[eekthecat]

My 36mo/12k mi/yr lease is up in Mar-2011, and since I enjoy the car shopping process, I'm starting to think about my options a bit early. Today, I have only 11.5k miles on the car, and it's in immaculate condition (of course, since I said that, I'm going to walk out to the parking lot and it'll be mangled by a tree).

KBB puts the value of the car (E92 335, Sport/Nav) at:

Retail: $39.1k
CPO: $40.4
Private: $35.3
Trade-in: $32.0

My residual is $29k (I guess that's the twist), so almost in every case, it'll be worth more (or very close to) the buyout amount.

Now, I love the car -- only issues being a failed HPFP and a little rattle in the box behind the sunroof that the dealer can't find. (and a black car being impossible to keep clean), but I can't help but have a wandering eye. One of the reasons I lease is because I do enjoy having a new car every couple of years, and I don't put a lot of miles on my cars.

Nothing beats this car at $29k, so I imagine I'll have to go higher or lower for any move to make sense:

1) Lower: VW Jetta -- my wife has one, and while it's not even in the same ballpark, it's a great little value, and cheap
2) Higher: MB E350 Coupe -- it's just flat out gorgeous, imho, and a more than able ride, but at nearly $55k, it's almost out of reach for me at the moment. It gives me the same (even a bit more) of the excitement from when my e92 as new.
3) Nice, but doesn't make much sense: Audi A5 -- why pay more (at least $45-50k) for a car that is as nice looking, but doesn't drive nearly as well as my e92 for $29k?
4) Different Form Factor: Audi Q5 or MB GLK -- I'd still be paying around $45k for a car that doesn't perform as well as my $29k e92, but at least it has the excuse of being a smallish SUV

Sorry for the stream of consciousness post.

So, any thoughts or advice on whether I should just pony up the buyout amount in a few months or any other creative solutions (if trade-in > buyout, then trade it in -- I won't do a private sale) would be appreciated!

[ArabianSensation]

$29k is a good deal for an 08 with only 11k miles.

I'd buy it. Surprising your buyout price is so low.

[eekthecat]

Well, the residual is technically $28.8k -- I'm sure they will tack on a few fees, plus sales tax on that too. Plus I've got ~$5k in MSDs coming back

I also wonder if I should/can withhold the mileage info from the dealer while I negotiate the buyout and/or CPO amount? Surely a car w/ (by 3/2011) 14k mi is going to be a whole lot more attractive to them than one with 60k mi...

[noro]

If there is that much discrepancy as you claim between the buy-out and the real market trade-in, if I were you I would attempt to trade-in that car for a different purchase. What is your today's buyout?

[Trojan4evr]

if you like to chabge your car every couple of years then go for an e90 M3

[10beers]

With such a big difference try trade in like above or possibly selling third party and make some money off it!

[smc]

<-- Owned an Audi. Had several friends that owned Audi's. Will never own one again. I'm sure there are people that have great cars, but every Audi I've ever know has been a nightmare.

[eekthecat]

Originally Posted by noro

If there is that much discrepancy as you claim between the buy-out and the real market trade-in, if I were you I would attempt to trade-in that car for a different purchase. What is your today's buyout?

Today's buyout is just a hair over $32k... not sure if that includes sales tax, but probably not.

[kyleJB328]

Honestly, I would buy your BMW. You will regret getting rid of it, and for 29,000 to buy it outright... is a pretty smart investment. You've had it since new, it practically is new. Plus to me, and a lot of other people... you're driving one of the most beautiful cars on the road. I would buy the extended warranty and grow old with the car- BMW's age gracefully

[Joonsup]

i dont think you can hide the miles b/c all that is stored on the keyfob i think. Your residual is pretty low so it may be worth it to buy out if the market value is higher since you could always sell it and possibly make a few bucks off of it

[noro]

Originally Posted by eekthecat

Today's buyout is just a hair over $32k... not sure if that includes sales tax, but probably not.

Oh, so you are comparing the values today against your residual in the future. Basically what's gonna happen is that your current payoff is going to be in line with the market trade-in from now till the end. So the real place money can be made is if you sold the car private party, that assumed the taxes you pay in the middle aren't going to wipe away your profit.

