Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Buy out lease - under miles and I love the car

jerseygirl38jerseygirl38 Posts: 3
edited May 26 in BMW
My 2017 BMW 2 Series lease is up in a few months, and I'm WAY below the 36,000 miles that I bought. I will soon hit 20,000, so with the quarantine, I'm sure I'll still be way under when it's due in September. I love the car and since I feel that I've already bought the miles I haven't used, I think (please correct me if wrong) that it would be wise to buy the car, which is in excellent, garage-kept, condition.

The residual value on the purchase paperwork is $26,059; 36 month lease started 9/14/2017. Monthly payments (including maintenance package) are $613. Today's (5/26/2020) payoff is $26,780.13. That's only $721 more than the payoff, and I was expecting to pay another $613 for June, July, and August. Sounds like a no-brainer to pay it off ASAP, right?

I compared the value to comparable used cars, and it's within the range of what I see out there - some are less but they have much higher miles. I learned here that the finance company doesn't negotiate; only the dealer does, and I don't think I have much leverage to negotiate, nor do I really have the stomach for it unless it's clearly and substantially to my advantage.

Are there other "gotcha" items that I need to be concerned about, like hidden fees or penalties? What else should I look out for, and how is the maintenance package affected? Did I only pay for it up to September, 2020 and then I'm on my own?

Thank you!!!

Comments

  • kyfdxkyfdx Posts: 171,132

    My 2017 BMW 2 Series lease is up in a few months, and I'm WAY below the 36,000 miles that I bought. I will soon hit 20,000, so with the quarantine, I'm sure I'll still be way under when it's due in September. I love the car and since I feel that I've already bought the miles I haven't used, I think (please correct me if wrong) that it would be wise to buy the car, which is in excellent, garage-kept, condition.

    The residual value on the purchase paperwork is $26,059; 36 month lease started 9/14/2017. Monthly payments (including maintenance package) are $613. Today's (5/26/2020) payoff is $26,780.13. That's only $721 more than the payoff, and I was expecting to pay another $613 for June, July, and August. Sounds like a no-brainer to pay it off ASAP, right?

    I compared the value to comparable used cars, and it's within the range of what I see out there - some are less but they have much higher miles. I learned here that the finance company doesn't negotiate; only the dealer does, and I don't think I have much leverage to negotiate, nor do I really have the stomach for it unless it's clearly and substantially to my advantage.

    Are there other "gotcha" items that I need to be concerned about, like hidden fees or penalties? What else should I look out for, and how is the maintenance package affected? Did I only pay for it up to September, 2020 and then I'm on my own?

    Thank you!!!

    Where do you live?

    Dealers can't negotiate your buyout for you. If you want to buy that car, you have to get it from BMWFS. (BMW has restrictions on BMW dealers... that have to pay a penalty if they sell the same car to the lessee)

    I would double check your payoff, as it isn't usual for the current buyout to be much less than the residual minus the payments. Make sure that is the payoff for YOU to buy it, and not a dealer payoff. Also, you'll likely have sales tax added to that amount.

    Be aware that most captive finance companies won't provide financing at a decent rate (or at all) for a lease buyout.

    Expect your 60 month finance payment to be nearly the same as the lease payment you've had for the last three years.

    Double check the value of your current vehicle.
    Which 2-series is it? What was the original MSRP?

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

Sign In or Register to comment.