Lease End Decision: Buy Out/Walk Out?

[Angry3]

Trying to make a decision on what to do with my '08 135 Convertible. I've had the benefit of a great lease made in early 2009 when there was a ton of excess 1-series inventory on the ground. They had leases with super-low money factors and what I thought would be a grossly inflated residual given the car was an '08 model being sold in 2009 (58% of MSRP).

The problem is, the 1 series has found a cult following, BMW has reigned in the number they bring here, and the car I have that stickered at $48K would now be $53K to replace...

I had already decided to walk from the car at the contract residual (a bit below $28K), but I have a dealer willing to sell the car to me outright at about $3K under the contract buyout amount.

So the net out is I can buy out this car:

2008 135 Convertible

37,800 miles

Excellent mechanical and cosmetic shape, full service records, one HPFP replacement, no aftermarket modifications

One low-speed rear-end accident that was repaired at a BMW Certified shop, (replaced bumper and trunk lid), don't know/care if it made it onto the Carfax report (not about to give that joke of a company $20 to find out since I would fully disclose it to a future buyer anyway)

Factory Options:

Premium Package
Sport Package
Cold Weather Package
Steptronic Transmission
Comfort Access System
Ipod/USB adapter

$24,800 is now the buyout number. I took delivery of the car with 7 miles on it and have had it since. It isn't perfect, but it certainly hasn't had an overly hard life as these twin-turbo cars go.

Since the in-service date was 3 years ago Monday I still have a full year of factory warranty on it, and could either buy an extended warranty or bank a similar amount of money for repairs for the year or 2 I would keep it beyond the warranty period.

Though the car has spent more time at the dealer than I would like, I still enjoy driving it, and really don't know what I would buy for similar money that would touch it from a fun perspective.

Leaning toward buying it out, anything I should consider that I'm missing? Has anyone gone through a similar decision and have thoughts to share?

Thx all.

[USNEM_128i]

I personally wouldn't buy it out, unless you really really want to. In a couple of years that 135i could give you way to many problems. I have two friends of mine that have a 08 135i and they regret keeping it. : /

[ken1137]

I have an '08 and no problems to report. Yes, HPFP is on it's 3rd one, but I have yet to have a problem since I bought it and if I do it can be replaced under warranty (10 yrs - 100,000 mi). The buy-out is fairly low so if you are comfortable with the car and can handle some maintenance on your own then by all means keep it

[Cuz5150]

"$24,800 is now the buyout number"

From what you have wrote....you are aware of your surroundings.

I'll keep it simple and say this to ya.

Where can you go and purchase a Vert/Luxury/German for $24.8?

If you find a better vehicle/....Go and buy it!!!!If not, truck on with the 135i.

[ejm3]

See if you can negotiate down the buyout. I know people who have done this successfully albeit not BMW's.

[Pangloss]

Originally Posted by Angry3

The problem is, the 1 series has found a cult following, BMW has reigned in the number they bring here, and the car I have that stickered at $48K would now be $53K to replace...

I don't believe that to be the case. I bought my car for way under sticker back in August, and it was sitting on the lot with several other convertibles and a bunch of coupes. I only paid maybe a grand over invoice, and got the impression I could have saved a couple hundred bucks more if I'd really pushed. There are threads all over the board here from folks who paid a couple hundred over invoice.

Prices may have gone up since 2008, I don't know, but probably not by 10%.

[ejm3]

Yeah no way you would pay $53k for that car. I paid about $750 over invoice for my ordered 2012 135 convertible and I probably could have done a little better if I was willing to wheel & deal more.

[slim_e90]

I paid a little over that a year ago for a CPO vert from a BMW dealer. I have the same options minus CA.

I would see if they can CPO it for you for $25k OTD (out the door). Then it'd be worth it as you'll be covered until 2015 given the late in service date.

Its great car. Good luck

[KingOfJericho]

If they're willing to sell it for $25k WITH the CPO warranty, I would jump on it. I am very much in the same boat. I have 6 months left on my lease and pondered giving up the car, but to find a car that is this much fun and loaded with this many features, I would be looking at $35-50k easily. Even at my contracted residual ($28k), there is no other car out there that offers as much in terms of performance and features. With the CPO, you can rest easy for a few years. I've been active on this forum for 4+ years and in that time, I have yet to see a catastrophic engine failure or any other massive mechanical or electrical issues that would have you selling your furniture to pay for.

[KingOfJericho]

Originally Posted by ejm3

Yeah no way you would pay $53k for that car. I paid about $750 over invoice for my ordered 2012 135 convertible and I probably could have done a little better if I was willing to wheel & deal more.

All he was trying to say is that the MSRP for his car has increased significantly. I would certainly hope that he knows enough not to pay sticker for the car.

[RPM90]

Originally Posted by ejm3

See if you can negotiate down the buyout. I know people who have done this successfully albeit not BMW's.

Read a bit closer and you'll see that BMW has already lowered the price by at least $3000. That's pretty darn good for a lease buy out.

OP:
I'm in a similar situation to yours, and here's my thinking.
My lease is up at a the end of June for my 2009 135i coupe.
I was hoping BMW would announce something about the replacement 2 series, but nothing. The new 3 sedan looks promising, but it's not exactly what I want as it's a big car now, nothing like my E46 325i.

