out the car.

That said, you can shop around for CPO and warranty prices. CPOing your car unlocks some good interest rates. At the moment, CPOing a car and getting the rate is better than going with a 3rd party bank. For my car, the CPO cost quoted by dealers was anywhere between $1400 and $3700, not including any reconditioning.

[Billfitz]

The dealer is required to sell him the car at the contracted lease end value or less. If faced with taking in a car that he'd rather not have on his lot he'll find a way to sweeten the deal. As with any negotiation the OP needs to go in with a firm figure in mind, and be prepared to walk if he doesn't get it. If the actual resale value of the car is substantially less than the buyout price the OP has got a lot of leverage.

[Sportstick]

I'd buy it outright, so I would not need to be concerned with interest rates. The MSRP was $50,395, Adjusted Capital Cost for the lease was $42,084, and residual $30,741. Total of monthly payments = $16,376 over three years. If I can get this car between $25 and $27k, I think I would be a buyer. From capt_slow's experience, it seems this may be doable. I assume the incentive comes from BMWNA and/or BMWFS?

[capt_slow]

Originally Posted by Sportstick

I assume the incentive comes from BMWNA and/or BMWFS?

Correct. It's part of your payoff letter from BMWFS. If you generate one now from myBMW, it will have little to no incentive. Keep an eye on it and generate a new letter as you get closer to the last month.

[Sportstick]

Originally Posted by capt_slow

Correct. It's part of your payoff letter from BMWFS. If you generate one now from myBMW, it will have little to know incentive. Keep an eye on it and generate a new letter as you get closer to the last month.

Thanks again. First time leasing after all these years so appreciate the voices of experience!

[BEM-S4]

Originally Posted by Sportstick

Thanks again. First time leasing after all these years so appreciate the voices of experience!

You have to be 90 days out from lease-end, then your dealer can check with BMW for incentives. It's not like the old days where they could do some "creative maneuvering" on your behalf. Now it's all straight from BMW, whatever they offer they offer. It can change each month through the end of your lease, but they typically do some sort of purchase incentive. My wagon it was a lot, my convertible not so much.

You can also get the car CPO at that time for a fee, and if you finance through BMWFS they give you a discount on the interest rate if you also include maintenance to the point that maintenance is free.

No actual negotiating for you to do, just get the info and make decisions. My 2 cents, I'd pay a premium versus market value for a car I've owned since new and don't have to worry about any surprises. Say the car is worth $25K used, 5-10% premium to keep my own car with CPO and included maintenance out through 100K makes a lot of sense.

[Sportstick]

Originally Posted by BEM-S4

You have to be 90 days out from lease-end, then your dealer can check with BMW for incentives. It's not like the old days where they could do some "creative maneuvering" on your behalf. Now it's all straight from BMW, whatever they offer they offer. It can change each month through the end of your lease, but they typically do some sort of purchase incentive. My wagon it was a lot, my convertible not so much.

You can also get the car CPO at that time for a fee, and if you finance through BMWFS they give you a discount on the interest rate if you also include maintenance to the point that maintenance is free.

No actual negotiating for you to do, just get the info and make decisions. My 2 cents, I'd pay a premium versus market value for a car I've owned since new and don't have to worry about any surprises. Say the car is worth $25K used, 5-10% premium to keep my own car with CPO and included maintenance out through 100K makes a lot of sense.

Really good information....thanks again...as usual!

[BEM-S4]

Originally Posted by Sportstick

Really good information....thanks again...as usual!

Your only variable is you might get a bit better deal on CPO charge from one place versus another, but not enough $ at stake to spend more than 15 minutes calling around a bit. TBH I'd handle everything wherever you plan to get the car serviced, I am a huge fan of single throat to choke.