End of lease - 2008 135i - should I buy or should I... go?

[LightShadow]

Hi guys,

I usually take over someone else's BMW lease. In this case, I really like the car and despite the accident (hmm, see below) I'd like to at least consider buying the car before I start looking for a new deal.

My question is: at what price would you consider this a steal? How much should I offer BMW (I'm hoping they're willing to renegotiate the residual). Or maybe you think that I should just walk away from it?

There must be a price which would make this a great deal. Good or bad, please give me your view on it.

Now the details:

2008 135i (conf. access, shift paddles, power everything, xenon, rear sensors, leather heated seats etc.)

Original lease start: May 02, 2008 ($52,895 CDN), 5.5%, $0 down, 39 months;
Monthly payments: $858.54 for 39 months (May 02, 2008 to Aug 02, 2011);
I took over this lease on: December 11, 2009 - at that time I received a cash incentive of $4,500 from previous lessee;
Purchase Option Price: $30,420 (that's if I pay what they want on Aug. 02)
Currently it has 37,000 KM (or 23,000 milles);
By Aug. 02 I expect to reach 44,000 KM (about 27,000 miles) which is right within the km allowance.

Now here's the kicker: in June 2010 this guy driving a commercial van decided to switch lanes without checking - he got me pretty good, basically damaging the driver's side. The insurance paid $9,246 CND (front bumper, fender, rear bumper, LF wheel, etc.). I look at this as being mainly cosmetics (the metal was bent... but out of the total $9.2K above, only $2.7K was parts and the rest... labour and taxes). Main parts were: door shell, front fender, wheel repair, new tire.

I'm on my 2nd HPFP. Now, knowing all this:

What new negotiated residual value would make sense for me to buy it?


Thanks for your help

[luvmyone]

Originally Posted by LightShadow

Hi guys,

I usually take over someone else's BMW lease. In this case, I really like the car and despite the accident (hmm, see below) I'd like to at least consider buying the car before I start looking for a new deal.

My question is: at what price would you consider this a steal? How much should I offer BMW (I'm hoping they're willing to renegotiate the residual). Or maybe you think that I should just walk away from it?

There must be a price which would make this a great deal. Good or bad, please give me your view on it.

Now the details:

2008 135i

Original lease start: May 02, 2008 ($52,895 CDN), 5.5%, $0 down, 39 months;
Monthly payments: $858.54 for 39 months (May 02, 2008 to Aug 02, 2011);
I took over this lease on: December 11, 2009 - at that time I received a cash incentive of $4,500 from previous lessee;
Purchase Option Price: $30,420 (that's if I pay what they want on Aug. 02)
Currently it has 37,000 KM (or 23,000 milles);
By Aug. 02 I expect to reach 44,000 KM (about 27,000 miles) which is right within the km allowance.

Now here's the kicker: in June 2010 this guy driving a commercial van decided to switch lanes without checking - he got me pretty good, basically damaging the driver's side. The insurance paid $9,246 CND (front bumper, fender, rear bumper, LF wheel, etc.). I look at this as being mainly cosmetics (the metal was bent... but out of the total $9.2K above, only $2.7K was parts and the rest... labour and taxes). Main parts were: door shell, front fender, wheel repair, new tire.

I'm on my 2nd HPFP. Now, knowing all this:

What new negotiated residual value would make sense for me to buy it?


Thanks for your help

Just so you know BMW Canada will NOT renegotiate the residual value at lease end.You pay the payout....or you walk away from it!!
My advice is the buyout is too high...the car is not worth that much.

[LightShadow]

Wow - I had no idea they wouldn't do that. One would think that after a $10K repair, the value of the car is not anymore the same as before the accident.

Thanks for the info.

[richsnuc]

Walk away and consider a new one!

[johndeere]

I've got an 09 135 (48 month lease) and my buyout is $19400. Accounting for the 9 extra months of payments, my buyout would've been $25600, so I'd say walk away. Not a good deal.

[jpd]

Another point to consider that the value of your car has been diminished by the accident. Walk Away!!!!

[Brandon26pdx]

In this case you're darn lucky you leased, because you can walk away from the car financially unscathed. (Which is what you should do)

[UdubBadger]

N55 is dominate

[Angry3]

Originally Posted by UdubBadger

N55 is dominate

If you say so lol.

Wrecked car? Say adios. Had the same thing happen to mine, blasted in the rear by a drunk. No structural damage and the repair turned out well, but I'm not about the pay a buyout based on an already inflated end of model year residual to keep a car that's been hit.

BMW can have it back, wholesale it, and take the hit themselves. Shame because I would buy it if a dealer would give me a number in line with its MMR value plus $1K or so in profit, but that's not how things are done now.

Toss them the keys and find a better option.