I don't want to lease another 135i cause I have one now, and it has low miles at 25K. So, I'm considering leasing a 135i vert with DCT as that would be different enough to hold my interest. Maybe just a 2 year lease to see what the new 2 will look and drive like.

The other option is to buy my 135i with a CPO and drive it for another year to see what the new 2 will be. Given that I only put 10K miles on the car, it will still be under 40k miles selling it the following year with a CPO.

If you like your 1, and you don't have a desire for another car, then go for it and buy your 1. If you lease for the same reason I do, which is to drive a different car every 3 years, then why consider buying it, just go with your next car.

I would do this as well except for the fact that BMW is taking their sweet time with getting the new 2 series to us. If I could order a 228i or 235i and get it by early fall, then I would do that. But BMW doesn't have a 2 ready to go.

The price offer BMW gave you is pretty good for a vert. Negotiate a CPO and you'll be in a good position to sell the car next year if you find something else by then.

[Angry3]

Originally Posted by KingOfJericho

All he was trying to say is that the MSRP for his car has increased significantly. I would certainly hope that he knows enough not to pay sticker for the car.

Yes, thank you. My point was indeed that the cost of these cars shot up significantly for the 2012 model year, and I think that's certainly had at least some effect on the used market. The $53K MSRP I guessed for a 2012 equivalent was about $2K on the high side after running the configurator, but these cars new have certainly become a bit less attainable.

Originally Posted by RPM90

Read a bit closer and you'll see that BMW has already lowered the price by at least $3000. That's pretty darn good for a lease buy out.

OP:
I'm in a similar situation to yours, and here's my thinking.
My lease is up at a the end of June for my 2009 135i coupe.
I was hoping BMW would announce something about the replacement 2 series, but nothing. The new 3 sedan looks promising, but it's not exactly what I want as it's a big car now, nothing like my E46 325i.

I don't want to lease another 135i cause I have one now, and it has low miles at 25K. So, I'm considering leasing a 135i vert with DCT as that would be different enough to hold my interest. Maybe just a 2 year lease to see what the new 2 will look and drive like.

The other option is to buy my 135i with a CPO and drive it for another year to see what the new 2 will be. Given that I only put 10K miles on the car, it will still be under 40k miles selling it the following year with a CPO.

If you like your 1, and you don't have a desire for another car, then go for it and buy your 1. If you lease for the same reason I do, which is to drive a different car every 3 years, then why consider buying it, just go with your next car.

I would do this as well except for the fact that BMW is taking their sweet time with getting the new 2 series to us. If I could order a 228i or 235i and get it by early fall, then I would do that. But BMW doesn't have a 2 ready to go.

The price offer BMW gave you is pretty good for a vert. Negotiate a CPO and you'll be in a good position to sell the car next year if you find something else by then.

Thanks for the thoughts, I did negotiate a buyout on the car below the contract residual. Anyone that has tried to do this in the last year knows that buying your lease out for less than the residual is no longer trivial to do, especially with the used car market being on fire. 4 of the 5 dealers I contacted, including my local center, either promised to look into this and never followed up, or just told me to do my buyout through BMWFS (which I expect means there's seldom enough spread between the higher price the dealer pays to BMWFS when selling a car to an original lessee and the contract buyout amount to even justify the time spent looking into the possibility).

Between the accident history and the fact my car is a bit over on miles there was a spread, and it sounds like my selling dealer has offered to give all or most of it to me to get credit for a sold unit and have the chance to make some money on an extended warranty or financing.

CPOing the car in my case isn't a possibility since the dealer I originally leased the car from and am working with here is 12 hours away. I can do the Gold or Platinum BMW warranties, which I'm told would run between 3 and 4 grand depending on the coverage level and term.

I totally know where you're coming from RPM90, the fact that there isn't a ton of difference in an '08 model and a '12 and not much info about what's in the pipeline makes these decisions tricky. I looked hard at leasing a '12 model over the holidays, as these cars had good residuals and there was a killer extended loyalty perk for those who had leases maturing before April ($1K + a bonus .00075 drop in the money factor, plus the $500 MTD cash) But even with that benefit I was getting quoted nearly $600 a month by the 2 dealers on the entire east coast that had a suitable car on the ground (no orders with that program). I just couldn't see going up $100 a month in payment with higher inceptions while moving from a 'vert to a coupe. I did use that loyalty perk to help my fiancee score a great lease on an '11 328 sedan with that killer 27 month program that ran in the northeast region in Nov/Dec (71% residual at 12K miles, loyalty perks, and big discounts on the selling price made for a pretty nice lease IMHO).

I really appreciate all of the replies. I went through surgery to remove a second herniated disc in my neck a week ago, and am trying to deal with all this stuff while recovering. It's nice to be able to get some feedback on a tough decision you have to make when you're hurting and going bat sh*t crazy from the forced inactivity. You all have my sincere thanks.

Cheers!

[J0E]

I think it really just depends on how much you love the 1 series. Right now, there is no way you are buying a fully loaded 2008 135i with 30k miles for $24,800 and in this case you know exactly who and how it was driven before you took ownership. Seems like a good deal to me. I would say go for it. I guess in the end it depends on how much you trust the car to hold up another few years.