[dnd108]

All,

I am in a little bit of a pickle. here are the facts:

1. I think I've negotiated good lease price for 535xi M-sport with almost all bells and whistles for $600/month (no money down, other than tax, tags and processing fee), MSRP was $73K

2. residual is $46K and change (very high)

3. trade in value of the car on KBB (I don't have access to nada guides) is between $24K - $26K, I suspect Carmax would offer me similar amount

4. Lease started in August 2015 and I already have 46K miles on the car (36K miles included in the lease)

5. With 4K miles left before the warranty expires I have maybe 2-3 months left

6. Dealer is giving me runaround not willing to even talk about lease buyout price saying there are 12 more months of lease left

I would like to keep the car and buy it, and I would like to get extended warranty or have it certified but that needs to happen before 50K miles, so very soon.

What are my options here? Can I negotiate end of lease buyout now (10-12 months early) and roll the remaining lease payments into it? It looks like I cannot drive the car much before the warranty expires and I need to continue paying for lease payments, until 36 months of lease are up (is this true)?

Considering that the trade in value of the car is $26K max, do you think that the dealer would sell me the car for about $27K and in that way still make $1K-$3K profit?

Are there any other options that I can use to buy the car now and negotiate reasonable end of the lease price? If I do that, would I still have to pay for excess miles? I have 46K, 36K miles are included in the lease.

Worst option would be that I need to buy another car to drive for a year until the lease ends (so I don't go over 50K miles so I can get it certified or buy extended warranty) and then even if I negotiate good end of the lease price I don't want to have to buy 2nd car or own 2 cars.

Please help

[IndotagSwizz]

you will start getting offers once you are 6 months away from your lease ending, take whatever they give you and get out of that lease or you will lose big time if you wait till the very end of your lease. Their deals will offer to put you in a similar car for a similar payment and for you that will save you thousands of dollars.

[Alcenos]

I would contact BMW of North America / BMW Financial Services, assuming that is who you have the lease through. There is no incentive for the dealership that you got the lease from to work with you.

[Quicksilv3r]

Originally Posted by dnd108

Are there any other options that I can use to buy the car now and negotiate reasonable end of the lease price? If I do that, would I still have to pay for excess miles? I have 46K, 36K miles are included in the lease.


Please help

I think regardless of what happens, you'll be held responsible for paying the excess mileage fee.

[TTG]

Also most likely dealer will not negotiate that $46K residual price with you.

Your options are VERY limited given the situation you got yourself into.

Like stated above, you are going to be stuck paying the excess mileage fees while returning the car.

Buying it out of a lease currently is not an option for you as I am sure buy out is probably within $55K range today.

No one will take over that lease.

Try to buy excess mileage for cheap before it is too late.

You should of never leased if you are driving 25K miles a year.

[SilverRevlis]

I think your best bet would be to quickly price out the extra miles that you need. Not sure if you can pay via Credit Card for the extra miles, but find a 0% card with substantial perks or cash back, buy the miles that you need and drive the car as little as possible. Possibly even rent a car or buy something cheap cash to get back and forth until BMWFS swings some early termination deal your way. This is going to be uncomfortable anyway you look at it. Hopefully these miles were for company use and you own your own business and write-offs will help......just trying to be positive.

[visualguy]

Originally Posted by TTG

Also most likely dealer will not negotiate that $46K residual price with you.

They will toward the end of the lease. People are able to negotiate these down a few thousand bucks with a dealer (not BMWFS).

[thxbuff2001]

I think your best option to get out of the excess miles is to
trade it before your lease ends to any car hoping they will buy it out

or

wait for a good lease offer to get out of it when the lease offers come in.

Otherwise, you will pay, as I remember, 60 cents per mile.

[Pierre Louis]

It would not be an issue with me.

I agree to just trade it in for a car that meets your needs. The dealer will buy out the lease and fold any extra money owed into the new one. Just be sure the "equivalent percentage rate" is fair on the new lease/loan.

Otherwise, keep it and buy it at the end of the lease - a lease is just like a loan that you also borrow the down-payment, which approximates the value of the car at the end of the lease.

Sleep calmly. Not a big deal. The value of the car is what it is after so many miles.

PL

[AT LAW]

Originally Posted by Pierre Louis

It would not be an issue with me.

I agree to just trade it in for a car that meets your needs. The dealer will buy out the lease and fold any extra money owed into the new one. Just be sure the "equivalent percentage rate" is fair on the new lease/loan.

Otherwise, keep it and buy it at the end of the lease - a lease is just like a loan that you also borrow the down-payment, which approximates the value of the car at the end of the lease.

Sleep calmly. Not a big deal. The value of the car is what it is after so many miles.

PL

Good advice.
Had you known you would be driving 25k per year, you obviously would not have leased.
Hopefully you are driving for business and making a few bucks as a result of your driving.

I have purchased three lease BMW cars in the past. Quite successfully.

You will work through a dealer and not BMWFS. You could make them an offer today on the car, or wait a few months.

The one thing to keep in mind, BMWFS doesn't want your car back, or any of their cars back. Use this as your leverage.

You have driven the car for 46k miles, so you know it well. If you like it, keep it, work a buyout deal, and move on.

If I had a dollar for every lousy financial deal I put myself into over the years......

[babaikram]

Originally Posted by AT LAW

Good advice.
Had you known you would be driving 25k per year, you obviously would not have leased.
Hopefully you are driving for business and making a few bucks as a result of your driving.

I have purchased three lease BMW cars in the past. Quite successfully.

You will work through a dealer and not BMWFS. You could make them an offer today on the car, or wait a few months.

The one thing to keep in mind, BMWFS doesn't want your car back, or any of their cars back. Use this as your leverage.

You have driven the car for 46k miles, so you know it well. If you like it, keep it, work a buyout deal, and move on.

If I had a dollar for every lousy financial deal I put myself into over the years......

Your options are easy: pay the excess mileage (10000 miles extra equivalent to $600). They are going to add it to the cost of your next car and give you substantial discounts as part of your negotiation for the next car.

Or

Keep the car and buy at the agreed residual at the end of your lease periods. This requires a hefty cash at the end at overinflated value but may be worth it.

OR trade it in now. This would be the most costly overall

The first option would be the most convenient financially. The dealers are motivated to sell you a new car. It puts you in a position to decide which BMW you could easily afford the monthly payment based on your mileage, financial status and your desires. I could assure you they would do all they can to sell you another car

[bake]

Those 10,000 extra miles would be $6,000, not $600 "(assuming the rate is indeed 60 cents per mile for overage.

Originally Posted by babaikram

Your options are easy: pay the excess mileage (10000 miles extra equivalent to $600).

[babaikram]

My mistake, i meant 6 cents. in the UK excess mileage usually attracts 6 pence to 10pence per mile.

[Hella-Buggin']

I agree that getting them to roll the cost of the extra mileage into the trade in is your best option. But, if you're going to driving like this, a lease is not for you. See if you can roll it into a purchase instead of a lease.