Thread: Lease Buyout
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      01-21-2021, 11:44 AM   #14
N1rve
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Drives: BMW M4
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2019 BMW M4  [9.63]
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Originally Posted by SikhF80 View Post
Hey guys any advise on Lease buyout. Had the car for 36 months only 22,000 miles. I have 2 months left, interested in keeping the car. Wanted to know if we can negotiate on the buyout price?

My contract states a buyout of $46,500
Taxes would be $4,126

Do you think the dealer would be willing to bring the buyout price down? Wouldve gotten the new m3 awd, but awd doesnt come out till later this year and would rather wait 2 years for any bugs and hoping a refresh for the new model (hate the grill). Thanks in advance
Some people were able to get something off the residual prior to COVID pandemic situation. They called BMWFS and asked and some got like $500 off.

IMO - If you invest in the market, see your returns and the performance of your investments. If they are just tanking right now, I would probably pay off the 50K in one lumpsum, skip the interest that you need to pay off in addition. Don't forget that your lease payments had interest as well. So you'll be paying double interest, interest on the lease and interest on the residual so the total price of the car will jump even higher.

If you don't invest in the market and have safe investments like a CD/Money Market FDIC backed things, the interest is like 0.1% or something like that which is basically like 2 dollars a month.

If your YTD gains are consistently going up and bought good stocks that paid off like (Costco, Tesla,etc) then I would take the loan at 2% or whatever and invest more into the market.

I know some people will disagree with me and will say its heresy to pay off 50K in cash but I look at total cost of I am paying for a car plus what are my other options to get a return.
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N1rve

2019 BMW ///M4 - Alpine White | Sakhir Orange/Black Leather | M-DCT | Executive Package | 19" Black 437M Wheels | Carbon Fiber Trim | Sunroof | Active Blind Spot | Heated Steering Wheel | Adaptive M Suspension
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