If you lease a BMW, take VERY, VERY good care of it

[Allencic]

Last Friday I turned in my leased 2011 crimson red 128i convertible. The car was fun and trouble free but I had no intention of replacing it with another make or another BMW. I just dropped it off at the end of the lease.

The turn in couldn't have been easier or have gone more smoothly. The 128i was literally like a new car with absolutely no damage or faults. I was not charged a single penny for any dings, scratches, wear, extra miles, etc.

After signing a few papers I was given a "Lease-End Inspection Form" for the Final Inspection confirming that I owed zero for wear and tear. Signed and OKed by me and the dealer.

If you lease you might want to get one of these forms well before you get rid of your car to see what even minor wear and mistreatment will cost you. Or have a very fat wallet.

All these items are listed separately and the cost to you is given if BMW deems you haven't taken proper care.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
A run flat tire with any problems or wear: $300/tire

An alloy rim with any dings or curb rash: $300 each

Windshield with any scratches or star breaks regardless of location: $600

Mirror cover: $100

Side mirror glass: $100

Foglamp: $120

Taillamp: $150

Headlamp: $300

Master Key: $150

Any scheduled mainenance not done: $250 per incident

Any body panel with small or large dings: $400

Roof, rocker panels, doors, etc.: $100 to $400 per

No mention was made for any of the popular "mods". I wouldn't be surprised that BMW will not look kindly on changes you've made to make your car cool, different, or better performing.

It better run perfectly and all features better work as new.

[New21er]

I never lease because of that.

[Rob Daman]

that's some crazy list. i just picked up a leased returned 135i vert in socal.

[the1andonly]

after 29 months of my 36 months lease mine passes all those with flying colors...in fact Ive changed the oil out of pocket every 5k miles. I went to trade my car 2012 128i with 25k on it in on a 135i last month and they offered me a disrespectful $16k...eff them, Ill be buying out my car after lease and it will be almost brand spanking new because of the way I treated it

[Bama335]

I think we've all seen the thrashed out lease return in the local dealer's side lot that's headed straight to auction - yea, that guy probably got hit with some charges.

It's not that bad if you keep your car nice - doesn't need to be pristine, but if you take reasonable care of it there wont be much drama.

BMWFS sends out a lease return kit - when the dealer does the final inspection, they are looking at tires and for major flaws. The tires were about about all they looked at the last time for mine.

Small dings are no charge.

Here's the plastic inspection guide:

[Obi Wong Kenobi]

If you look at what they charge you and try to fix the car yourself, you'll see their "penalty" is really not that bad. You're essentially "borrowing" a car when you lease so they expect you to have taken care of their car when you return it. Bama335's diagram is spot on and you can see, they're not going to knock you for a few small imperfections caused over the term of your lease.

There are pros and cons to both buying and leasing and it just depends on the person's lifestyle to see which type of purchase they should lean toward.

[128Convertibleguy]

Originally Posted by Obi Wong Kenobi

There are pros and cons to both buying and leasing and it just depends on the person's lifestyle to see which type of purchase they should lean toward.

Agreed, but there is some important knowledge that few consider.

When you lease the upfront/monthly cost is lower than a purchase. The way BMW can do that is that they effectively loan you the residual value of the car. And charge interest on that loan. It's all part of the monthly payment, and it's somewhat like a mortgage. The interest rate is buried in the lease paperwork that you sign, it's often called the "money factor". That interest rate, just like a mortgage, will be lower for those with a good credit rating, higher if yours is bad.

Assuming you have no tax advantage in leasing, what you're getting is a lower upfront/monthly payment. And you pay for that, both principal and interest.

Some details here. Short version.

http://www.leaseguide.com/lease07.htm

Long version

http://auto.howstuffworks.com/buying...ease-a-car.htm

Finally, the lease is such a complicated financial transaction that it's very difficult to figure out if you're getting a good upfront price on the car.

Originally Posted by the1andonly

after 29 months of my 36 months lease mine passes all those with flying colors...in fact Ive changed the oil out of pocket every 5k miles. I went to trade my car 2012 128i with 25k on it in on a 135i last month and they offered me a disrespectful $16k...eff them, Ill be buying out my car after lease and it will be almost brand spanking new because of the way I treated it

It sounds like you're doing the right thing for you, given the situation. But it's not exactly "effing" them, depending on the actual selling prices and the lease incentives at the time you leased it, they will probably make more on the whole deal than they would have if you had simply bought the car outright. Moral: If you're pretty sure you're going to buy out the car at the end of the lease, you're better off just buying it.

You can't beat the house.

[Obi Wong Kenobi]

Originally Posted by 128Convertibleguy

Agreed, but there is some important knowledge that few consider.

When you lease the upfront/monthly cost is lower than a purchase. The way BMW can do that is that they effectively loan you the residual value of the car. And charge interest on that loan. It's all part of the monthly payment, and it's somewhat like a mortgage. The interest rate is buried in the lease paperwork that you sign, it's often called the "money factor". That interest rate, just like a mortgage, will be lower for those with a good credit rating, higher if yours is bad.

Assuming you have no tax advantage in leasing, what you're getting is a lower upfront/monthly payment. And you pay for that, both principal and interest.

Some details here. Short version.

http://www.leaseguide.com/lease07.htm

Long version

http://auto.howstuffworks.com/buying...ease-a-car.htm

Finally, the lease is such a complicated financial transaction that it's very difficult to figure out if you're getting a good upfront price on the car.

It sounds like you're doing the right thing for you, given the situation. But it's not exactly "effing" them, depending on the actual selling prices and the lease incentives at the time you leased it, they will probably make more on the whole deal than they would have if you had simply bought the car outright. Moral: If you're pretty sure you're going to buy out the car at the end of the lease, you're better off just buying it.

You can't beat the house.

If you're a smart shopper, a lease is no worse than a regular finance. In fact, if you calculate the money factor BMW gives you these days on a lease, the "interest" is quite low. And you take advantage of multiple security deposits, it gets even lower.

A consumer can get confused by a lease just because they do not know how one works. Just go prepared and you will be fine with a lease if it fits your lifestyle.

Don't get me wrong, I am a believer in both a lease and a finance. In fact, I interchange between both and it just depends on my needs.