[ybzanini]

not doubting your numbers or anything...but I feel like those numbers might be a bit high. I bought my 08 335i CPO last week with 20k for $33k out the door. CPO at $40K seems a bit too high in my opinion and might not reflect reality.

just my 2 pennies

PS. My car is loaded (Nav, comfort, sport, heated seats, etc...)

[Angry3]

Couple of thoughts:

1. I doubt there's anyone on the planet that would pay $40K for any 2008 E92 right now. KBB is almost always a poor measure of real world value.

2. You car will most likely be worth something within a couple grand of the buyout next March assuming the used market stays about where it is.

3. Keep in mind that your buyout quote factors in your MSDs. So your actual buyout right now is effectively $37K if you consider that.

4. Being significantly below miles on your lease isn't a good thing. Not only have you already paid for more use of the car than you've given it, being way under miles basically crushes any chance of negotiating a better buyout number than the one in your contract.

5. The odds of you being able to buy the car and sell it to someone else for profit are slim to none since you'll have to pay tax on the car at purchase time.

Honestly if the car is in great shape and the buyout is at least somewhat in line with the market buying it is probably the smartest thing to do. Just see where you're at in 9 months

[pony_trekker]

That deal is sick. No question that's the move.

The MB E350 is a POS. Better off buying an Accord.

Wait is that after deducting the MSDs? If so, it's NOT so sick...

[jbass524]

You're not going to find anything close to the E92 for your buy out.

I bought my car from lease also and I had the same buyout. I negotiated down to 26,500. Since your buyout is defined at lease inception the mileage doesn't matter. Negotiate hard and keep one of the best cats ever made.

With the money you save, you can buy an exterior mod to give you a little retail jolt. It's like getting your wife to wear CFM pumps and getting her all tramped up...adds a little spice

[michaelthepsycho]

Keep walking down the road of leasing. Or you'll just be pissed off every time you see another car. I would love to lease but no "income"

[eekthecat]

Originally Posted by Angry3

Couple of thoughts:

1. I doubt there's anyone on the planet that would pay $40K for any 2008 E92 right now. KBB is almost always a poor measure of real world value.

2. You car will most likely be worth something within a couple grand of the buyout next March assuming the used market stays about where it is.

3. Keep in mind that your buyout quote factors in your MSDs. So your actual buyout right now is effectively $37K if you consider that.

4. Being significantly below miles on your lease isn't a good thing. Not only have you already paid for more use of the car than you've given it, being way under miles basically crushes any chance of negotiating a better buyout number than the one in your contract.

5. The odds of you being able to buy the car and sell it to someone else for profit are slim to none since you'll have to pay tax on the car at purchase time.

Honestly if the car is in great shape and the buyout is at least somewhat in line with the market buying it is probably the smartest thing to do. Just see where you're at in 9 months

Thanks everyone for the input.

The buyout figure I listed did not include the MSDs... (i.e. buyout *today* is ~27k, post MSDs, so I added the MSD amount back onto it before I posted). My figure is a bit low, since I did not include any purchasing fees or taxes.

I figured that the KBB numbers were a bit high, though during a recent trip to my local dealership, I was astounded by how much CPO'd 3-series were going for.

Considering the numbers, I guess know what the "smart" move is (well, buying at the end of the lease probably isn't ever really "smart", but relatively speaking)... It's a great car, the amount isn't back breaking, and I have a good shop to bring it to when it leaves warranty... but the allure of something "different" is tough to get away from. Truthfully, getting the 335 (instead of a 328, or an even more "practical" car) wasn't terribly "smart" (with my short miles) anyway

As for a new lease, it seems like lease deals are terrible right now, with really low residuals and very high money factors -- I'll have to re-examine the market toward the end of the year.

Thankfully I have some time to think it over.

[pwrdbym]

Originally Posted by eekthecat

Today's buyout is just a hair over $32k... not sure if that includes sales tax, but probably not.

If you decide to keep the car you shouldn't have to pay sales tax again since you already paid it on that car. Most states (?) require you to pay the tax on the entire price of the car, not just the amount of the lease.

[eekthecat]

Originally Posted by pwrdbym

If you decide to keep the car you shouldn't have to pay sales tax again since you already paid it on that car. Most states (?) require you to pay the tax on the entire price of the car, not just the amount of the lease.

My understanding is that I already paid sales tax on the portion of that I've used (leased), and still would have to pay sales tax on the buyout amount.