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BMW Lease-to-buy?
Has anyone used the BMW lease-to-buy program? They've said that we'd have a lower interest rate and payment if we lease for 3 years and then have the option to purchase at the current certified used rate. The contractual value would be set at 35,829.00 so they couldn't lower the value on us, which was my main concern. The maximum amount of miles per year would be 25k. I just don't see a huge problem with what I'm looking at right now. Does anyone have any experience with this? Thanks in advance  | | Reply » BMW Lease-to-buy? |
What the dealer is asking you to do is to lease the car and then buy it out at the lease end. BMW often has promotional finance rates to move the CPO car. Also the lease will have a residual value which is what will be used to price your lease. You can typically buy the car at that price at the lease end directly from BMWFS. The dealer can also buy the car from BMWFS when you turn it in. They pay the current wholesale price based on MMR (Auction values). This is typically less than the residual. They will then certify the car and extend the warranty to 6yrs/100K miles, and then sell it back to you. Is the $35.8K the price at which they will sell the CPO car? How much is the difference between the lease residual and this price?
Since you are in Oregon, I strongly suggest that you deal with the Board Sponsor Jim Cupp at DeLon BMW in Salem, OR.
| | Reply » BMW Lease-to-buy? |
This has been with Kuni. The sale price is 70,000. 27,000 down minus 3,000 security. Residual is 35,829. I've run some figures, and there is an extra 5,370.12 somewhere as they have my payment set at 505/mo for a 36mo lease with 2.15 interest. Something just isn't quite right.
In any case, I was curious if anyone has had negative experiences with the BMW leasing.
| | Reply » BMW Lease-to-buy? |
I too was wondering how the purchase after lease works.
I'm guessing that if I just purchase the car at the end of the lease for the pre-agreed price, it certainly won't be CPO'ed. If I want it CPO'ed, I'm guessing that the dealer would buy it, CPO it, and sell it to me for somewhat more than I could buy it for from BMW FS, but maybe the difference would make that a 'good deal' considering the value of the CPO warranty??
As to customer service from BMW FS in general, I have found it to be top notch. I've called them a few times and the employees I've spoken with have been very professional and helpful.
| | Reply » BMW Lease-to-buy? |
Quote: This has been with Kuni. The sale price is 70,000. 27,000 down minus 3,000 security. Residual is 35,829. I've run some figures, and there is an extra 5,370.12 somewhere as they have my payment set at 505/mo for a 36mo lease with 2.15 interest. Something just isn't quite right.
In any case, I was curious if anyone has had negative experiences with the BMW leasing. | 1. At 25k miles per year, you'll have 75k miles at lease end on a 3 year lease, which means that you can not get the car CPO'd and will not get any "special financing from BMW".
2. We need alot more to give you an idea of a good payment... MSRP, residual percentage, miles per year, term, rate, etc.
3. $27,000 down on a lease is an absolutely horrible idea. Search this board for post after post describing why. Basically, if you total the car or it gets stolen, you lose all that money and don't take advantage of the gap insurance included in your lease. If you want to keep that down payment, you shoud consider buying it on a straight retail or a balloon finance agreement, since it sounds like you plan to buy it off lease anyways.
| | Reply » BMW Lease-to-buy? |
"We need alot more to give you an idea of a good payment... MSRP, residual percentage, miles per year, term, rate, etc."
If you re-read my post you'll see most of this information in there. MSRP is 72k and residual percentage is 49%. The rest of the information is in the previous post.
I don't plan on driving the car anywhere near 25k a year, that is what they think we should set the miles per year at. They said that setting it higher would be less expensive than setting it at a lesser amount, which makes no sense to me whatsoever.
I will look in to the total loss issue...I was told that gap coverage would protect us in this instance.
Thank you for the information on the customer service of BMWFS. I've had some serious customer service issues with another local BMW dealer and I've never dealt with BMWFS itself.
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BMW Lease-to-buy?